China's Asia Cement nine-month revenue declines on weak demand

Overview

• China cement producer's nine-month revenue fell year-on-year amid weak sector demand

• Company posted net loss for nine months, compared to profit a year earlier

• Results impacted by weak real estate demand and high coal costs

Outlook

• Company expects cement prices to trend upward in Q4 2026 amid volatility

• Company sees limited improvement in cement demand due to ongoing real estate adjustment

• Company aims for quarter-on-quarter improvement in operating performance in Q4 2026

Result Drivers

• WEAK DEMAND - Co said continued weakness in investment, especially in real estate, led to lower cement demand

• HIGH COAL COSTS - Persistently high coal prices increased cost pressures, affecting profitability

• SUPPLY ADJUSTMENTS - Regional supply cuts and staggered production schedules were implemented but not fully effective

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the construction materials peer group is "buy."

• Wall Street's median 12-month price target for Asia Cement (China) Holdings Corp is HK$2.40, about 61.6% above its October 26 closing price of HK$1.49

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads

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• Oct 26 - China's central bank launches swap facility to offer emergency liquidity to asset managers

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)