China Resources Cement positive guidance

China Resources Cement positive guidance
Published: 10 May 2011

China Resources Cement is up 3.3% at HK$7.54, after releasing positive guidance on its 1Q11 operating data. South China Research notes although 1Q is the low season for the cement industry, sales of China Resources Cement still rose 60% on-year, while its average cement price increased 15% on-year.

"The strong demand is expected to continue to be driven by commercial housing and affordable housing construction." According to the historical trend, 4Q cement average selling prices are normally 10%-25% higher than 1Q’s and therefore the house tips a strong uptrend for CRC’s prices ahead.