Barclays Research raised its target price for China Resources Cement to HK$5.91 (US$0.76) from HK$5.79 and maintained its "equal weight" rating.

Despite the strong cement price in southern China so far this year, the research house noted concerns over CRC's long-term growth as volume growth expansion is limited and the company does not have any material consolidation plans so far.

Barclays said the fourth quarter usually shows the strongest seasonality for the cement industry. However, it views the extent of price hikes in 4Q may be less than during the same period last year, mainly due to muted demand on the ground and also fines imposed as a result of the early-September NDRC investigation in Jilin province.