Credit Suisse Favors Anhui Conch on Govt Stimulus Plan

Credit Suisse raises Anhui Conch target price to HK$48.00 from HK$35.00 on expectation 2009 unit EBITDA to rise to US$8.70/ton vs 2008's US$ 7.60/ton; and cuts FY08 EPS forecast by 3%, but raises FY09-10 EPS forecasts 8%, 1%.

Credit Suisse says cement remains favored sector in 2009 despite expecting demand to remain soft in 1H09 as tips 2H09 improvement in supply/demand on government's stimulus plan, relatively low net supply growth.