Asia Cement (0743.HK) may fall, after reporting weaker-than-expected FY09 results; net profit +48.5% YoY at CNY610m but lower vs average CNY677m forecast based on Thomson Reuters.
BNP Paribas says bottom line 10.2% below house’s estimate, mainly due to rising coal price in 4Q09. Sales volumes are expected to rise in FY10 to rise 42.4% to reach 19.5Mt with one new line each in Sichuan, Hubei and Jiangxi starting production in 1H10. House cuts FY10 earnings estimates by 4.3% on lower margin assumption.
