Morgan cuts CR Cement target price

Morgan cuts CR Cement target price
24 September 2015

Morgan Stanley lowered its target price for China Resources Cement (CRC) to HK$5.1 from HK$5.6, and maintained its "overweight" rating.

The research house said the slow season is behind and it sees more policy support on the infrastructure and property side. Morgan Stanley expects construction demand to improve and cement prices to turn around.

It has slightly lowered 2015 sales volume based on management's latest guidance. The research house has also included the one-off tax gain (reverse of over-provision in the past period) of HK$500m in 2015 full-year number. The company guided that there are no more tax gain in 2H.

Morgan Stanley noted that Guangdong's demand picture is better than the national average. Its year-to-date property sales are stronger than the national average and infrastructure spending is also more promising than other regions. (Source: ET Net News).

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Tagged Under: China Resources Cement