[ET Net News Agency, 27 October 2020] Huatai Research lifted its target price for China
Resources Cement (CRC) (01313) to HK$11.9 from HK$11.6 and upgraded its rating to "buy"
from "hold".
The research house said CRC reported stronger 3Q results than Huatai expected> It said
that CRC's share price has underperformed the HSCEI by 11.2% since September, which Huatai
attributed to investor concerns about potential government policy tightening for the
property sector and a lack of cement price hikes in South China in September.
However, Huatai believes the stock price correction has been overdone as underlying
demand remains healthy and the first round of cement price hikes in South China in 2H, of
RMB30/ton, was announced last week. It revised up its 2020/21 net profit forecasts by
14%/13%. (KL)