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| HSCEI1 | 8,375.21 | -74.89 | 46.99B |
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2026-09-03 13:36:15 G Sachs published a mid-year review of China's commodities sector, covering around 20 stocks in steel, coal, cement and paper packaging. The broker said cement results in the first half mostly missed expectations, coal was broadly in line with expectations, while steel performed better than market concerns had suggested. Key trends include: coal prices were supported by resilient demand and tighter safety regulations; cement margins were dragged down by weak construction demand and limited supply-side progress; steel margins stayed at low levels due to continued deterioration in demand and limited supply discipline; and paper packaging margins weakened YoY because of supply pressure. Compared with actual performance in the first half, the broker expects margins for cement, steel and paper packaging to remain under pressure in the second half, but it remains positive on coal due to resilient demand prospects. The broker adjusted earnings forecasts for covered companies ranging from a 403% downward revision to a 14% upward revision. Among them, forecasts for coal companies for 2026 to 2027 were cut by 2% to 9%; 2027 forecasts for cement companies were reduced by 28% to 112%; 2027 forecasts for most steel companies were lowered by 14% to 41%; while 2026 to 2027 forecasts for paper packaging companies were raised by 1% to 5%. The broker maintained the Buy ratings on CHINA COAL (01898.HK) and CONCH CEMENT (00914.HK); downgraded CNBM (03323.HK) from Buy to Neutral; and downgraded CR BLDG MAT TEC (01313.HK) from Neutral to Sell. Details of the ratings and target prices are shown in a separate table. (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |