Cement Producers

[winston]

not vested

DJ MARKET TALK: China Cement Stocks Retreat; HSBC Prefers Anhui Conch

1422 [Dow Jones] China cement stocks fall mirroring the broader market, with sector leader Anhui Conch Cement (0914.HK) pulling back 2.1% to HK$20.90 after rallying 10.6% over the past four sessions; China National Building Material (3323.HK) is down 0.5% at HK$7.96.

HSBC says rainy weather is unfavourable to cement prices, and notes average selling prices fell another 9% and 4% in Eastern and Southern China respectively in July.

However, the house says cement demand in Eastern China has started to pick up gradually since May, and accelerating railway investment should lead to stronger momentum in 4Q12.

HSBC says Anhui Conch, which is on its Asia Super 10 portfolio stock, continues to gain market share from high-cost producers and remains its preferred play with a target price of HK$27.20.


Source: Dow Jones Newswire

[winston]

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NBS: cement production rises 6.1% YoY, to 191,170,000 tons in Jul

China's cement production rose 6.1% from a year ago to 191,170,000 tons in July, the National Bureau of Statistics reported.

In the first seven months, cement production jumped yearly by 5.3% to 1,183,030,000 tons.


Source: AAStocks Financial News

[winston]

not vested

China Cement

<Research Report>Cement industry has bottomed out, with ANHUI CONCH (00914.HK) as top pick - UBS

This is the second week of rebound in the national average cement price, UBS said in a report.

Due to the rising demand and lower inventory, the cement price in Hangzhou rose RMB20 per ton.

On back of insufficient supply while Yinde lifted price, the cement price in Guangdong saw an increase of RMB15/ton. Changsha saw a decline by RMB20/ton.

The cement production in August was 196 million tons, an increase of 8.7% year-on-year, or 2% month-on-month.

Cement market has been gradually entering the peak season. In Jiangxi, Hunan and Guangdong, the cement demand rebounded over 10% against the second quarter and July-August. Inventory level is also effectively decreased.

Positive macroeconomic signals including potential acceleration in railway investment, intensive approval of new subway and highway projects, indicated the government has begun to take action to strengthen the infrastructure investment. Meanwhile, the the property fixed asset investment growth rose to 15.6% from 15.4% in July.

UBS believes that in view of the two basic aspects (demand + price), and the market sentiment, the cement industry has bottomed out. The Bank looks forward to continued demand and price recovery over the next few months. The top pick in H-shares is ANHUI CONCH (00914.HK).

Source: AAStocks Financial News

[winston]

Cement price in Mainland China gradually climbing

From China Securities Journal, high-grade cement price in Mainland China climbed for the second week with the gains extended.

Last week, average price of high-grade cement was RMB332/ton, up 0.5% week-on-week. In the week before last, such average price added 0.1% week-on-week.

Except eastern and northwest regions, where operating rate increased, other regions saw operating rate decline.

According to industry analysis, cement market has yet to possess enough favorable factors for a recovery as there is tight capital in the downstream, coupled with excessive production capacity.

Source: AAStocks Financial News

[winston]

not vested

DJ MARKET TALK: UBS Tips China Cement Sector To Outperform Next 6 Mos

1453 [Dow Jones] UBS believes China cement demand has bottomed and cement inventories are falling; in addition, cement prices have picked up with the national average price rising for the past four weeks after declining for 21 weeks.

"We believe there will be more upside in 4Q12 based on an overlap of seasonal strengthen and a recovery in infrastructure spending."

The house says aggressive new capacity additions in the past five years have put pressure on China's cement market, but in the next two years, it believes cement demand will record high single-digit growth and that new capacity additions will "slow materially."

Hence, capacity utilization rate should improve and cement prices may stage a moderate recovery in 2013 and 2014.

"As the industry is turning around, we believe the sector will outperform in the next six months." Among H-shares, UBS' top picks are Anhui Conch Cement (0914.HK) and China Resources Cement (1313.HK).


Source: Dow Jones & Company, Inc.

[winston]

not vested

DJ MARKET TALK: Take Profit In China Cement Stocks -Credit Suisse

1114 [Dow Jones] Credit Suisse advises taking profits in China cement names after their recent rally.

"We think further price hikes will be challenging, in the context of industry overcapacity, the current silo inventory."

The house adds, comments from most cement producers suggest a seasonal demand pick-up, but meaningful improvement from infrastructure and property construction is absent.

"Our view on persistent depressed industry margin outlook, due to deteriorated oversupply, remains unchanged," CS says, noting sector names have rallied 20%-30% recently on the back of floored fundamentals in 3Q12, seasonal strength, and policy news flow.


Source: Dow Jones & Company, Inc.

[winston]

not vested

Cement price climbs for 3rd time in Sep as peak season for cement industry in south CN comes

From Mainland media, cement price in the south China has just climbed for the third time in September, marking the fading-away of the problem on excessive stock.

According to past experiences, the fourth quarter is the peak season for south China cement industry with quarterly demand accounting for more than one third of full-year demand.

It is said that the clinker inventories of leading cement firms in south China like CHINARES CEMENT (01313.HK), ANHUI CONCH (00914.HK) and TCC INT'L HOLD (01136.HK) has dropped to below 55% already.

Source; AAStocks Financial News

[winston]

CN cement production growth slows down to 6.7% during Q1-3 - NDRC

In the first three quarters, China's cement production jumped 6.7% year-on-year to 1,591,240,000 tons, growing at a pace 11.4% slower than a year ago, the National Development and Reform Commission reported.

Cement prices continued lower, while plate glass prices grew further.

In the first eight months, construction materials industry realized profit of RMB192.5 billion, down 9.7% year-on-year.

Source: AAStocks Financial News

[winston]

not vested

Citi advises investors to sell CNBM/CHINARES CEMENT on mkt response to better economic data disproportionate

Citigroup believes consumption will replace investment as economic drivers in China as the marco-economic data painted a brighter picture, while Chinese President Hu Jintao planned to boost GDP a double in the next ten years.

CNBM (03323.HK) was rated Sell with target set at $6;

CHINARES CEMENT (01313.HK) was rated Sell with target set at $3;

ANHUI CONCH (00914.HK) was rated Neutral with target set at $28.9;

ASIA CEMENT CH (00743.HK) was rated Neutral with target set at $3.27.

BBMG (02009.HK) and SINOMA (01893.HK) were rated Buy with target prices set at $8.7 and $3.53 respectively.

Source: AAStocks Financial News

[winston]

not vested

Cement stocks may enter new upswing - Francis Kwok

Francis Kwok, Marketing Director of Bright Smart Group, said Hang Seng Index will hit new high if it can break above the Nov 2 high 22,150.

Mainland property developers have been showing outstanding performance, said Kwok, who added Mainland banks are also turning stronger.

Home construction industry has quite bright a future, said Kwok, who thus believes demand for cement will increase. He thinks cement stocks may gradually enter a new upswing.

Source: AAStocks Financial News