[ET Net News Agency, 19 April 2018] Credit Suisse lifted its target price for Anhui
Conch Cement (00914) to HK$55 from HK$42, and reiterated its "outperform" rating.
The research house revised up Anhui Conch's 2018/19 earnings by 54/42%. It expects
above-2017 average construction density - leading to higher daily cement consumption in 2Q
and 3Q. Credit Suisse forecast total cement demand to grow by 0.2% YoY in 2018, driven by
accelerating property construction, more than offset by decelerating infrastructure
investment. It sees limited new capacity addition.
Credit Suisse witnessed rising production vs subdued demand in 1Q, resulting in higher
inventory and lower prices. In 2Q, it forecast demand to rise vs production flattish,
resulting in lower inventory and higher prices for cement. (KL)