Sichuan Shuangma Cement Co net profit drops

Sichuan Shuangma Cement Co net profit drops
Published: 17 April 2012


Sichuan Shuangma Cement Co net profit dropped 32.5% in 2011 to CNY162.65m (US$25.8m), from an adjusted 2010 net profit of CNY240.97m.

The company's shares are down 1.4% at CNY8.48, but Dongxing Securities analyst Zhao Junsheng says he sees a longer-term upside. "The fall in profit was expected, and the overall cement sector is facing some pressure right now. If you look in the longer term, I expect to see some recovery" as regional demand for cement picks up, Zhao says.

He maintains his Recommend rating from January, which indicates an expectation it will outperform the market by 5%-15% over six months, but does not give a new target price.

(Source: Dow Jones Chinese Financial Wire)