Anhui Conch Cement Co. Ltd.

  • Ticker0914
  • ISINCNE1000001W2
  • ExchangeHong Kong Stock Exchange
  • SectorConstruction & Materials
  • CountryChina

ANHUI CONCH CEMENT sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of ANHUI CONCH CEMENT (HK), a company active in the Building Materials & Fixtures industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 8, 2021, the closing price was HKD 52.55 and its potential was estimated at HKD 56.95.

UOB
Neo Chen Wentao ...
  • Sandra Huang Jieqiong
  • Ziv Ang Sze Champ

China Cement : Weaker-than-expected recovery in 4Q20; Downgrade to UNDERWEIGHT

The average cement price fell 3.2% yoy in 4Q20 due to a high base. Margins were also squeezed due to coal price hikes. Cement production rose 1.2% in 11M20, while inventory level was healthy at 51.6% at end-20. We turn cautious on the cement market for 2021 and maintain UNDERWEIGHT. We prefer Anhui Conch and CR Cement for their earnings visibility and sustained high dividends.

UOB
Neo Chen Wentao ...
  • Sandra Huang Jieqiong
  • Ziv Ang Sze Champ

China Cement : Weekly: Price recovery continues While coal cost hike weighs on margins.

The upward momentum in cement prices since the end of the rainy season remains intact with national ASP edging up 3.4%. The eastern and southern regions led the prices rally with respective increases of 7.4% and 2.4%. However, recent stronger-thanexpected domestic coal prices may weigh on cement gross margin in 4Q20. The sizeable number of infrastructure projects commencing construction in 4Q20 is expected to serve as a key catalyst for the cement sector. Maintain OVERWEIGHT. Top picks: CR Cement, Anhui Couch.

UOB
Neo Chen Wentao ...
  • Sandra Huang Jieqiong
  • Ziv Ang Sze Champ

China Cement : Weekly: All set for a cement price rally.

The uptrend in cement prices since the end of the rainy season continues with the national average cement price rising 2% to Rmb422.05/tonne. National cement storage capacity ratio has dropped 14ppt since 24 July. National cement production as of July was still 3.5% lower yoy. Entering the peak season for construction activities coupled with the sizeable number of infrastructure projects in the pipeline, cement prices are expected to rally in the coming months. Maintain OVERWEIGHT.

UOB
Neo Chen Wentao ...
  • Sandra Huang Jieqiong

Anhui Conch Cement Co (914 HK) : 1H20: Another solid set of results that beats expectation.

Anhui Conch posted a 5.26% yoy growth in 1H20 net profit to Rmb16.1b, beating our expectations. Despite the high base and COVID-19 outbreak in 1Q20, we saw strong recovery in 2Q20, supported by sales volumes spike and better-than-expected cost control. Steady margin performance was observed across key regions, and net cash position enhancement continues. Stay positive on the upcoming peak season. Maintain BUY, raise target price to HK$72.18.

Dave Nicoski ...
  • Ross LaDuke

Int'l Insights: EM Strategy

EM Outperforming; Favor EM over EAFE With many global markets crumbling last week, one might assume that EM would have underperformed -- but that is not what transpired. What we saw was a decline in the US dollar which, along with improving coronavirus metrics in China, led to EM outperformance. Reiterating our 12/20/19 EM Strategy, we continue to believe EM is a better place to be than EAFE, supported by new highs in the EM vs. EAFE ratio and our ongoing belief that the US dollar is likely not headed for meaningfully new highs in the near-term... see charts below. Below we highlight attrac...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

EM Remains In Favor; Shanghai Comp Breaking Out A weakening US dollar (DXY) continues to be a major tailwind for both EM equities and the commodity Sectors. Improving price and RS trends for these risk-on areas of the market are among the many characteristics consistent with historical bull markets. Therefore, we continue to label this a bull market and we believe global equities are still in the early innings of a broad-based advance. • EM Equities. Price action has remained weak for the US dollar (DXY), which has been great news for EM equities. As outlined in our 12/19/19 Int'l Compass ...

UOB
Neo Chen Wentao ...
  • Sandra Huang Jieqiong
  • Ziv Ang Sze Champ

China Cement : Weaker-than-expected recovery in 4Q20; Downgrade to UNDERWEIGHT

The average cement price fell 3.2% yoy in 4Q20 due to a high base. Margins were also squeezed due to coal price hikes. Cement production rose 1.2% in 11M20, while inventory level was healthy at 51.6% at end-20. We turn cautious on the cement market for 2021 and maintain UNDERWEIGHT. We prefer Anhui Conch and CR Cement for their earnings visibility and sustained high dividends.

