Asia Cement (China) Holding Corp said its net profit rose by 162 per cent YoY in 2011 to CNY1.34bn (US$212.6m). Meanwhile, basic earnings per share stood at CNY0.86.
Citigroup has upped Asia cement to Buy from Sell and raised its target price to HK5.36 vs HK$2.71. The house expects earnings should bottom with selling prices in central China down 10 per cent YoY and volumes almost frozen.
The house adds that Asia Cement's FY11 dividend yield was 5%, providing good cash income, and the company should also be able to free ride on consolidation efforts made by Anhui Conch, China National Building Materials and China Resources Cement.