Goldman cuts Anhui Conch, CNBM to sell

Goldman cuts Anhui Conch, CNBM to sell
Published: 21 July 2008

Goldman Sachs cut China’s Anhui Conch and China National Building Materials to sell from neutral, citing a gloomy outlook for the country’s cement industry.
 
Cement producers are struggling to pass on sharp coal and power tariff increases, the bank said in a research note.
 
"We downgrade CNBM to sell from neutral...mainly due to our concerns of aggressive expansion and associated high gearing when the cycle is coming down," the bank said.
 
The investment bank sees downside potential for cement and gold firms, and upside for coal and steel companies, the report said.