The 1 H 2008 net profit of the company is estimated to increase by 200% to 300% YOY, thanks to an increase of the market share, strengthened internal management and sustainability, as well as stable development strategies.

Investment highlights: As the largest manufacturer of cement in Gansu Province and the Qinghai-Tibet regions, its annual cement production capacity increased to 6.8 mln tons, of which, 5.6 mln tons are from new dry-process cement production lines, accounting for 62% of total new dry-process cement production in the Gansu Province. At the beginning of 2007, it was selected as one of the 'National Twelve Key Large-scale Cement Manufacturers' in China, following which, it has won additional preferential policy supports from the government. In addition, in 2007, it produced 6.01 mln tons of cement (clinker aggregate included), a 9.91% YOY increase and sold 6.06 mln tons of cement, a 10.48% increase from the previous year.

The company has invested RMB 60 mln to establish Gansu Qilianshan Waste Heat Power Generation Co., Ltd. to recover waste heat for its environment-friendly power projects. The company signed an Emissions Reduction Purchase Agreement (ERPA) with a Swedish energy agency in June 2006, to whom it will sell the emission credits provided by its low-temperature cement waste-heat power station for the clean development mechanism (CDM) sector.

Risk warnings: Surging raw materials leads to rising costs along with the progress and outcome of resource integrations.


Source: www.topcj.com

Date: 10 Jul 2008

CN01/RL/MZ/BT/WH