Chia Hsin Cement Corp. shares gained after Credit Suisse Group initiated coverage on Taiwan’s fourth largest cement maker with an "outperform" rating.
Chia Hsin climbed 6.9 percent, the daily limit, to NT$28.70 at the close of trade in Taipei, compared with a 1.7 percent gain in the benchmark Taiex index.
"CHC is a pure China play, tapping into the growth of the mainland Chinese economy," Taipei-based analysts Sidney Yeh and David Liao wrote in a report yesterday. They set a 12-month price target of NT$40.20 for the stock.
"Chia Hsin is one of the very few companies that has its own port facility and domestic river/international sea transportation privileges," the analysts wrote. "These advantages give it the flexibility with which to address different markets."
China accounts for 65 per cent of the value of Chia Hsin’s shares, according to Credit Suisse estimates.