Operating Margin

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Price: 7.95 MYR -0.62%

Market Cap: 11B MYR

26%

Improving

by 8.7%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

26%

Operating Income

1.2B

Revenue

4.6B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

26%

Operating Income

MYR1.2B

Revenue

4.6B

Peer Comparison

Country		Company	Market Cap	Operating Margin
MY	M	Malayan Cement Bhd KLSE:MCEMENT	10.9B MYR	Loading...
IE	C	CRH PLC NYSE:CRH	82.6B USD	Loading...
CH		Holcim AG SIX:HOLN	43.2B CHF	Loading...
DE		HeidelbergCement AG XETRA:HEI	41.8B EUR	Loading...
IN		UltraTech Cement Ltd NSE:ULTRACEMCO	3.7T INR	Loading...
US		Vulcan Materials Co NYSE:VMC	39.2B USD	Loading...
US		Martin Marietta Materials Inc NYSE:MLM	39.1B USD	Loading...
DE	H	Heidelberg Materials AG XMUN:HEI	27.4B EUR	Loading...
US	A	Amrize AG SIX:AMRZ	22.8B CHF	Loading...
IN		Grasim Industries Ltd NSE:GRASIM	1.9T INR	Loading...
MX		Cemex SAB de CV NYSE:CX	18.9B USD	Loading...

Market Distribution

Min	-51 526.8%
30th Percentile	0.6%
Median	6.7%
70th Percentile	13.5%
Max	3 753.7%

Other Profitability Ratios

Malayan Cement Bhd
Glance View

Market Cap

11B MYR

Industry

Construction

Malayan Cement Bhd, a stalwart in Malaysia's construction landscape, traces its roots back to the post-war era when the nation embarked on an ambitious journey of rebuilding and modernization. Originally established as a cornerstone for infrastructure development, the company has evolved over the decades to become a leading supplier of cement, clinker, ready-mixed concrete, and aggregates in the region. Aligned with the relentless infrastructure growth in Malaysia, Malayan Cement operates large-scale manufacturing facilities that produce an extensive range of cement products catering to the needs of residential, commercial, and industrial construction projects. By leveraging advanced technology and sustainable practices, the company ensures high quality and efficiency, positioning itself as a key player in Malaysia's construction sector. Today, Malayan Cement makes its mark not just by churning out millions of tons of cement annually, but also through strategic market expansions and astute vertical integrations. The company's revenue stream primarily flows from supplying bulk cement to large infrastructure projects, traditional retail sales to small builders, and ready-mixed solutions to urban developments. By integrating upstream and downstream operations, Malayan Cement optimizes its production process and distribution network, ensuring cost-effectiveness and time efficiency. Additionally, its commitment to sustainability has opened avenues for environmental certifications and green building endorsements, which are increasingly becoming prerequisites for many modern constructions. Through strategic partnerships and a constant drive for innovation, Malayan Cement continues to cement its legacy, quite literally, as a pivotal player in Malaysia's growth story.

View MCEMENT Analysis

MCEMENT Intrinsic Value

Overvaluation 1%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Malayan Cement Bhd
KLSE:MCEMENT

Peer Comparison

Market Distribution

Other Profitability Ratios

Malayan Cement Bhd
Glance View

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Malayan Cement Bhd KLSE:MCEMENT