Citigroup has lowered its target price for Anhui Conch and China Resources Cement.

Conch’s target price has been lowered to HK$37.5 from HK$28.2 and maintained its buy call. The research house expects a price cut of CNY20-30/t and a cost hike of abut CNY10/t as lower utilisation drives fixed costs up.

Meanwhile, the target price for China Resources Cement has been cut to HK$5.53 from HK$5.88 and maintained its ‘neutral’ rating. The house noted that management sounds comfortable on demand and pricing in the south. They believe that infrastructure should pick up in Guangzi and Fujian in 2012 to underpin cement demand. The cement producer has also decided to extend the construction period for new lines to delay new capacity coming on-stream.