HLCM raised its third quarter 2020 (3Q20 EBITDA) by 28.1 per cent to P1.5 billion from P1.2 billion in the same timeframe in 2019, powered by comprehensive business-wide cost control and performance enhancement measures. For 3Q20, net income soared from P457 million by 34.2 percent year-on-year to P614 million. However, the rebound of the third quarter was not enough to compensate for the effects of the Covid-19 pandemic, which culminated in the suspension and stagnation of building activities.
Other Merger Performance
HLCM has authorized the merger of Mabini Grinding Mill Corp., Bulkcem Philippines Inc. and Holcim Philippines Manufacturing Corp. with the group. The planned merger would streamline the organizational structure, which would result in cost reductions for the group.
We would like to reiterate our Buy rating on HLCM with an adjusted Target Price of P9.07 per share.