[ET Net News Agency, 24 March 2020] Goldman Sachs lowered its target price for Anhui
Conch Cement (00914) to HK$52.5 from HK$53 and maintained its "neutral" rating.
The research house said Conch's FY2019 recurring net profit of Rmb33.5bn was mostly in
line with Goldman's expectation. Operating cash flow remained solid at Rmb40.7bn. Free
cash flow was positive at Rmb25.3bn. The company maintained its net cash position, with
net cash reaching Rmb60.5bn or Rmb77.3bn balance in cash and equivalent.
Goldman expects Cement demand to decline by 1% in 2020, on the back of disruptions
caused by the coronavirus. Construction activities have been recovering and Goldman
expects that unit margin will remain lower in 1H but should improve in 2H. (KL)