Shares of Anhui Conch Cement, the mainland’s largest maker of the building material, surged 12.79 per cent yesterday after it said its recently approved acquisitions would boost profit eight per cent.
The stock rose HK$3.80 to close at HK$35.30, its biggest gain in five months, as trading resumed following its suspension on April 30.
The company during the suspension said profits should increase to CNY1.6bn this year from CNY1.48bn last year with contributions from assets to be acquired from its parent.
The assets, which include construction materials, packing materials and cement-related businesses, are worth about CNY4.2bn.
Anhui Conch is one of the 12 pillar cement makers chosen by the State-owned Assets Supervision and Administration Commission to lead consolidations in the industry. The government is encouraging large firms to buy smaller rivals to curb overcapacity and create an efficient environment for cement production.