Cement Producers

Re: Cement Producers

Postby winston » Tue Jan 26, 2016 7:17 am

Hard days for China's cement makers

The state-owned parent firms of cement producers China National Materials Co (1893) and China National Building Material Co (3323) plan a "strategic reorganization," the two listed companies said in filings to the stock exchange yesterday.

They said the proposal has not yet been finalized, but it does not involve any material assets.

Both of the cement makers saw falls of more than 10 percent in their revenues for the first nine months of 2015 compared with the previous year.

This came as a slowdown in construction hurt the cement industry, which is wrestling with an overcapacity problem.

Real estate investment also grew last month at its slowest pace 1 percent year-on-year since February 2009, data from the National Bureau of Statistics shows.

New housing starts declined 14 percent in December from a year earlier as developers tried to sell off bloated inventories of unsold homes. The overall inventory floor area was 15.6 percent higher than 12 months previously.

The corrective action comes after Premier Li Keqiang backed deeper cuts to reduce capacity amid supply-side reform.

China aims to shut off from 100 million to 150 million tonnes of steel capacity and halt approvals of new coal mines as it tackles oversupply from heavy industry.

Source: AGENCIES
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Re: Cement Producers

Postby winston » Sat Mar 05, 2016 4:29 pm

BofAML Expects Cement Prices to Bottom Out, Recommends to Buy ANHUI CONCH, BBMG

Bank of America Merrill Lynch, in its report, remained positive on mainland cement industry, considering the industry has bottomed out.

Its top picks are ANHUI CONCH (00914.HK) +1.340 (+7.469%) Short selling $195.10M; Ratio 33.338% and BBMG (02009.HK) +0.250 (+5.030%) Short selling $6.93M; Ratio 6.150% .

The research house foresaw cement prices of the eastern and northern regions to bottom out and rise in the second quarter, despite an assumption of a negative growth in demand.

It expected near-term catalysts of further prices hike as entering into peak season.

Bank of America Merrill Lynch's ratings and target prices (table)
Stock/Rating/Target Price (HK$)

ANHUI CONCH(00914.HK) +1.340 (+7.469%) Short selling $195.10M; Ratio 33.338% / Buy/ 24.0
BBMG(02009.HK) +0.250 (+5.030%) Short selling $6.93M; Ratio 6.150% / Buy/7.0
CNBM(3323.HK)/ Neutral/4.2
CHINARES CEMENT(01313.HK) +0.150 (+6.579%) Short selling $6.55M; Ratio 8.220% / Underperform/2.5
CONCH VENTURE(00586.HK) +0.320 (+2.424%) Short selling $2.36M; Ratio 8.705% /Buy/20.0

Source: AAStocks Financial News
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Re: Cement Producers

Postby winston » Tue Mar 08, 2016 2:32 pm

Valuation and our preferred picks; risks

We need to balance the issues of financial stress against government stimulus (i.e., fundamentals against market beta), in a period of depressed valuations and market volatility.

Our strategic view is to concentrate on privatization candidates (we upgrade CRC to Buy), pot’l M&A targets (WCC) and defensive
names with other earnings streams (BBMG and CV).

We downgrade CNBM to Sell given the recent rally in the share price.

Our TPs are derived based on P/E, cross checked by P/B and ROE.

Risks: changes to 32.5 grade cement removal.

Source: DB
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Re: Cement Producers

Postby winston » Wed Mar 09, 2016 1:31 pm

Why Goldman, Citigroup Hate Iron Ore But Love Cement

By Shuli Ren

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... ve-cement/
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Re: Cement Producers

Postby winston » Thu May 19, 2016 10:42 am

Cement - China

Positive Policy Impact From Supply-side Reform And Cement Standard Upgrade

The State Council’s policy guidelines to speed up supply-side reform and upgrade cement standards are positive to leading cement players.

The policy moves will increase the cement sector’s concentration rate while the potential cancellation of PC 32.5 grade cement will increase cement demand meaningfully.

Maintain OVERWEIGHT on the sector. Stock picks: Anhui Conch and CR Cement.

Source: UOBKH

https://research.uobkayhian.com/content ... 62490b36f3
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Re: Cement Producers

Postby winston » Thu Jun 02, 2016 6:31 am

Oversupply in China caused prices to fall 11 percent year-on-year.
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Indonesia

Postby behappyalways » Wed Jun 22, 2016 11:57 am

Indonesia’s Biggest Cement Firm Looks Offshore Amid Glut at Home
http://www.bloomberg.com/news/articles/ ... ut-at-home
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Re: Cement Producers

Postby winston » Thu Jul 14, 2016 1:39 pm

<Research Report>Deutsche Cuts Profit Forecast & TPs of Cement Stocks; Expects Interim Results Not to be Satisfactory

Deutsche Bank pointed out that China cement pricing bottomed out in 1Q16 but the 1H16 results will not shiny.

It believed median earnings will decline by 50% yearly.

The broker lowered the profit forecast of cement industry for 2016 by 2%-27%.

However, the broker considered the valuation of the segment as attractive.

It recommended to opt for companies which have not been affected by flooding and have better supply in their operation locations.

The broker preferred SINOMA (01893.HK), BBMG (02009.HK) and CHINARES CEMENT (01313.HK).

Source: AAStocks Financial News
Web Site: www.aastocks.com
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Re: Cement Producers

Postby winston » Tue Jul 19, 2016 10:33 am

Cement ‒ China

Robust Infrastructure Investment Growth And Resilient Property New Starts

Underpin Cement Demand Growth

National property new starts and infrastructure investment recorded robust double-digit growth in 1H16, which should drive moderate cement demand growth this year.

This, coupled with supply-side reform and ramp-up of M&As, should further enhance the sector’s demand and supply dynamics.

Cement players’ earnings bottomed out in 2Q16 while further cement price hikes in Sep-Nov 16 will serve as a catalyst.

Maintain OVERWEIGHT on the sector. Stock picks: Conch and CR Cement.

Source: UOB

https://research.uobkayhian.com/content ... 7a87414223
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Re: Cement Producers

Postby winston » Fri Jul 22, 2016 9:11 am

<Research Report>M Stanley Expects Cement Stocks 2H16 Results to Improve; Advises to Overweight ANHUI CONCH, CNBM

Morgan Stanley, in its report, said cement prices in China started from a historical trough at the beginning of 2016. The prices then moved differently from the normal seasonal pattern and have had a strong rally since April, together with a well-rounded demand recovery in March.

Prices are up 10% from year-to-date low to year-to-date high in June. However, the average cement price in China in 1H16 still dropped 14% yearly.

On average cement companies' ASP will further decline by 3-20% yearly and expect gross profit per ton to decline by 1-37% yearly, mainly due to cement price weakness in 1H16.

The broker expected ANHUI CONCH (00914.HK) EPS to drop by 32% yearly to RMB0.6 in 1H, and expect CNBM (03323.HK) to decline 43% yearly to RMB0.08. These two are relatively resilient among companies in the broker's coverage.

In terms of downside, the broker believed CHINARES CEMENT (01313.HK), Huaxin (600801.SS), WESTCHINACEMENT (02233.HK) and Jidong (000401.SZ) face more significant earnings pressure for the first half.

Among these, CR Cement, WCC and Jidong have issued profit warnings. The broker also expected CR Cement, Huaxin and Jidong to face higher risk of consensus downgrades after the result.

The broker recommended overweighting Anhui Conch, due to its cost advantage, defensive balance sheet and better outlook in operating regions, as well as CNBM.

Source: AAStocks Financial News
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