Anhui Conch net profit hit by weaker prices, China

Anhui Conch reported a 45.6 per cent in net profit for 2012 due to weaker average selling prices.

The company reported net profit of CNY6.31bn (US$1bn) last year as average prices slipped to CNY245/t from CNY308/t a year ago.  Operating revenue dropped 6.41 per cent per cent YoY to CNY45.06bn in 2012. The company sold 187Mt of clinker and cement last year, reflecting a growth of 18.33 per cent YoY.

Conch added 20.8Mta of clinker production capacity and 28.3Mta of cement production capacity in 2012.

Cement consumption in China is expected to improve this year as the country proceeds with its urbanisation push, analysts at JP Morgan said in a research note. "On the policy side, with pollution a top policy priority, we do not rule out the possibility of China imposing stricter emission standards in the cement sector, which could lead to a short-term increase in costs but longer-term benefit for large players through consolidation," the house says