Daiwa raises CRC target price, China

Daiwa Research raised its target price for China Resources Cement (CRC) to HK$6.6 from HK$5.95, and retained its "buy" rating.

The research house cited management noting that the market has been overly pessimistic on cement prices for south China, as many analysts seem to have misread the capacity growth in the region. While many production lines are pending to be built in the region, not all are able to get full approval, the research house said.

With slower capacity growth and improving demand, cement prices in south China have been rising steadily since June 2013. Daiwa expects another CNY10-20/t increase in the fourth quarter of 2014, the country's traditional peak season for cement sales.