[ET Net News Agency, 27 April 2020] Huatai Research raised its target price for China
Resources Cement (CRC)(01313) to HK$10.7 from HK$8.9 and maintained its "hold" rating.
The research house said CRC's 1Q results decline due to lower sales volume caused by
COVID-19. Demand recovery accelerated after Tomb-Sweeping Day, indicating a strong demand
outlook for 2Q, but Huatai thinks the sustainability of such strong momentum in 2H will
depend on the level of property sales and private investment.
Huatai raised its GP per tonne estimates to factor in stronger-than-expected demand
recovery in South China in 2Q. It also raised its 2020/21 net profit estimates by 20%/13%.
(KL)