UOB
Neo Chen Wentao ...
  • Sandra Huang Jieqiong
  • Ziv Ang Sze Champ

China Cement : Weekly: Price recovery continues While coal cost hike weighs on margins.

The upward momentum in cement prices since the end of the rainy season remains intact with national ASP edging up 3.4%. The eastern and southern regions led the prices rally with respective increases of 7.4% and 2.4%. However, recent stronger-thanexpected domestic coal prices may weigh on cement gross margin in 4Q20. The sizeable number of infrastructure projects commencing construction in 4Q20 is expected to serve as a key catalyst for the cement sector. Maintain OVERWEIGHT. Top picks: CR Cement, Anhui Couch.

UOB
Neo Chen Wentao ...
  • Sandra Huang Jieqiong
  • Ziv Ang Sze Champ

China Cement : Weekly: All set for a cement price rally.

The uptrend in cement prices since the end of the rainy season continues with the national average cement price rising 2% to Rmb422.05/tonne. National cement storage capacity ratio has dropped 14ppt since 24 July. National cement production as of July was still 3.5% lower yoy. Entering the peak season for construction activities coupled with the sizeable number of infrastructure projects in the pipeline, cement prices are expected to rally in the coming months. Maintain OVERWEIGHT.

UOB
Neo Chen Wentao ...
  • Sandra Huang Jieqiong

Anhui Conch Cement Co (914 HK) : 1H20: Another solid set of results that beats expectation.

Anhui Conch posted a 5.26% yoy growth in 1H20 net profit to Rmb16.1b, beating our expectations. Despite the high base and COVID-19 outbreak in 1Q20, we saw strong recovery in 2Q20, supported by sales volumes spike and better-than-expected cost control. Steady margin performance was observed across key regions, and net cash position enhancement continues. Stay positive on the upcoming peak season. Maintain BUY, raise target price to HK$72.18.

UOB
Carol Dou Xiao Qin ...
  • Cherrie Tan Yue
  • Johnny Yum Chung Man
  • Julia Pan Mengyao
  • Ken Lee
  • Michael Cheung Ho Bun
  • Neo Chen Wentao
  • Robin Yuen
  • Sandra Huang Jieqiong
  • Tham Mun Hon

Greater China Daily: Monday, August 24, 2020

KEY HIGHLIGHTS Strategy Who’s Tougher On China? Trump or Biden? While there are some differences in their approach on China, China is unlikely to get a reprieve. Sector Consumer Bi-weekly. Results Anhui Conch Cement Co (914 HK/BUY/HK$57.40/Target: HK$72.18) 1H20: Another solid set of results that beats expectation. Brilliance Auto (1114 HK/BUY/HK$7.32/Target: HK$14.00) 1H20: Net profit grows 25% yoy, better than estimates; we raise target price to HK$14.00. Changsha Zoomlion Heavy Industry (1157 HK/BUY/HK$8.08/Target: HK$9.80) 1H20: Interim dividend a positive surprise, strong 3Q20 ...

UOB
Johnny Yum Chung Man ...
  • Joyce Chan Pui Lai
  • Ken Lee
  • Neo Chen Wentao
  • Sandra Huang Jieqiong

Greater China Daily: Wednesday, March, 27, 2019

KEY HIGHLIGHTS CHINA Results Anhui Conch Cement (914 HK/BUY/HK$44.40/Target: HK$54.50) 2018: Strong performance, in line. A good start to 2019. Brilliance Auto (1114 HK/SELL/HK$7.42/Target: HK$5.00) 2018: Profit misses estimate on provisions for proprietary brand. China Meidong Auto Holdings (1268 HK/HOLD/HK$3.81/Target: HK$4.00) 2018: Core net profit up 24.5% yoy, in line. China Yongda Auto Services Holdings (3669 HK/HOLD/HK$6.16/Target: HK$6.00) 2018: Net profit declines 17% yoy, above our estimate but below consensus; upgrade to HOLD. TRADERS’ CORNER SmarTone Telecom (315 HK): T...

ANHUI CONCH CEMENT sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of ANHUI CONCH CEMENT (HK), a company active in the Building Materials & Fixtures industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 8, 2021, the closing price was HKD 52.55 and its potential was estimated at HKD 56.95.

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