Citigroup slashes Anhui Conch Cement’s target to HK$28.05 from HK$45.77, as it takes into account the risk aversion in the market, and changes from P/E valuation to EV per tonne; but it keeps the stock at Buy.

The house says Conch delivered strong 3Q numbers, with gross profit/ton staying above CNY132, gradually trending up, and has gone beyond CNY140/t in October.

"If all rumours on price cuts had been right, gross profit/tonne for the company would have fallen below CNY100. The previous selloff was mainly derived from the panic over the macro picture," Citi says.
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