Anhui Conch Cement Co - May 2015

Following its 31 per cent fall in net profit in 1Q15, shares in Anhui Conch slid 2.3 per cent as some analysts downgraded their rating to ‘hold’. The company’s revenue contracted by 11 per cent over the same period, driven mainly by a YoY decrease in the selling price of the group’s products. According to global investment bank Jefferies, the weak seasonal recovery in cement prices could see the company’s 2Q15 earnings also fall by 30 per cent YoY. Cement prices reportedly continued to decline well into April and are now 10-25 per cent lower than in 2014 in most parts of China