China Resources Cement net rises 26% YoY

China Resources Cement net rises 26% YoY
Published: 10 March 2015


China Resources Cement (CRC) announces that it made HKD4.21bn (US$542.6m) net profit in 2014, up 26 per cent YoY. Earnings per share were 64.4 HK cents.

The company gained HKD 32.67bn in incomes last year, up 11.3 per cent YoY. Gross profits increased 22.3 per cent to HKD10.23bn and gross profit margin rose from 28.5 per cent to 31.3 per cent thanks to price and sales increases.

Analysts at Jefferies International said CRC's FY14 earnings were just slightly below consensus estimates, but Jefferies expects a tough time ahead. Cement prices in its core markets are now about 15 per cent lower than last year and could potentially lead to a negative profit alert for 1Q15.

While capital expenditure will remain high at about HK$4.5bn in 2015, the company indicated it will come down substantially to about HK$2bn in 2016, Jefferies added