[ET Net News Agency, 24 August 2020] Nomura raised its target price for Anhui Conch
Cement (00914) to HK$66.6 from HK$61.2 and maintained its "buy" rating.
The research house said Conch's 2Q net profit of CNY11.2bn was 20% ahead of Bloomberg
consensus. Although Conch's export shipment declined by 41% in 1H, the overseas gross
profit jumped by 150% to CNY1.1bn, representing 4.9% of total 1H gross profit.
Nomura increased its 2020 earnings forecasts by 3% as it raised its cement shipment
growth from 0% to 3% for 2020. Although the flooding around the Yangtze River Delta seems
to impact cement demand in July, Nomura expects strong pent-up demand in 4Q. (KL)