[ET Net News Agency, 3 November 2020] Macquarie Research lowered its target price for
Anhui Conch Cement (00914) to HK$68 from HK$70 and maintained its "outperform" rating.
Post 3Q results, Conch remains optimistic about 4Q price hikes in East China with
shipments growth of 5-10% post rain in Golden Week. The research house believes most
negatives are priced in for Conch after 20% correction in two months, back to 6x FY2021
PE, and a 7% dividend yield.
Macquarie estimated that FY2020 capex might fall short of its Rmb10bn target due to the
delay of an overseas ramp on COVID. Capex could increase to Rmb10bn pa. in 14FYP, as they
plan to ramp aggregates capacity to >300mnt versus 60mnt currently. Macquarie trimmed its
FY2020-22 EPS forecasts by 4%/9%/10%. (KL)