Emerging markets to support Sinoma’s earnings - UOBKH

Emerging markets to support Sinoma’s earnings - UOBKH
Published: 11 February 2011

Analysts at UOB KayHian says Sinoma is not a pure cement player, noting that cement engineering accounts for 58% of its revenue; it says Sinoma is expanding into new businesses through JVs and strategic alliances to diversify its product mix. "Despite the slowdown in new orders locally due to capacity constraints, we believe emerging markets in the Middle East, Southern Asia and Eastern Europe will continue to contribute to Sinoma’s bottom line." It tips share price catalysts include improved sentiment after Lunar New Year, a solid recovery in cement prices and more overseas projects secured.