Taiwan cement sector 2H outlook promising

Taiwan cement sector 2H outlook promising
29 July 2011

Taiwan cement sector is expected to deliver a strong 2Q results and its 2H outlook remains "healthy" on strong China profit, says Credit Suisse.

For Asia Cement, the house estimates a 45%-50% on quarter earnings growth as its China profits grew 49% on quarter on volume growth and unit profit expansion.

Taiwan Cement is expected to double its net income on its China operations and strong profits from its chemical subsidiary. Despite investor concerns over a possible 3Q industry slowdown, the house says prices are likely to hold up for Asia Cement territories such as Hubei and Jiangxi as well as in Taiwan Cement’s territories in Guangdong, Guangxi, and Jiangsu.

"On the Taiwan side, we believe anti-dumping tax (final decision in August) will favor local producers which can help to improve TCC’s and ACC’s Taiwan profit in 2H11 and onward," the house adds.

Published under Cement News