Gronghui 26 October. Macquarie published a research report pointing out that after the mainland cement prices fell from July to August, prices in the Yangtze River Delta region rebounded in September, while prices in the Pearl River Delta region still lagged behind due to typhoons and supply pressures. The bank simulates that the gross profit margin (GP/t) per ton of cement in the Yangtze River Delta and Pearl River Delta regions in the third quarter was 57 yuan and 32 yuan respectively, down 23 yuan and 84 yuan on a quarterly basis. The peak season in the fourth quarter may be quiet, as the bank notes that cement prices in the Yangtze River Delta and Pearl River Delta regions have risen only moderately since early October, ranging from 20 yuan to 40 yuan and 20 yuan respectively. However, the bank advises investors to look beyond this year in anticipation that the central government will continue to introduce policies until cement price growth is back on track. The bank does not expect the mainland cement industry to lose capacity because of the strong balance sheets of the main players. If Anhui Conch Cement and Runnai launch the management equity incentive scheme in 2024 / 2025, it is believed that profitability can be restored. The bank cut its 2023-2025 profit forecasts for Anhui Conch Cement and Runni by 14% to 23% and 27% to 54% respectively, maintaining an "outperform" rating on the two shares, lowering the target price of Anhui Conch Cement's H-shares from HK $36.80 to HK $31 and Runnu from HK $4.80 to HK $2.80.