Barclays Research raised its target price for
China Resources Cement (01313) to HK$5.91 from HK$5.79 after marking-to-market for the 3Q
cement price, and maintained its "equal weight" rating.
Despite the strong cement price in southern China so far this year, the research house
noted concerns over its long-term growth story 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. (KL)