UBS raises China Resources target price, maintains ‘buy’ rating

UBS raises China Resources target price, maintains ‘buy’ rating
Published: 18 March 2014


UBS has raised its target price for China Resources Cement to HK$7.3 from HK$6 and maintained its ‘buy’ rating.

The research house expects the South China cement market to remain solid in 2014-15. Market quoted cement prices in Guangzhou and Nanning have been CNY110/t (32.8 per cent) and CNY90/t (33.3 per cent) higher YoY, respectively.

UBS said the Chinese cement producer is negotiating with the local government about taxes and it could receive a rebate in 2014.

It has upgraded China Resources 2014/15/16 EPS forecasts to KH$0.55/0.55/0.56, based on higher average selling price assumptions.