Asia Cement upgraded to "buy"

Published 09 December 2011

UOB Kay Hian upgraded Asia Cement (00743) to "buy" from "hold" on a favourable regional turnaround story, and maintained its target price at HK$6.17.

The house believes downside risk on cement price in Sichuan should be limited given demand pick-up and peaking of new capacity. Sichuan accounts for 28% of Asia Cement’s total capacity.