The Zhitong Finance App learned that CITIC Securities released a research report saying that it maintains the “buy” rating of China Resources Cement (01313). Considering that the company is a leading cement company in Guangdong and Guangxi provinces, cement industry demand in the fourth quarter is expected to be supported by infrastructure projects, maintaining the 2023-25 EPS forecast of 0.2/0.24/0.3, with a target price of HK$2.4.

According to the report, in the fourth quarter, rainfall decreased and the weather improved in South China, infrastructure projects are expected to accelerate, and the two regions ushered in the traditional peak season for cement sales. According to research by Centennial Construction Network, construction of projects such as Baiyun Airport Phase III, the Shenzhen-Shantou High Speed Rail, and the East Guangdong Intercity has had a certain impact on cement demand. Looking ahead, in the context of the “Guiding Opinions on Actively and Steadily Promoting Urban Village Renovation in Megacities” policy, Guangzhou and Shenzhen, as megacities, will support cement demand to a certain extent. The pressure on the cement industry in South China is expected to ease, and profits are expected to gradually recover.