West China Cement (02233) saw its shares rise nearly 4% in morning trading. As of press time, the stock was up 3.13% at HK$1.81, with a turnover of HK$8.9917 million.
Guotai Haitong Securities noted that following the shock from exchange rate reform, Ethiopia's currency has remained stable over the past year, providing favorable conditions for corporate profitability. Cement prices in Ethiopia have maintained an upward trend this year, with the national cement market price at approximately US$117 per tonne in March, around US$127 per tonne in June, and approximately US$150 per tonne in September.
The brokerage also pointed out that cement prices in Uganda remain firm, though exchange rate fluctuations warrant attention; cement prices in Uzbekistan are expected to remain stable with a slight upward bias.
West China Cement's interim report showed that in the first half of the year, sales volume in the Chinese market declined 22.6% to 5.15 million tonnes, while sales volume in overseas markets increased 29.3% to 5.39 million tonnes. The company stated that investments in international markets have begun to yield returns, particularly with operations in Sub-Saharan Africa and Central Asia continuing to contribute significant profits. The company expects to continue seeking growth opportunities in emerging markets in the future.
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