Event:
It is unveiled by MIIT on February 26, 2009 that cement output reached 82mn ton in January 2009, which held the line with that of January 2008; besides, cement sales volume continued to increase in Anhui, Jiangxi, Hubei, Hunan, Guangxi and the southwest; and price slightly mounted. Sales volume of major production areas dropped. Ex-factory price fell below Rmb250/ton in Zhejiang, Shandong, Hebei and Jiangsu, etc.
Our Analysis and Estimation:
1) Capacity levels off compared with that of corresponding period last year, yet regional differentiation widens;
2) Listed companies see different situations;
3) Cement price is expected to surge in March;
Investment Suggestion:
We suggest investors to concern about regional bellwethers with core competitiveness, especially those with high development and market integration capacity, such as Anhui Conch Cement Company (600585), Huaxin Cement (600801), Tangshan Jidong Cement (000401), Xinjiang Tianshan Cement (000877) and Gansu QiLianShan Cement (600720).