<Research Report>ANHUI CONCH (00914.HK) rated Buy, target lifted to $40 - BofAML
Apr 4, 2014
In the latest research report, BofA Merrill Lynch projected ANHUI CONCH (00914.HK) 1Q results may be better than expectation, as the net profit is estimated to grow 145%, while gross profit per ton is estimated to reach RMB95, against previous forecast of RMB75.
Though the sales yearly growth of 4.5% to 48.3 million tons may disappoint the market, the robust profit margin reflects the intention of maintaining the high cement price in the core market.
Meanwhile, Anhui Conch expressed that it will actively seek acquisition opportunities, which may result in upside potential for earnings.
Also, the cement demand may be boosted by the recently launched supporting policies.
The 2014 earning forecast was raised by 12% to RMB14.3 billion. The target price was lifted from $35 to $40, with Buy rating, BofA Merrill Lynch concluded.
Source: AAStocks Financial News