HUME Cement Industries Bhd is exploring ways to diversify its revenue streams beyond cement, following its decision to exit the loss-making concrete segment. The company is in the process of selling Hume Concrete Sdn Bhd to YTL Corp Bhd for RM215 million, a move aimed at focusing on core operations and reallocating capital to its cement business.
Tan: We have consistently demonstrated our commitment as a reliable business partner, having supported several major national projects, including The Exchange 106, Merdeka 118 and the ECRL [East Coast Rail Link].
The sale, approved by shareholders on March 4 and expected to close by the second quarter of 2026, will generate a disposal gain of RM185.74 million. Of this, RM148.9 million is earmarked for investment and expansion within Hume Cement, while RM63.8 million will strengthen working capital. The divestment also reinforces the group’s net cash position, which stood at RM87.27 million at the end of December 2025.
William Tan Kok Siang, newly appointed group managing director, said the company is exploring opportunities in non-cement segments, including niche technologies that could mark its entry into new business areas. “The traditional precast business has low barriers to entry. We’re looking at innovative technologies to diversify the group’s business,”.
Hume Cement operates a fully integrated plant in Gopeng, Perak, with an installed capacity of three million tonnes of clinker and five million tonnes of cement per year, currently running at 60–70% utilisation. The company is the third-largest cement producer in Malaysia, behind Malayan Cement Bhd and Cement Industries of Malaysia Bhd (UEM Group).
The group’s profitability has improved steadily, with net earnings of RM210.94 million in FY2024 and RM223.17 million in FY2025, up from RM60.03 million in FY2023. For 6MFY2026, net profit fell slightly 2.7% to RM125.46 million, affected by the absence of a one-off gain recorded in the previous year. Tan expects FY2026 to be stronger, supported by robust market demand and higher margins.
Hume Cement is also investing in sustainability initiatives, including two new green cement products expected by year-end, which will account for 30–40% of future sales. Additionally, the company is spending RM100 million on a waste heat recovery system, anticipated to cut electricity use by 20% and reduce Scope 2 CO2 emissions by 50,000 tonnes annually.
The group continues to prioritise high-margin projects over volume-driven work, with past contributions to major national projects like The Exchange 106, Merdeka 118, and the East Coast Rail Link (ECRL). Tan also highlighted efforts to optimise costs, including a hands-on approach to managing coal and electricity expenses.
Currently focused on the domestic market, Hume Cement has stepped back from exports due to higher manufacturing costs and taxes. The group is 72.77% owned by Tan Sri Quek Leng Chan’s Hong Leong Group and trades at a price-to-earnings ratio of 11.1 times, compared to 12.2 times for larger peer Malayan Cement. Analysts at UOB Kay Hian have set a target price of RM4.87, implying a 44% upside. Hume Cement’s share price has risen 32.4% over the past year.
