Daiwa ups West China Cement but prefers peers
Daiwa upgrades West China Cement to Hold from Underperform, and raises the target price to HK$3.33 from HK$2.38 after revising up its FY11-12 earnings forecasts to reflect the company’s expansion in Xinjiang and Shaanxi provinces.
The house says the upgrade is also due to the fact that the stock was not de-rated in the way it had expected following its rating downgrade in late February on the back of the chairman’s share pledge for a personal loan, with feedback from investors suggesting they are not very concerned about this event.
Despite the upgrade, Daiwa says within the sector it prefers other cement companies, with its top picks being China Resources Cement and China National Building Materials.
Published under Cement News
