Siam Cement
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Cracking the code for growth Outperform Share price: Bt 346.00 Target price: Bt 411.00
Siam Cement Plc (SCC)
A well-balanced portfolio of domestic and global exposure, inorganic growth opportunities and cheap valuation make SCC an attractive stock. SCC’s wide exposure to emerging ASEAN markets and its disciplined capital management reinforce its ability to create value. We reinitiate coverage on SCC with an OUTPERFORM call (target price based on a 10% discount to our DCF valuation), projecting a 24% EPS CAGR for 2011-14 driven by three key drivers – volume growth, margin expansion and growth via M&A.
