China Resources Cement sees strong growth in attributable profit

China Resources Cement sees strong growth in attributable profit
Published: 15 April 2014


China Resources Cement (CRC) has said it expects profit attributable to shareholders for the quarter ending 31 March 2014 to be significantly higher compared to the corresponding period of 2013.

The improvement is mainly attributed to higher average selling prices (ASP) of cement and clinker as well as reduced coal costs compared to 1Q13. The company’s quarterly results announcement will be issued at the end of April.

Macquarie Research has slightly lifted its target price for the company to HKD7.2 from HKD6.5 and maintained its ‘outperform’ rating. The research house has raised CRC’s ASP by 7-8 per cent in 2014/15 and unit cost by 2-3 per cent. Macquarie said the company is positive on supply/demand in South China and likes CRC due to its 64 per cent exposure to Guangdong/Guangxi.