Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Anhui Conch In The Right Markets And Using The Right Approach

Cement demand growth typically goes hand in hand with economic growth, and that has certainly been true in China. As the country's second-largest and most profitable cement maker, Anhui Conch Cement (OTCPK:AHCHY) is one of the best-positioned companies to take advantage of ongoing economic and infrastructure growth in China.

It is not as though investors have forgotten about Anhui Conch, though. The shares are about 10% undervalued on an EV/EBITDA basis, which may strike some readers as an insufficient margin of safety for a company that is highly dependent on economic policies it cannot control. Given its modern plants, cost advantages, and ability to act as a consolidator, though, investors with a longer-term outlook may yet like what...

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