Investment Rating - The report maintains an "Overweight" rating for the construction materials industry [1] Core Views - Employment data shows improvement, and there are expectations for policy support [1] - The construction materials sector has shown resilience with a weekly increase of 0.97%, outperforming the Shanghai and Shenzhen 300 Index by 2.05% [3] - The cement market is experiencing a slight recovery in demand, particularly in southern regions, while prices are expected to remain stable [5][10] - The glass market is under pressure with high inventory levels and weak demand, but medium-term supply-side adjustments are anticipated [41][43] - The fiberglass sector is expected to see improved profitability due to supply constraints and increasing demand from new applications [5] Summary by Sections 1. Bulk Construction Materials Fundamentals and High-Frequency Data - **Cement**: The national average price for high-standard cement is 352.3 RMB/ton, up 1.2 RMB/ton from last week but down 74.8 RMB/ton from the same period last year. The average cement inventory level is 69.8%, with an average shipment rate of 46.2% [11][18] - **Glass**: The average price for float glass is 1195.4 RMB/ton, down 1.9 RMB/ton from last week and down 258.4 RMB/ton year-on-year. Inventory levels are at 5962 million heavy boxes, a decrease of 54 million from last week [43][45] - **Fiberglass**: Prices for fiberglass remain stable, with a focus on high-end products. The market is expected to see improved profitability as supply constraints persist [5] 2. Industry Dynamics Tracking - The construction materials sector is expected to benefit from policy support and improving economic indicators, with a focus on companies involved in the export supply chain and home renovation [3][5] - The report highlights the importance of technological advancements and domestic semiconductor development, recommending companies in the cleanroom engineering sector [5] 3. Weekly Market Review and Sector Valuation - The construction materials sector has shown a positive trend compared to broader market indices, indicating potential for further growth [3] - The report suggests that the cement industry is at a historical low in terms of price-to-book ratios, presenting opportunities for investment as policies are expected to support recovery [5][10]

Investment Rating - The report maintains a "Buy" rating for several companies in the construction and building materials sector, including China Chemical, Fuyao Glass, Jinggong Steel Structure, Dongfang Yuhong, China Jushi, Yaxiang Integration, Tubaobao, and Huaxin Cement, while maintaining an "Overweight" rating for Zhongfu Shenying [10][39]. Core Insights - The short-term fundamentals of the industry remain subdued, with a focus on price increases, new technologies, and long-term potential. Investment in infrastructure, real estate, and manufacturing has shown mixed results, with infrastructure investment declining by 0.1% year-on-year, real estate down by 14.7%, and manufacturing up by 2.7% [1][16]. - The report suggests three main investment themes for 2026: companies benefiting from overseas expansion that are not fully priced in, companies in the real estate chain that have cleared risks and are seeing income or profitability turning points, and domestic replacement new material companies benefiting from high-end manufacturing [1][14]. - The report highlights the importance of policy support for consumption and investment, with recent government meetings emphasizing the need for project construction and funding allocation [16][18]. Summary by Sections Industry Overview - The construction and building materials sector is experiencing a mixed performance, with infrastructure investment showing a decline and real estate facing significant challenges. However, there are positive signals from government policies aimed at boosting consumption and investment [1][16]. Company Dynamics - Dongfang Yuhong announced plans to sell part of its real estate assets to improve its financial structure, expecting a loss of approximately 25.81 million yuan from the asset disposal [3]. Price Trends - As of November 14, national cement prices increased by 0.3% week-on-week, while the average price of float glass decreased by 2.6% [2][31]. The report notes that the cement market is expected to continue its upward trend due to seasonal demand [30]. Recommended Companies - The report recommends several companies for investment, including: - China Chemical (Target Price: 12.05) - Fuyao Glass (Target Price: 98.21) - Jinggong Steel Structure (Target Price: 5.75) - Dongfang Yuhong (Target Price: 17.19) - China Jushi (Target Price: 19.80) - Yaxiang Integration (Target Price: 64.65) - Tubaobao (Target Price: 16.01) - Huaxin Cement (Target Price: 26.70) - Zhongfu Shenying (Target Price: 31.80) [10][39].

