[ET Net News Agency, 24 August 2020] Goldman Sachs raised its target price for China
Resources Cement (CRC)(01313) to HK$9.8 from HK$9.3 and maintained its "neutral" rating.
The research house said CRC's 1H result was 18% higher than Goldman's estimates, mostly
due to lower SG&A. The company proposed an interim dividend of HK$0.275/sh, implying a 46%
payout ratio, versus 48% in 1H 2019.
SG&A was 10% lower, or 15% lower than Goldman's expectations. Goldman estimated most was
driven by the one-off government supportive policy during the COVID-19 disruption,
including waiving fees of tolled roads for trucking transport and social security
payments. It expects most SG&A to revert to the normal level in 2H. Goldman raised its
earnings by 18% for 2020 and by 5% for 2021. (KL)