Goldman cuts TCC International target prices

Goldman cuts TCC International target prices
Published: 03 October 2011

Goldman Sachs has lowered its target price for TCC International to HK$4.65 from HK$6.25, and maintained its "buy" rating.

Given the likely macro/demand weakness, the research house expects utilisation reduction to support cement prices.

Goldman believes the rapidly slowing property market is likely to translate into slower construction starts.

It prefers Asia Cement for its higher exposure to Central/Western China versus TCC Int’l (100% of sales for ACC versus 62% for TCC Int’l in 2012) as potential stimulus measures by Chinese government would likely skew towards spending in Middle/Western China.