BBMG’s Recent underperformance unjustified - Goldman

BBMG’s Recent underperformance unjustified - Goldman
04 August 2011


BBMG’s recent underperformance against other Chinese cement stocks is unjustified, Goldman Sachs says, noting investor concerns BBMG’s cement business may be affected by Northern China’s weak pricing and that the property segment might drag overall profitability.

But the house says while cement producers cut prices in Hebei province recently, Beijing is one of the best-performing markets year-to-date, with prices there up 6% vs an on-average national fall of 8%;

"With 40% market share in Beijing, we believe BBMG will be able to translate the strong cement pricing in Beijing into bottom line growth. The strong cement price performance in Beijing suggests strong demand from the property sector, especially social housing projects;" the house notes.


Published under Cement News