[ET Net News Agency, 9 January 2020] Nomura raised its target price for China Resources
Cement (CRC)(01313) to HK$11.3 from HK$9.5 on higher cashflow projections but downgraded
its rating to "neutral" from "buy" after a 30% rally over the past three months.
The research house raised its 2019/20 earnings forecasts for CRC by 5%/5%, as it lifted
its cement price forecasts for the two years given stronger cement prices in 4Q 2019 and
stable supply-demand outlook into 2020.
Nomura does not recommend investors chase the rally, but it sees limited downside for
CRC given the limited capacity expansion in South China and potential demand upside driven
by infrastructure projects. It said CRC is still a defensive yield play given an estimated
dividend yield of 6% for 2019-20. (KL)