The big motorcycle research newspaper pointed out that$Anhui Conch Cement (00914.HK) $Management revealed that repeated outbreaks in various places and epidemic control measures in Shanghai and surrounding areas have had a negative impact on local road transportation, downstream customer operations, as well as the company's cement and clinker transportation, which is expected to result in an average daily shipment loss of 8-100000 tons, accounting for about 8-10% of the total. In addition, gross margin per unit may decline month-on-month in the second quarter.
However, management reiterated its full-year guidance of 325 million tonnes of own cement and clinker shipments in 2022, taking into account the construction boom in the second half of the year, especially in the fourth quarter of 2022, which is the traditional peak season, which is expected to be mainly supported by infrastructure investment. In addition, management believes that even if a reasonable range of coal prices has been identified and implemented, there is not much room for downside in the short term. Domestic thermal coal prices are expected to decline gradually in the rest of this year. The bank maintains the company's target price of HK $55 and its "overweight" rating, calling it the industry's preferred stock.