Summary of African Cement Industry Conference Call Industry Overview - The African cement market is expected to grow at an average annual rate of 5%-7% over the next three years, surpassing the global average of 3% [1][2] - East and West Africa are highlighted as regions with particularly strong growth due to political stability and accelerated industrialization [1][2] Cost Structure and Profitability - There is significant variation in limestone costs across Africa, generally higher than domestic costs, with coal resources concentrated in South Africa and Mozambique [1][8] - Fuel costs account for 60% of total production costs, directly impacting profitability [1] - Cement prices vary significantly by region, with gross margins of approximately $40-$60 per ton and net profits of $15-$30 per ton [1][17] Market Dynamics - The competitive landscape is shifting, with local companies like Dangote expanding aggressively while international giants like Holcim are gradually exiting the market [1][12][13] - The North African market is experiencing overcapacity and slower growth, while Sub-Saharan Africa, particularly populous countries like Nigeria, Ethiopia, and Tanzania, is seeing robust demand [2][4] Company Insights - Huaxin Cement has a broad presence in Africa with a total capacity of nearly 40 million tons, while West China Cement has a smaller scale [1][10] - Huaxin's production capacity is expected to reach close to 40 million tons by the end of 2025 or early 2026 [10] - Local companies like Dangote are the largest producers, with plans to expand capacity to 100 million tons [12] Regional Economic Conditions - East Africa's rapid economic development is attributed to political stability and industrial growth, with countries like Ethiopia and Kenya leading the way [3] - Central Africa, including countries like the Central African Republic and the Democratic Republic of the Congo, faces economic challenges due to conflict and resource scarcity [5] Challenges in the Market - Operating in Africa presents challenges such as policy risks, weak infrastructure, market fragmentation, cultural differences, and reliance on imported supply chains [21] - Chinese companies often adopt joint venture models, holding approximately 80% of shares in local operations [20] Pricing and Profitability Analysis - Cement prices in North Africa range from $90 to $150 per ton, while prices in Sub-Saharan Africa are generally higher, with Nigeria averaging around $120 per ton [16] - Huaxin's profitability varies by country, with net profits in Malawi reaching up to 250-300 RMB per ton despite significant currency depreciation [26][30] Future Outlook - The overall market environment is expected to remain stable, with Huaxin and other companies gradually increasing their market share and profitability despite challenges like currency fluctuations [28] - The Nigerian cement market is projected to demand around 35 million tons, with major players like BOA, BUA, and Huaxin dominating the landscape [29] Conclusion - The African cement industry presents significant growth opportunities, particularly in East and West Africa, but companies must navigate a complex landscape of costs, competition, and local market dynamics to succeed [1][2][21]

Summary of Key Points from the Conference Call on African Cement Industry Industry Overview - **Cement Consumption Disparity**: Significant differences in per capita cement consumption across Africa, with North Africa being much higher than other regions, indicating substantial growth potential in urbanization, especially in East, Central, and Southern Africa where demand could increase by over three times [1][2] - **Low Capacity Utilization**: The cement market in Africa operates at a low capacity utilization rate of 50%-60%, yet prices remain high at $100-$200 per ton due to uneven resource distribution, poor infrastructure, high logistics costs, and sparse capacity distribution [1][4] Market Dynamics - **Chinese Companies' Market Share**: Chinese companies, such as Huaxin and Western Cement, hold less than 10% market share in Africa. Their entry has not triggered price wars but has maintained rational competition, with local prices in Mozambique remaining high [1][5] - **Local Leaders' Expansion Limitations**: Nigerian cement giants Dangote and BUA are nearing the end of their expansion phase and are diversifying into other sectors, facing high debt levels and financing costs that limit further large-scale expansion in cement [1][6][7] Competitive Landscape - **European Companies Exiting**: European firms like LafargeHolcim and Heidelberg are exiting the African market, shifting focus to new building materials and decarbonization, which presents opportunities for Chinese companies to fill the market gap through improved efficiency and cost reduction [3][9] - **Profitability of Chinese Firms**: Chinese companies in Africa exhibit strong profitability, with a stable demand growth rate of approximately 4% per year, contrasting with declining domestic demand in China. They benefit from superior cost control and operational efficiency [11] Operational Insights - **Huaxin and Western Cement Operations**: Huaxin Cement has a total clinker capacity of about 20 million tons, while Western Cement has around 10 million tons. Both companies face uncertainties in profitability due to exchange rate fluctuations and regional price volatility [1][8] - **Ethiopian Market Potential**: Ethiopia's economy is growing rapidly at 5-7% annually, with a low urbanization rate of 20-30%, indicating significant future demand. Western Cement holds a 40% market share in Ethiopia, but currency depreciation has affected pricing and margins [15][16] Financial Implications - **Impact of Currency Fluctuations**: Currency volatility in Africa has impacted Chinese companies, with estimated losses of 100-150 million yuan in Q1 2025. However, measures such as financial hedging have been implemented to mitigate these risks, leading to a positive outlook for future financial performance [17] Conclusion - The African cement market presents substantial growth opportunities driven by urbanization and demand disparities. Chinese companies are well-positioned to capitalize on these opportunities, especially as European competitors exit the market. However, challenges such as currency fluctuations and local competition remain critical factors to monitor.

