China's Conch Cement reports 2007 profit up 64%

Anhui Conch Cement Co<600585><914>, China's largest cement producer by output, said on Thursday its net profit enjoyed a robust increase of 64% year-on-year last year due to the rosy sales.

Net income for the fiscal year of 2007 surged to RMB 2.49 billion (US$355 million), compared with RMB 1.52 billion a year ago, said the company in a statement. Sales climbed to RMB 18.78 billion, up 17% from the previous year.

Anhui Conch may benefit through 2009 upon undersupply in the country as projects like the Three Gorges Dam and the 2008 Olympics fuel demand for the product, analysts said, cement prices is likely to rise 13% in 2008 and 10% in 2009.

Anhui Conch is the biggest of 60 producers picked by the Chinese government to benefit from an industry overhaul by being given preferential treatment for bank loans and land purchases. It has a cement-making capacity of more than 10 million tons annually.