[ET Net News Agency, 25 October 2018] HSBC Global Research lowered its target price for
Anhui Conch Cement (00914) to HK$58 from HK$62, and maintained its "buy" rating.
The research house said Conch's 3Q earnings of RMB7.8bn beat its estimate by 6%.
Citing its latest channel check trip with industry experts and listed cement and
construction companies earlier this month, HSBC believes the central government policy to
increase infrastructure investment is in motion.
While investors may be concerned with local government debt levels, HSBC thinks the
central government is likely to assist directly through transfer payments to the local
government. Given the lag time between funding and execution, HSBC believes meaningful
improvement in infrastructure demand will kick in post CNY next year. (KL)