Citi Research raises target price for China Resources

Citi Research raises target price for China Resources
13 April 2015


Citi Research raised its target price for China Resources Cement (CRC) to HK$5 from HK$4.5, and upgraded the stock to "neutral" from "sell".

The research house lowered CRC's unit cost of cement and clinker by one per cent to HK$214/t in 2015, thus lifting 2015 GP/t to HK$96/t, taking into account the weak coal price.

Citi also factored in a one per cent higher concrete price, revising up its unit GP to HK$97/m3 fromthe previous HK$93/m3. As a result, it adjusted 2015 earnings upward by five per cent to HK$3.9bn, representing a YoY decline of seven per cent.

Published under Cement News

Tagged Under: China China Resources Cement