Cement Producers

Re: Cement Producers

Postby winston » Fri Jun 06, 2014 2:34 pm

1Q China cement production up 4% yoy
Apr 30, 2014

National Development and Reform Commission announced in the first quarter, the national cement production rose 4% yearly, down 4.2 ppt yearly, to 44,728 trillion tons. The flat glass production rose 1.7%, down 6.7 ppt, to 20,149 trillion weight cases.

In March, the average cement ex-factory price of key building material companies equaled RMB348/ton, down RMB5.9/ton monthly, or up RMB13.3/ton yearly; average price of flat glass equaled RMB64.4/weight case, up RMB1 monthly, or up RMB2.1 yearly.

As at the end of March, the key building material enterprises' cement inventory fell 0.9% yearly to 16.65 million tons; flat glass inventory rose 15.1% to 55.37 million weight cases.


Source: AAStocks Financial News
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Re: Cement Producers

Postby winston » Fri Jun 13, 2014 11:18 am

<Research Report>Citi downgrades ratings of ANHUI CONCH, CHINARES CEMENT on negative view toward cement stocks
Jun 6, 2014


According to the latest research report by Citibank, the market projected cement price will pick up in 4Q 2014 or in 2H, particularly cement makers in eastern China.

The bank commented the projection was too optimistic, since impacts caused by the slowdown in the real property market may be greater than expected.

If the downtrend of contracted sold area sustains, demands for cement may even become negative.

2014-2015 EPS estimate of ANHUI CONCH (00914.HK) was lowered by 4%, and rating was downgraded from Buy to Neutral. Target price was reduced from $35 to $30.

For CHINARES CEMENT (01313.HK), 2014-2015 EPS forecast was trimmed by 8%, and rating was downgraded from Neutral to Sell. Target price was slashed from $6.3 to $4.5.


Source: AAStocks Financial News
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Re: Cement Producers

Postby winston » Fri Jun 13, 2014 11:24 am

<Research Report>Deutsche's future sales forecast for Chinese cement stocks
May 27, 2014

Deutsche Bank listed the future sales volume forecast for Chinese cement stocks:

Stock / 2013 sales volume (tons) / /2014 sales volume (tons) / Estimated 2014-2016 CAGR
ANHUI CONCH (00914.HK) / 228 million / 256 million / 11%
CNBM (03323.HK) / 283 million / 317 million / 7%
CHINARES CEMENT (01313.HK) / 74.9 million / 77.4 million / 10%
BBMG (02009.HK) / 38.9 million / 42.8 million / 4%
SHANSHUI CEMENT (00691.HK) / 62.6 million / 68.1 million / 8%
SINOMA (01893.HK) / 84.7 million / 88.9 million / 4%
WESTCHINACEMENT (02233.HK) / 18.2 million / 20.7 million / 8%


Source: AAStocks Financial News
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Re: Cement Producers

Postby winston » Thu Oct 09, 2014 12:55 pm

M Stanley latest ratings & target prices for CN cement stocks

In the research report, Morgan Stanley updated its investment ratings and target prices for Chinese cement stocks as follows:

Stock / Investment Rating / Target Price (HK$)
ANHUI CONCH (00914.HK) +0.400 (+1.610%) Short selling $3.11M; Ratio 1.891% / Underweight / 25
CNBM (03323.HK) -0.100 (-1.387%) Short selling $34.79M; Ratio 29.451% / Equalweight / 7.4 -> 7
SHANSHUI CEMENT (00691.HK) +0.020 (+0.730%) Short selling $2.49M; Ratio 37.941% / Underweight / 2.3
CHINARES CEMENT (01313.HK) +0.030 (+0.561%) Short selling $636.04K; Ratio 7.051% / Underweight / 4.9
BBMG (02009.HK) +0.010 (+0.181%) Short selling $1.11M; Ratio 13.240% / Equalweight / 5.9
SINOMA (01893.HK) 0.000 (0.000%) Short selling $177.00K; Ratio 11.091% / Underweight / 1.36
WESTCHINACEMENT (02233.HK) 0.000 (0.000%) Short selling $21.56K; Ratio 0.224% / Overweight / 0.93

