HSBC Global Research said several Chinese cement companies have announced positive profit alerts recently, but the research house believes share prices have already factored in the good 1H results.
HSBC said property construction activity could slow more rapidly over the coming months. It believes there is rising concern over the potential for a large decline in cement demand going forward.
HSBC said a slowdown in property new starts takes at least six months to flow through
into cement demand, but it believes the current balance of supply and demand in the cement market should provide some buffer against any potential drop in demand.
HSBC revised its target prices and ratings for as follows:
Name Target Price Rating
---------------------------------------------------------
Anhui Conch (00914) HK$55.0 (unchanged) Buy (unchanged)
CR Cement (01313) HK$10.5 to HK$10.0 Buy (unchanged)
CNBM (03323) HK$7.0 (unchanged) Buy to Hold
BBMG (02009) HK$2.5 to HK$2.6 Hold to Hold
ACC (00743) HK$11.5 to HK$13.0 Buy to Hold
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