Citi Research cut target price for China Resources Cement to HK$4.4 from HK$6.3
COMPANY NEWS STOCKS VIEWS & ANALYSIS
Citi Research cut target price for China Resources Cement to HK$4.4 from HK$6.3
COMPANY NEWS STOCKS VIEWS & ANALYSIS

Citi Research cut target price for China Resources Cement to HK$4.4 from HK$6.3

 

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Cement demand in southern China is in line with national demand trends, with infrastructure accounting for 53.2% of demand in the first half of the year, and will continue to support overall demand through 2023, said Citi Research in a note.

China Resources Cement’s management expected the government to unveil more easing policies to support demand next year and estimated that demand will improve in the second half from a low base a year ago. In addition, it’s guidance for full-year cement and clinker sales is about 70 million tonnes, slightly lower than 75 million tonnes last year.

Citi lowered its profit forecasts for the company for 2023/24/25 by 48%, 48% and 46% to reflect the drop in the forecast for average cement and clinker prices and sales volumes. The forecasts are 33%, 18% and 12% below market expectations. 

Citi cut its target price for China Resources Cement from HK$6.3 to HK$4.4 and maintained its Buy rating.