KUALA LUMPUR, Dec 24 — Hong Leong Investment Bank (HLIB) has reiterated a 'buy' call on French industrial company Lafarge Malaysia Bhd, following the company's recent contract secured for a duration of five years worth RM254 million.

Lafarge was recently awarded a contract to supply concrete for the Refinery and Petrochemical Integrated Development project and other Petronas related projects at Pengerang, Johor.

On a separate note, Lafarge Malaysia also announced its acquisition of a cement mill and ancillaries from Lafarge Ciment (Romania) S.A. for €10.7 million (equivalent to RM45.96 million).

"We view the contract award as positive news and in line with our positive outlook on the company," the research house said in a statement.

It said the acquisition by Lafarge Malaysia is beneficial as acquiring a relatively new cement mill and equipment from a related party would generate cost savings compared to buying a new mill from a different party.

Hong Leong Invesmtent Bank has set a target price of RM10.72 for the company specialising in three major products: cement, construction aggregates, and concrete.

At 10.30 am, Lafarge Malaysia's share price was flat at RM9.91 with 63,100 shares changing hands. — Bernama