0691.HK 's net profit for the six months to the end of June will fall by no less than 50 per cent year-on-year, as profits in both regions have fallen sharply due to significant year-on-year declines in sales prices in the northeast and Shanxi regions. With a net profit of 348 million yuan in the middle of last year, the maximum profit in the first half of this year was 174 million yuan.

Barclays has cut its target price of Shanshui cement by 7% to HK $3.06 to reflect weak demand in Liaoning and Shandong, and believes that cement prices are still worrying in the second half of the year, while the rating keeps the market in line with each other.