Credit Suisse: earnings downside risk in China cement sector

Credit Suisse says that data points in the past two weeks further weakened in the Yangtze Delta (YZD) while southern/central sough demands remains stagnant, as continued weak demand in (YZD) and surrounding provinces and new supply pressure drove another CNY20-60/t price cut in the region.

The house says that earnings remain vulnerable to downside risk, driven by weakening cement prices and potential disappointment in sales volume, with data at the end of February suggesting a 35-75 per cent downside risk to consensus for large caps “now maybe more.”

Source: Dow Jones Newswires