* total domestic cement volume growth slowed to 6.5% YoY to 3.7m tonnes, while YTD growth stands at 10.7%
* Holcim is the fastest growing by volume, with output up 14% YoY for July and 18% YoY YTD
* Semen Gresik volume growth remains anemic at < 4% YTD and is likely to remain the case until 2012 when new capacity is operational
* The 3Q is historically the best for cement demand; poor govt fiscal allocation of the budget and unseasonal rain is likely to have affected demand
* Prices have not increased now for 18 consecutive months; recent electricity price hikes might change that situation
* USD-based costs account for 30-50% of COGS and a higher currency will help keep costs down and margins steady.
* INTP and SMCB remain our conviction calls; we have an U/P on SMGR
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