The Zhitong Finance App learned that Citi released a research report stating that it lowered the target price of China Resources Cement Holdings (01313) by 43.3%, from HK$3 to HK$1.7, lowered the company's profit forecast for 2024 and 2025 by 64% and 60%, and introduced a 2026 forecast. The average sales unit price (ASP) of reactive cement and other products decreased, but sales increased and maintained a “buy” rating.

According to Citigroup, the company's cement and cinder sales in the first quarter of 2024 achieved a positive year-on-year increase of 5.2%. Daily shipments continued to increase slightly year over year in bad weather conditions. The stock rate was 59.4%. The bank expects an average price of about 235 yuan (same below) /ton in April, down from the previous month. It is expected to decrease by 10 yuan/ton per month in May, and a single-digit reduction in the quarter in June. At the same time, management anticipated all improvements in the financing situation in the second quarter, so demand is expected to improve on a quarterly basis. Unit costs fell by 70 yuan/ton in the first quarter, including coal costs by 34 yuan/ton, raw material costs by 10 yuan/ton, and maintenance costs by about 8 yuan/ton. Management is confident that unit costs will be reduced within this year.