[ET Net News Agency, 6 December 2019] DBS Group Research raised its target price for
Anhui Conch Cement (00914) to HK$55 from HK$48 and maintained its "buy" rating.
The research house said Conch's share price has surged 16% since its upbeat 3Q results,
but DBS still sees further share upside, given (1) solid sale volume expansion prospects,
(2) unit cement gross profit is expected to hover at a high level, and (3) Conch's leading
position backed by its upstream expansion plan in aggregates business.
DBS assumed higher-than-market unit cement gross profit for 2019 at RMB165/tonne, up
from RMB153/tonne previously, versus RMB155/tonne in FY2018. (KL)