htsc report stated that conch cement (00914.HK) recorded a 14.9% year-on-year decrease in net profit to 1.87 billion yuan, falling short of expectations. The weaker-than-expected profit in the third quarter was attributed to the performance of non-cement businesses and an increase in expense ratio. The cement industry's ability to regain profitability has strengthened, with the additional support of stable growth policies, and demand is expected to become stronger by 2025.

The bank mentioned that conch cement has a leading competitive edge, a strong balance sheet, and maintained a 'buy' rating, with a 14.8% increase in the target price of H shares to 32.03 yuan. The bank lowered this year's earnings per share forecast by 1.9% to 1.72 yuan, and based on higher assumptions for gross profit per ton, raised the earnings per share forecasts for 2025 and 2026 by 4.1% and 3.4% to 1.93 and 2.09 yuan respectively. (vc/w)

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