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

Asia Cement (China) Holdings

Today 08:40

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

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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.)