Equity Analysis /
Hong Kong

HK : CNBM - Earnings rebounded in 1H21, expect stable yoy cement gross margin

    Mark Po
    Mark Po

    Research Analyst

    31 August 2021
    Published byCGS-CIMB

    CNBM reported net profit of Rmb8,087m in 1H21, up 25.0%. High coal prices led to 15.7% lower cement blended gross profit per tonne. But because of a surge in ASP, CNBM’s cement gross margin is expected to remain flat yoy in 2021. Reiterate ADD with a TP of HK$14.74 (1.04x 2021F P/Bv). The stock is our top pick in the sector.