Investment Rating - The investment rating for the cement industry in Africa is "Positive" and is maintained [11] Core Insights - Africa has a low urbanization rate and underdeveloped infrastructure, indicating significant long-term demand potential for cement, with a projected future demand of nearly 800 million tons if benchmarked against current North African per capita consumption [3][20] - Domestic leading companies maintain a net profit of over 100 RMB per ton, suggesting that Chinese companies entering Africa will benefit from technological, process, and management advantages, leading to potentially higher profitability [3][20] Summary by Sections Current Demand and Medium-term Potential - The current cement demand in Africa is projected to reach 250 million tons in 2024, with a growth rate closely aligned with GDP growth [7][20] - The urbanization rate in Africa is similar to that of China in the 1990s, but economic growth and urbanization progress are expected to lag behind China's golden years [7][20] Low Capacity Utilization and High Price Paradox - Cement prices in Africa are 3-6 times higher than in China, yet capacity utilization is below 60% due to various constraints including outdated equipment and resource scarcity [7][35] - The paradox arises from factors such as uneven coal and electricity supply, outdated local equipment, and low cement density, which allows for high pricing despite low utilization [7][35][42] Impact of Chinese Enterprises on Local Pricing - Chinese companies currently hold less than 10% market share in Africa, reducing the likelihood of rapid price wars [8][55] - The entry of Chinese firms is profit-driven rather than price-driven, as they possess significant cost advantages over local companies [8][55] Local Enterprises' Capacity Expansion Plans - Major local players like Dangote and BUA have completed large-scale expansions, with future growth expected to be limited and focused on diversification into other sectors [8][68] - Dangote's expansion plans are primarily long-term and will not significantly impact current market prices [8][68] Comparison of Huaxin Cement and Western Cement in Africa - Both companies entered the African market around the same time, with Huaxin's capacity projected at 20.5 million tons and Western Cement at 9.8 million tons by mid-2025 [8][68] - Huaxin focuses on mergers and technological upgrades, while Western Cement emphasizes new construction [8][68] Reasons for European Cement Giants Exiting Africa - European companies like LafargeHolcim are shifting focus to greener building materials and have found their operational capabilities in Africa lacking compared to local firms [8][9] - The sale of assets to more competitive Chinese subsidiaries is seen as a more cost-effective strategy [8][9] Profitability in African Markets for Chinese Enterprises - The African market presents a long-term growth opportunity, with demand expected to expand significantly [8][7] - Chinese firms leverage their operational advantages to improve profitability through acquisitions and technological upgrades [8][7] Cement Supply and Demand in Nigeria - Nigeria's cement market is characterized by high concentration, with Dangote holding about 50% market share and a stable pricing foundation [8][9] Cement Supply and Demand in Ethiopia - Ethiopia shows strong GDP growth and low urbanization, indicating substantial construction potential [8][9] Impact of Currency Fluctuations on Chinese Enterprises - Currency fluctuations have led to exchange losses for Chinese companies operating in Africa, but strategies are being developed to mitigate these risks [10][9]

华新水泥(06655)发布公告，将于2025年12月24日派发截至2025年9月30日止前三季度股息每股0.372827 港元。 ...

智通财经APP讯，华新水泥(06655)发布公告，将于2025年12月24日派发截至2025年9月30日止前三季度 股息每股0.372827港元。 ...

第 1 頁 共 2 頁 v 1.1.1 EF002 免責聲明 | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 | 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 | | --- | --- | | | 股票發行人現金股息（可選擇貨幣）公告 | | 發行人名稱 | 華新水泥股份有限公司 | | 股份代號 | 06655 | | 多櫃檯股份代號及貨幣 | 不適用 | | 相關股份代號及名稱 | 不適用 | | 公告標題 | 截至二零二五年九月三十日止前三季度股息 | | 公告日期 | 2025年10月24日 | | 公告狀態 | 更新公告 | | 更新/撤回理由 | 股息資料更新 | | 股息信息 | | | 股息類型 | 其他 | | | 二零二五年前三個季度 | | 股息性質 | 普通股息 | | 財政年末 | 2025年12月31日 | | 宣派股息的報告期末 | 2025年9月30日 | | 宣派股息 | 每 股 0.34 RMB | | 股東批准日期 | 2025年11月12日 | | 香港 ...

DIVIDEND CURRENCY ELECTION FORM FOR THE FIRST THREE QUARTERS ENDED 30 SEPTEMBER 2025 NAME(S) AND ADDRESS OF REGISTERED H-SHARE HOLDER(S) THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION If you are in any doubt as to any aspect of this document or as to the action to be taken, you should consult your stockbroker or other registered dealer in securities, bank manager, solicitor, professional accountant or other professional adviser. 此乃要件 請即處理 對本文件任何內容或應採取之行動 ，應諮詢 閣下之股票經紀或其他證券交易商、銀行經理、律師、專業會計師或 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 華新建材集團股份有限公司 HUAXIN BUILDING MATERIALS GROUP CO., LTD.* （於中華人民共和國註冊成立的股份有限公司） （股份代號：6655 ） 本公司將於2025年11月20日（星期四）向名列本公司股東名冊的 H 股股東派付截 至二零二五年九月三十日止前三季度股利，每股股份現金股利人民幣0.34元（含稅 ）。H 股股利以港幣或美元支付，每股H股股利約為港幣0.372827元（含稅）或美 元0.0479774（含稅）。股利將由收款代理人於2025年12月24日（星期三）支付。 為釐定有權收取截至二零二五年九月三十日止前三季度股利的 H 股股東名單，本 公司將於2025年11月18日（星期二）至2025年11月20日（星期四）（包括首尾兩天 ）暫停辦理 H 股股份過戶登記手續。 茲提述華新建材集團股份有限公司（「本公司」）分别於2025年11月12日及2025年 10月 ...