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

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

Published under Cement News