Lyon issued a report stating that it is bullish on the performance of leading cement companies possibly continuing to improve. Recommending Conch Cement (00914), Huaxin Cement (06655), CR Bldg Mat Tec (01313), and CNBM (03323).
The bank believes that cement companies have re-engaged in coordinated production control to promote supply and demand balance. Therefore, with demand and supply coordination improving, the cement industry should achieve better profitability next year.
The bank stated that the Ministry of Finance has begun to follow up with more effective fiscal policies, expecting infrastructure growth to receive support next year. In addition, the bank believes that several rounds of price increases starting in June this year prove that the cement industry has moved out of the severe imbalance between supply and demand.
