Citigroup maintains a "buy" rating on Anhui Conch Cement (00914) with a target price of HK$27.

Citigroup released a research report stating that it maintains a "buy" rating for Anhui Conch Cement (00914) with a target price of HK$27 and has initiated a 30-day observation of upward catalysts. According to Digital Cement Network, cement and clinker prices in the Yangtze River Delta region will be increased by RMB 50 per ton on July 5th. The main reason for the price hike is the industry's self-discipline and off-peak production schedules, with plans to shut down production for 10 days each in July and August, resulting in a 30% reduction in output. The bank pointed out that this move goes against the weak seasonal factors and signals that industry-leading companies including Anhui Conch Cement and CNBM (03323) will shift their pricing strategy in the second half of the year, prioritizing profits over market share. Additionally, the bank expects prices in the East China market to continue rising in the coming months.