According to China Accounting Standards, UBS Group, as of the second quarter, Anhui Conch Cement (00914.HK) saw a 53% year-on-year decline in net profit to 1.8 billion RMB, lower than the bank's expected 2 billion RMB. The mid-term net profit is 36% of the market's annual profit forecast, lower than 63% and 62% in the previous two years.

The bank has lowered its profit forecast for Conch Cement from this year to 2026 by 7% to 9%, reflecting a downward revision in cement price forecasts. The target price has been adjusted from 17 RMB to 17.7 RMB, with a forecast market rate of 0.45 times for next year and a "neutral" rating maintained.

Regarding the company's self-produced cement and clinker business, based on year-on-year sales being roughly flat in the second quarter, the bank expects Conch Cement to achieve market share growth of 10% in an industry downturn. The bank also noted that despite multiple price increases announced since the second quarter in the Yangtze River Delta region, the company's cement prices have fallen further to 52 RMB per ton, due to intensified competition in the region. Since August, cement prices have continued to decrease, thus the bank expects cement profit margins to remain under pressure in the third quarter.