Research Report>ANHUI CONCH (00914.HK) rated Neutral, TP raised to $28.9 by Citi
ANHUI CONCH (00914.HK) sold 53 million tons of cement and clinker in the third quarter, up 33% year-on-year, compared with industry average of 7% growth.
The new production lines launched in the second quarter were fully operated in the third quarter, thereby boosting sales.
The average selling price dropped 31% year-on-year to RMB219 per ton in the third quarter.
ANHUI CONCH secured market share from high-cost peers, Citigroup said, believing the cement price hike is seasonal rather than structural.
The broker expects cement price and sales to pick up in the fourth quarter with gross profit ascending to RMB70-75 per ton.
ANHUI CONCH is rated Neutral with target price up from $22.1 to $28.9.
Source: AAStocks Financial News