Anhui Conch Cement 0914

[winston]

not vested

Apr 27, 2021

<Results Ann>CONCH CEMENT 1Q NP Up 18% YoY

CONCH CEMENT (00914.HK) announced that the net profit for the first quarter was RMB5.809 billion according to Chinese Accounting Standards, an increase of 18.22% year-on-year.

Source: AAStocks Financial News

[winston]

not vested

Anhui Conch Cement Co (914 HK)
1H21: A Resilient Set Of Results; Expect Demand To Recover In 4Q21

Anhui Conch Cement posted 1H21 net profit of Rmb14.97b, down 7.0% yoy, slightly
above expectation.

Sales volume grew 9.2% yoy to 154m tonnes with net cash position well sustained.

The company managed to maintain its 2Q21 margins at a healthy level despite surging coal prices.

We expect margins of cement players to remain under pressure in 3Q21, but expect demand to rebound in the peak season in 4Q21.

Maintain BUY. Target: HK$51.00.

Source: UOBKH

https://research.uobkayhian.com/content ... da7f2805d2

[winston]

not vested

Anhui Conch Cement (914 HK / 600585 CH) - New carbon management plans

Anhui Conch is expected to see continued profitability, supported by its leading position in eastern and southern China.

Anhui has a track record of managing its costs well in the past, which should help in supporting margins during downturns.

Given its strong capital position (in net cash), the company is also positioned to make strategic acquisitions.

Near term risks to monitor include margin pressures and regulatory risks (previous anti-trust meetings between the government and major cement players on the topic of rising cement prices).

Overall, Anhui’s supportive dividend yield and strong balance sheet position makes it a relatively more defensive pick although its ESG track record has lagged industry peers.

FY20 dividend payout ratio of 32% was flat from previous year, with room for improvement given its net cash position.

In terms of carbon management, management has announced in August 2021 targets to reduce emissions by 1% in 2021, 5% by 2025 and 15% by 2023. BUY.

Source: OCBC

[winston]

vested

CONCH CEMENT(914)

Analysis：

Being a market leader, Conch Cement`s (914) production capacity of clinker, cement, aggregates and commercial concrete amounted to 264 million tonnes, 372 million tonnes, 58.30 million tonnes and 4.20 million cubic metres respectively.

While steadily proceeding with the construction of domestic and overseas projects, the Group will accelerate the implementation of a complete supply chain development approach by strengthening to the development of its aggregate business, with an emphasis on the construction of large-scale aggregate projects; actively developing commercial concrete business, with an aim to create new industrial growth poles. (I do not hold the above stock)

Strategy：
Buy-in Price: $42.60, Target Price: $46.60, Cut Loss Price: $40.00

Source: Phillips

[winston]

not vested

CONCH CEMENT(914)

Analysis：

Conch Cement (914) will continue to promote domestic development, speed up
the construction progress of existing projects, and make every effort to push
forward its merger and acquisition projects to further improve the market layout.

The Group will continue to expedite its expansion of upstream and downstream industrial chain, progress with the expansion of aggregate projects and production capacity utilization with full strength, speed up the planning for commodity
concrete industry, vigorously promote the development of new energy industry, to create new industrial growth engines.

The Group will steadily promote overseas development and proactively build a diversified cooperation model.

As at 31 December 2021, the Group's production capacity of clinker, cement, aggregates and commodity concrete amounted to 269 milliontonnes, 384 million tonnes, 65.80 million tonnes and 14.70 million cubic meters respectively, and the installed capacity of photovoltaic power generation amounted to 200 MW. (I do not hold the above stock)

Strategy：
Buy-in Price: $42.00, Target Price: $45.00, Cut Loss Price: $40.00

Source: Phillips