Thanks to the cement price hike in China, TCC International Holding Co, part of the TCC Group, expects net profit margin increase by 10% and shipments grow 40% in the second quarter of this year. TCC International is expected to ship 10Mt of cement in the second quarter of this year, hitting a historic high.
Domestic cement price will go up by 10% to between NT$2000 and NT$2,300/t (US$69 and US$79) by the end of this year. Institutional investors believed TCC Group, Taiwan’s largest producer of cement, will see better operating performance, both in core and non-core businesses, this year from last year’s level.
TCC International is estimated to grab net earnings of between CNY46-47/t in the first quarter of this year. Thanks to the rise in production equipment utilisation rate, the company’s net earnings may climb to CNY50/t in the second quarter of this year, helping it to achieve an expected CNY450m in the second quarter.