UBS lifts China Resources Cement

UBS lifts China Resources Cement
Published: 14 January 2013


UBS lifted its target price for China Resources Cement (01313) to HK$5.5 from HK$5.05, but downgraded the stock to "neutral" from "buy".

It said CR Cement's share price has risen 51 per cent since its September 2012 low due to an increase in cement prices in its main markets of Guangdong and Guangxi. UBS believes the strong performance has factored in a potential improvement in margin.

UBS notes that clinker prices have corrected sharply since December 2012. Although inventory is still falling, the research house thinks downside risk for cement prices exists in 1Q13.