Source: AAStocks Financial News
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Re: Cement Producers

Postby winston » Thu Apr 23, 2015 1:35 pm

<Research Report>Deutsche latest ratings & TPs for cement shares (Table)

Deutsche Bank's latest investment ratings and target price for cement shares are listed out as follows:

Stock / Investment Rating / Target Price (HK$)
ANHUI CONCH (00914.HK) / Buy / 31.05->39.01
CONCH VENTURE (00586.HK) / Buy / 21.36->25.16
WESTCHINACEMENT (02233.HK) / Buy / 1.5->2.06
CHINARES CEMENT (01313.HK) / Buy / 5.15->5.97
CNBM (03323.HK) / Sell / 5.75->6.86
SHANSHUI CEMENT (00691.HK) / Hold / 5.02->5.26
SINOMA (01893.HK) / Hold->Sell / 1.96->1.97
BBMG (02009.HK) / Hold / 7.03->7.83


Source: AAStocks Financial News
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Re: Cement Producers

Postby winston » Mon May 04, 2015 3:39 pm

not vested

<Research Report>Deutsche latest ratings & TPs for cement shares (Table)

Deutsche Bank's latest investment ratings and target price for cement shares are listed out as follows:

Stock / Investment Rating / Target Price (HK$)
ANHUI CONCH (00914.HK) / Buy / 31.05->39.01
CONCH VENTURE (00586.HK) / Buy / 21.36->25.16
WESTCHINACEMENT (02233.HK) / Buy / 1.5->2.06
CHINARES CEMENT (01313.HK) / Buy / 5.15->5.97
CNBM (03323.HK) / Sell / 5.75->6.86
SHANSHUI CEMENT (00691.HK) / Hold / 5.02->5.26
SINOMA (01893.HK) / Hold->Sell / 1.96->1.97
BBMG (02009.HK) / Hold / 7.03->7.83

Source: AAStocks Financial News
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Re: Cement Producers

Postby winston » Mon May 04, 2015 3:41 pm

<Research Report>Deutsche raises TPs for cement stocks; expects to reach cyclical bottom in 1Q15

Deutsche Bank, in its report, stated that the broker hosted an investor trip in mid-April and found that the degree of decline in cement demand has exceeded their expectations.

Both the sales and prices of cement plunged year-on-year.

Credit has tightened for downstream cement enterprises as collections prior to the Chinese New Year have been extremely poor, delaying construction starts for both property and infrastructure.

The broker expected China has to introduce significant easing in the coming few months.

Deutsche Bank maintained a positive outlook to the industry's recover in 2H15 and 2016 and believed the correction in the coming few months will provide attractive Buy chances.

The broker considered the industry will reach its cyclical bottom in the first quarter while the demand will recover in the second half of the year.

Meanwhile, the broker lifted the target prices for cement stocks by 17%. ANHUI CONCH (00914.HK) and CONCH VENTURE (00586.HK) are the broker's top picks.

WESTCHINACEMENT (02233.HK) and TCC INT'L HOLD (01136.HK) are the preferred consolidation targets.

CNBM (03323.HK) is the least preferred one.


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Re: Cement Producers

Postby winston » Fri Jun 26, 2015 1:31 pm

USB's Ratings & TPs for Cement Stocks (Table)

Stock / Rating / Target Price
BBMG (02009.HK) / Buy / HK$12
CHINARES CEMENT (01313.HK) / Neutral / HK$5.3->4.8
ANHUI CONCH (00914.HK) / Buy->Sell / HK$32->25
Anhui Conch Cement (600585.SH) / Buy->Sell / RMB26.35->19
WESTCHINACEMENT (02233.HK) / Sell / HK$1
Huaxin Cement (600801.SH) / Buy->Sell / RMB11.9->9

Source: AAStocks Financial News
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Re: Cement Producers

Postby winston » Wed Aug 19, 2015 9:42 am

Cement - China

No Sure Sign Of A Turnaround In Cement Demand, More Effort Needed To Tackle Oversupply

Property construction will remain a lacklustre driver of cement demand in China due to the country’s high housing inventory, while supply constraints are not sufficient to offset the demand slowdown in 2015.

