Cement – China
Weak Price And Sales Volume in A Low Demand Season; Trim Target Prices
National cement prices have been trending down since late-May with 5M21 national
cement production yoy growth slowing to 19.2% yoy.
Inventory has been piling up due to unfavourable weather conditions and weak construction activities.
Cement-coal spread shrank in 2Q21.
Valuation is now approaching a historical low due to the pessimistic outlook amid the low demand.
Maintain MARKET WEIGHT on sector-wide undemanding valuation, but trim target prices of Anhui Conch, CR Cement, and CNBM.
Source: UOBKH
https://research.uobkayhian.com/content ... 33be6c302b
|
|
Cement Producers
Re: Cement Producers
by winston » Wed Jul 14, 2021 10:00 am
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 118900
- Joined: Wed May 07, 2008 9:28 am
Re: Cement Producers
by winston » Mon Sep 06, 2021 4:01 pm
China - Citi: Cement Shrs May Keep Outrunning Mkt in 2H21; CONCH CEMENT Sees 3 Catalysts in Near Term
Citigroup expressed that, after tracking relatively weak performance from over 1H, the cement sector has been again included in the top pick list last month.
The broker contended that the cement shares are believed to continue outperforming the market over 2H and that now is the optimal timing for investors to purchase.
Among the building material stocks, Citigroup chose the followings as the top picks: CNBM (03323.HK), CONCH CEMENT, CHALCO (02600.HK), ANGANG STEEL (00347.HK), ZIJIN MINING (02899.HK).
C Suisse Cuts CONCH CEMENT (00914.HK) TP to $60; Rated Outperform
CONCH CEMENT is favored mainly due to three near-term factors, namely the upcoming appointment of the new chairman, which is projected to bring new stimulus to the earnings performance in 2H, the management share incentive plan and the previously announced RMB20 billion investment in new energy segment over the 14th FYP period, Citigroup added.
The broker rated CONCH CEMENT at Buy with a target price of $67.8.
Source: AAStocks Financial News
Citigroup expressed that, after tracking relatively weak performance from over 1H, the cement sector has been again included in the top pick list last month.
The broker contended that the cement shares are believed to continue outperforming the market over 2H and that now is the optimal timing for investors to purchase.
Among the building material stocks, Citigroup chose the followings as the top picks: CNBM (03323.HK), CONCH CEMENT, CHALCO (02600.HK), ANGANG STEEL (00347.HK), ZIJIN MINING (02899.HK).
C Suisse Cuts CONCH CEMENT (00914.HK) TP to $60; Rated Outperform
CONCH CEMENT is favored mainly due to three near-term factors, namely the upcoming appointment of the new chairman, which is projected to bring new stimulus to the earnings performance in 2H, the management share incentive plan and the previously announced RMB20 billion investment in new energy segment over the 14th FYP period, Citigroup added.
The broker rated CONCH CEMENT at Buy with a target price of $67.8.
Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 118900
- Joined: Wed May 07, 2008 9:28 am
Re: Cement Producers
by winston » Wed Sep 08, 2021 9:42 am
China Cement Sector Cement price in South and East China continues to trend up
Another round of price hikes in South and East China amid improving supply-demand dynamics.
On 7-Sep, cement manufacturers in Guangdong and Anhui provinces announced they would raise cement and clinker prices by ~Rmb20-50/t, supported by picking up of demand.
In South China, power rationing continues to impact cement supply, and we expect price to further trend up amid trending up demand and lower inventory.
Cement prices in South and East China went up ~10% over past month. Inventory in these two areas was down by 28 pp/11 pp MoM to 55%/52%.
Thanks to improving demand, shipment improved as well, especially in East China. Average shipment arrived at 91.3% (+32 pp MoM)/83.3% (+5.0 pp MoM) in South and East China.
Supply disruption from power shortage to remain intact in 4Q21.
With reviving demand, we expect to see another 3-4 rounds of price hikes in Eastern and Southern China, amounting to Rmb100-150/t in total, which would easily offset the rising cost from elevated coal price.
Our top picks are Anhui Conch and CR Cement. We expect improving GP/t to further support their earnings.
Source: CS
Another round of price hikes in South and East China amid improving supply-demand dynamics.
On 7-Sep, cement manufacturers in Guangdong and Anhui provinces announced they would raise cement and clinker prices by ~Rmb20-50/t, supported by picking up of demand.
In South China, power rationing continues to impact cement supply, and we expect price to further trend up amid trending up demand and lower inventory.
Cement prices in South and East China went up ~10% over past month. Inventory in these two areas was down by 28 pp/11 pp MoM to 55%/52%.
Thanks to improving demand, shipment improved as well, especially in East China. Average shipment arrived at 91.3% (+32 pp MoM)/83.3% (+5.0 pp MoM) in South and East China.
Supply disruption from power shortage to remain intact in 4Q21.
With reviving demand, we expect to see another 3-4 rounds of price hikes in Eastern and Southern China, amounting to Rmb100-150/t in total, which would easily offset the rising cost from elevated coal price.
Our top picks are Anhui Conch and CR Cement. We expect improving GP/t to further support their earnings.
Source: CS
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 118900
- Joined: Wed May 07, 2008 9:28 am
Re: Cement Producers
by winston » Tue May 31, 2022 11:45 am
CLSA Downgrades CONCH CEMENT, CNBM to Underperform, CHINARES CEMENT to Outperform
China's cement sales volume was forecast to fall by 12% YoY in May 2022, due to supply chain disruptions, weakened demand and unfavorable weather conditions, reported CLSA.
As the leverage controls remain unchanged, the demand recovery will likely be limited, the broker added.
The coal prices will likely remain at an elevated level and cost-pass-through might be relatively more difficult amid the tepid demand.
CLSA remained cautious towards Chinese cement stocks, expecting the gross profit of the sector to potentially further contract, which may trigger further downward valuation re-rating.
The broker downgraded CONCH CEMENT and CNBM (03323.HK) from Outperform to Underperform, with a target price of $40 and $9.8, respectively.
CHINARES CEMENT (01313.HK) was likewise downgraded from Buy to Outperform, with a target price of $6.9.
Source: AAStocks Financial News
China's cement sales volume was forecast to fall by 12% YoY in May 2022, due to supply chain disruptions, weakened demand and unfavorable weather conditions, reported CLSA.
As the leverage controls remain unchanged, the demand recovery will likely be limited, the broker added.
The coal prices will likely remain at an elevated level and cost-pass-through might be relatively more difficult amid the tepid demand.
CLSA remained cautious towards Chinese cement stocks, expecting the gross profit of the sector to potentially further contract, which may trigger further downward valuation re-rating.
The broker downgraded CONCH CEMENT and CNBM (03323.HK) from Outperform to Underperform, with a target price of $40 and $9.8, respectively.
CHINARES CEMENT (01313.HK) was likewise downgraded from Buy to Outperform, with a target price of $6.9.
Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
-
winston - Billionaire Boss
- Posts: 118900
- Joined: Wed May 07, 2008 9:28 am
Return to Business Sectors & Industries
Who is online
Users browsing this forum: No registered users and 3 guests