Citi Research raises target price for China Resources

Citi Research raised its target price for China Resources Cement (CRC) to HK$5 from HK$4.5, and upgraded the stock to "neutral" from "sell".

The research house lowered CRC's unit cost of cement and clinker by one per cent to HK$214/t in 2015, thus lifting 2015 GP/t to HK$96/t, taking into account the weak coal price.

Citi also factored in a one per cent higher concrete price, revising up its unit GP to HK$97/m3 fromthe previous HK$93/m3. As a result, it adjusted 2015 earnings upward by five per cent to HK$3.9bn, representing a YoY decline of seven per cent.