BofA Securities reported that CONCH CEMENT (00914) achieved a post-tax net profit of RMB 6.3 billion in the first three quarters, up 21% year-on-year. The third-quarter net profit rose 3% to RMB 1.94 billion, in line with expectations.

The company's self-produced cement volume in Q3 saw a slight decline of 0.5% year-on-year to 69 million tons, with a gross profit per ton of RMB 55. The drop in production was significantly better than the industry average.

BofA estimates CONCH CEMENT's Q4 gross profit per ton will reach RMB 64, assuming flat sales volume, projecting a net profit of RMB 2.24 billion. The target price was slightly lowered from HK$27 to HK$26, with earnings forecasts for this year and next revised down by 12% and 6%, respectively. The firm reiterated its "Buy" rating, citing confidence in a sustained profit recovery.