According to the research report released by ubs group, conch cement (00914) had a year-on-year drop of 53% in net profit in the second quarter, to 1.8 billion yuan under the Chinese accounting standards, falling short of the bank's expectation of 2 billion yuan. The mid-term net profit accounted for 36% of the market's forecast for its full-year earnings, lower than 63% and 62% in the previous two years. The bank lowered its profit forecast for conch cement from this year to 2026 by 7% to 9%, reflecting the downward revision of cement price forecasts. The target price was raised from HK$17 to HK$17.7 and the rating was maintained as "neutral".

The report states that for the company's self-produced cement and clinker business, based on the second quarter sales volume remaining roughly flat year-on-year, the bank expects Conch Cement to gain market share in a 10% shrinking industry. The bank also pointed out that despite multiple rounds of price increases announced by the company in the Yangtze River Delta, the company's cement prices further dropped to 52 yuan per ton, impacted by intensified competition within the region. Since August, cement price reductions have continued to be observed, leading to the expectation of continued pressure on cement profitability in the third quarter.