Daiwa cuts West China Cement target

Daiwa cuts West China Cement target
Published: 27 June 2011

Daiwa cuts its target for West China Cement to HK$3.25 from HK$3.45, after it cuts its 2011 and 2012 EPS forecasts by 7% and 6% respectively, mainly to reflect weaker profit margins in Shaanxi; it says competition in the province seems to be intensifying. "We reiterate our positive view of the sector and recommend stocks that we think have stronger earnings growth potential and better geographical exposure than WCC."