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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

9M Revenue

RMB 3.33 bln

9M Net Loss Attributable

RMB 300.90 mln


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

  • Oct 26 - Guangdong Land nine-month revenue drops 20% on lower property sales

  • Oct 26 - Sinopec Shanghai Petrochemical starts building ethylene unit in $3 billion upgrade

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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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