HK Stock Market Move | Anhui Conch Cement (00586) rose nearly 5% in early trading, management is optimistic about continued profit recovery this year, and there are still pricing opportunities in April.

Anhui Conch Cement (00586) rose nearly 5% in early trading, rising 4.77% as of the time of writing to 7.68 Hong Kong dollars, with a turnover of 223.15 million Hong Kong dollars. Bank of America Securities released a research report stating that Anhui Conch Cement's management is optimistic about the continued profit recovery this year, as this year's mild and continuous price increases have proven to be a successful strategy in defending market share, with profit margins rising to over 70 yuan per ton. Although statistical data show a slight contraction in national cement demand in the first two months of this year, Anhui Conch Cement expects first-quarter sales volume to grow by 5%. The bank estimates that Anhui Conch Cement's first-quarter gross profit per ton will be 69 yuan, and net profit is expected to rebound by 39% year-on-year to 2.1 billion yuan. In addition, Anhui Conch Cement believes that there is further room for price increases in April, as cement prices in the eastern region remain relatively low, and bagged cement in Jiangsu along the Yangtze River has seen a third round of price increases of 20 yuan per ton, laying the foundation for gradual improvement in gross profit per ton of cement in the second quarter. Anhui Conch Cement expects a possible impairment in the fourth quarter of this year as capacity quotas are reallocated to more efficient production lines.