Goldman Sachs Raises CONCH CEMENT (00914) Target Price to HK$31, Interim Results Beat Expectations

Stock News
08/29

Goldman Sachs issued a research report stating that CONCH CEMENT (00914) recorded a net profit of RMB 4.6 billion for the first half of the year, representing a 33% year-on-year increase. Excluding one-time items such as provisions related to capacity replacement, the recurring net profit reached RMB 5.1 billion, up 32% year-on-year. The investment bank believes the results exceeded expectations, primarily benefiting from improved profit margins in the overseas cement business and better-than-expected performance from the ready-mixed concrete (RMC) and aggregate businesses. The firm lowered its recurring net profit forecast for this year by 13% to reflect the persistently low cement profit margins in the mainland market, while keeping forecasts for the next two years largely unchanged. The H-share target price was raised from HK$27 to HK$31, while the A-share (600585.SH) target price was increased from RMB 27 to RMB 32, with both maintaining a "Buy" rating.

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