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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