NEWS CENTER

Building materials industry: industry policy is good to focus on conch cement.


Release time:

Jan 10,2012

The Ministry of Industry and Information Technology has formulated the "Twelfth Five-Year Plan for the Comprehensive Utilization of Bulk Industrial Solid Waste". The plan requires that by 2015, the comprehensive utilization of bulk industrial solid waste will reach 1.6 billion tons, the comprehensive utilization rate will reach 50%, the annual output value will be 500 billion yuan, and 2.5 million jobs will be provided. It is estimated that the project involved will require a total social investment of 100 billion yuan, with an annual output value of 144.5 billion yuan and an annual utilization of 412.1 million tons of bulk industrial solid waste. This week's key company dynamics (1) AVIC Sanxin on the wholly-owned subsidiary Shenzhen Sanxin Curtain Wall Engineering Co., Ltd. capital increase and share expansion matters involving related transactions.

The Ministry of Industry and Information Technology has formulated the "Twelfth Five-Year Plan for the Comprehensive Utilization of Bulk Industrial Solid Waste". The plan requires that by 2015, the comprehensive utilization of bulk industrial solid waste will reach 1.6 billion tons, the comprehensive utilization rate will reach 50%, the annual output value will be 500 billion yuan, and 2.5 million jobs will be provided. It is estimated that the project involved will require a total social investment of 100 billion yuan, with an annual output value of 144.5 billion yuan and an annual utilization of 412.1 million tons of bulk industrial solid waste.

This week's key company dynamics.

(1) AVIC Sanxin's announcement on the capital increase and share expansion of Shenzhen Sanxin Curtain Wall Engineering Co., Ltd., a wholly-owned subsidiary, involving related transactions;(2) BBMG will adopt cement kilns to co-dispose of waste incineration fly ash in the "Twelfth Five-Year Plan" technology, The energy-saving effect is remarkable;(3) CSG was awarded the "Most Social Responsibility" award in the 2011 China Listed Companies.

Focus on companies and ratings

Conch Cement achieved clinker production of 1.39/1.76/0.182 billion tons in 2011/12/13, and achieved cement clinker sales of 1.97/2.49/0.257 billion tons according to the current proportion of the company's product structure. It is expected to achieve operating income of 580.63/685.94/74.854 billion yuan, corresponding to gross margin of 38%/37%/37%, respectively. To achieve earnings per share of 2.65/2.80/2.93 yuan, we have given Conch Cement a target price of 21 yuan within 12 months, corresponding to the target P/E of 2012 and 2013 of 7.5 times and 7.17 times. Give an "overweight" rating.