Reuters are reporting that China's largest cement maker by market value, Anhui Conch, has reported a 32% drop in 2015 net profit, missing estimates and marking its first profit fall in three years as a slowing economy hit construction.
The cement maker with a market capitalisation of US$13.1 billion, has also warned that the cement industry's oversupply situation could worsen in 2016 as growth in China's fixed investments was slowing on the back of the weaker economy.
China's decelerating economy is evident from easing construction activities in certain parts of the infrastructure and real estate sectors, which is dampening demand for building materials, such as cement and steel.
In 2015, Anhui Conch Cement Co Ltd's net profit reached 7.5 billion yuan (US$1.15 billion), lower than the previous year's 11.0 billion yuan and falling short of an average estimate of 8.1 billion yuan.
The company had registered net profit rises in 2013 and 2014.
Anhui Conch is aiming to produce 10% more cement and clinker this year, banking on expectations that the construction sector will pick up some speed in the second half of the year.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/30032016/anhui-conch-reports-first-profit-fall-years-786/