UOB keeps Sinoma at buy, booming Xinjiang demand, China
UOB KayHian keeps Sinoma at Buy with a target price of HK$9.50, citing "booming cement demand in Xinjiang". It says cement prices in southern Xinjiang have picked up by CNY60-CNY80/t to CNY320-CNY340/t because of accelerating construction activity, while northern Xinjiang’s cement prices remain stable.
The house adds that contract prices for late-April rose by CNY20-CNY30/t, and expects that once the market moves into peak season, cement prices may shoot up CNY100/t, ahead of cement prices in the eastern region.
UOB says that as Xinjiang is in northern China, the construction period for each year lasts for five months because of the cold weather; "the impending warm weather should drive cement prices in the entire Xinjiang region."
Published under Cement News
