Credit Suisse raises Asia Cement to outperform

Credit Suisse raises Asia Cement to outperform
Published: 15 April 2011

Credit Suisse upgrades Taiwan-based producer, Asia Cement to Outperform from Neutral and boosts its target price to NT$43.10 from NT$29.60 on strong profit outlook in China cement sales. It also notes returns from equity investment in Far East New Century should help offset declines in U-Ming Marine. The house adds slowing growth of new capacity in China helps support cement prices; it forecasts Asia Cement’s EBITDA in China to rise 96% in 2011, and by another 11% in 2012, after falling around 30% in 2010.