Citigroup upgrades Anhui Conch to buy from hold

Citigroup upgrades Anhui Conch to buy from hold
Published: 11 January 2010

Citigroup upgrades Anhui Conch to Buy from Hold and raises target price to HK$61.88 from HK$55.94. Says stock is top pick in sector on consolidation theme. Adds stock operates in most of provinces in which cement capacity is likely to get consolidated.

Tips Fujian, Shandong, Guangdong, Sichuan, Ningxia as provinces most likely facing consolidation in their cement industries. Notes stock has underperformed recently, reflecting market’s worry over its growth model, rising coal cost.

"We believe the concerns have been soothed following recent industry M&A deals and the lapsing of the peak season for coal," says Citigroup.