Despite the sector’s undemanding valuations, we initiate coverage on China’s cement sector with UNDERWEIGHT in the light of a lack of catalysts for a sector turnaround. Our key pick is BBMG.

INVESTMENT HIGHLIGHTS

Cement demand from property construction could have peaked despite possible rebound in property new starts in 4Q15. We expect the property sales improvement since Mar 15 to moderately speed up property new construction in 4Q15 from the very low base of a 17% contraction in 7M15 as property new starts normally lag property sales by 2-3 quarters.

Nevertheless, we are not convinced that there will be another round of property construction upcycle. Instead, we think China’s property new construction cycle could have peaked in 2013 due to the high housing inventory in lower-tier cities.

We still expect property new starts to decline 11% in 2015, a major drag on China’s cement demand this year. We expect China’s cement production to fall 3.5% in 2015 and the industry’s sales revenue to shrink by over 10% on cement price weakness this year.


More effort needed to reduce excess supply. Despite a slowdown in new supply addition in the cement sector over the past couple years due to government curbs, elimination of obsolete capacity declined from the peak of 220m tonnes in 2012 to 70m-
80m tonnes in each of 2013-14 and possibly by another 50m tonnes in 2015, leading to only a minor net decline in capacity this year.

Although the Chinese government has implemented higher standards for environmental protection, has shut down small plants
with a daily capacity of below 2,000 tonnes each and will eliminate the PC32.5 grade cement standard by Dec 15, we believe the removal of obsolete capacity is a long-term process and more effort is needed to reduce supply.


Industry consolidation and M&As to ramp up. We expect leading cement companies, such as Anhui Conch Cement Co, to gain more market share amid the industry weakness. We cannot ignore the possibility of Anhui Conch Cement Co increasing its stake in West China Cement (WCC) or even becoming its largest shareholder.

On the other hand, it would take time for the industry concentration rate (top 10 players) to rise from 38% currently to 50-60% before leading players can strengthen their pricing power.


A challenging year for earnings. Despite a potential mild cement price rebound in 4Q15, we project overall cement ASP to drop about 11% in 2015 and expect cement companies’ earnings to fall 30-60% in FY15.


Accumulate resilient regional players. The sector is trading at an undemanding valuation of 1.0x FY15F P/B and 14.2x FY15F PE, but we think the sector still lacks catalysts for a turnaround.

We like individual regional players that have resilient exposure or are M&A targets. BBMG Corporation is a key beneficiary of the Beijing-Tianjin-Hebei integration plan while its property business exposure will help offset the weakness of the cement business.

Source: UOBKH
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Re: Cement Producers

Postby winston » Thu Jan 07, 2016 2:20 pm

<Research Report>C Suisse' Latest Ratings, TPs on Cement Stocks (Table)

Credit Suisse, in its report, listed its latest investment ratings and target prices on cement stocks:

Stock / Rating / Target Price

ANHUI CONCH (00914.HK) / Outperform / 28
CNBM (03323.HK) / Neutral / 3.7
CHINARES CEMENT (01313.HK) / Outperform / 3
SHANSHUI CEMENT (00691.HK) / Underperform / 1.8
SINOMA (01893.HK) / Neutral / 1.8
TCC INT'L HOLD (01136.HK) / Neutral / 1.4
BBMG (02009.HK) / Outperform / 11.5
WESTCHINACEMENT (02233.HK) / Outperform / 2

Source: AAStocks Financial News
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