美联新材(300586):Main business improving, tapping new energy materials next

Equity Research Report

  Conch Venture (586 HK)

  Main business improving, tapping

  new energy materials next

  Huatai Research Interim Results Review Rating (Maintain): BUY

  2 September 2022 │ China (Hong Kong) Waste Management Target price (HKD): 26.20

  Analyst GONG Jie

  Lower profits from associated companies, main business stable

  Conch Venture (Conch) reported (29 August) 1H22 net profit of RMB2.43bn

  SAC No. S0570519110002

  SFC No. BHG354

  gongjie@htsc.com

  +(86) 21 2897 2097

  (-30.1% yoy) from continuing operations. Profits from associated companies fell Analyst Bruce WANG

  31.1% yoy, hit by cement price declines. In view of our lower cement price

  assumptions, we cut our 2022E/2023E profit from associated companies by

  SAC No. S0570520110001

  SFC No. AOH868

  bruce.wang@htsc.com

  +(86) 21 2897 2099

  32.3/27.0% and net profit by 21.9/12.2%. We cut our target price by 25.8% to

  HKD26.2, still based on SOTP valuation (previous: HKD35.3). With pro-growth

  policies rolled out and indus