The Third quarter report of Conch Cement shows ESP is 1.54 yuan and the performance exceeds expection slightly. The key reason is the improvement of expense per ton and decrease of income tax ratio. We expect the comprehensive sales of cement and clinker is 108 million tons with year-on-year growth of 10.6%, and the average sale price raised by 15 yuan per ton. The gross and net profit per ton raised by 14 yuan, and the income tax ratio decreases 2% reaching 21.6%.(translator:Donghang)

CITIC Securities