Equity Analysis /

BANGLADESH CEMENT: Upgrade Lafarge, initiate Heidelberg; both Hold

    Vahaj Ahmed
    Vahaj Ahmed

    Head of Industrials Equity Research

    Tellimer Research
    20 July 2018
    Published byTellimer Research
    We update our assumptions for LafargeHolcim (LHBL BD). Earlier this year, LHBL (previously Lafarge Surma or LAFCEM BD) completed its acquisition of a 100% stake in Holcim Bangladesh. Our estimates now include forecasts for Holcim’s 2.2mtpa grinding capacity. We also initiate Heidelberg (HEID BD) with Hold. Our target price of BDT331 suggests an ETR of -6%. HEID is the seventh-biggest cement supplier in Bangladesh, with a total installed capacity of 2.4mtpa and units in Dhaka and Chittagong.