Daiwa Research has lowered its price target for China Shanshui Cement to HK$4.2 from HK$8.7 and downgraded its stock from ‘outperform’ to ‘buy.’
Shanshui has revised down its target by 15 per cent to 55Mt. With more cement coming from Hebei Province, Daiwa sees downside risks for prices and a likelihood of more and longer production cuts in Shandong and Liaoning.
It noted that Shanshui has already prepared for 1-2 more cuts of 20-30 days each in Shandong and believes Shanshui will sacrifice sales volume and market share to support cement prices and profit margins. (Source: ET Net News Agency)