Anhui Conch Cement Co Ltd is expected to post a net profit of about 2.3 bln yuan this year following strong results in the first quarter to March and firmer cement prices, Deutsche Bank said.
The investment house’s full-year forecast is 42 per cent ahead of the CNY1.6bn net profit guidance given by Anhui Conch for 2007. The cement maker said it expects to record CNY1.6bn in net profit following its purchase of certain cement assets from the parent company, which will be paid with the issue of Anhui Conch’s A-shares.
"We expect its actual 2007 results to be significantly higher than this guidance," Deutsche Bank said. It also said that Anhui Conch’s strong first-quarter results lends support to its forecast. Anhui Conch recorded a 36 per cent YoY rise in net profit for the first quarter to CNY212.59m while its profit guidance of CNY1.6bn reflects a YoY growth of only 11 per cent.