qscc(SH:600425) Zheng Quan Shi Bao Wang·2025-05-07 09:11Core Viewpoint - The construction of the China-Kyrgyzstan-Uzbekistan railway has commenced in Kyrgyzstan, marking a significant step in the project and is expected to positively impact the cement demand in southern Xinjiang, particularly benefiting Qingsong Jianhua, a leading cement manufacturer in the region [1][3][4]. Group 1: Company Overview - Qingsong Jianhua is one of the oldest cement manufacturers in Xinjiang and the largest in the Xinjiang Production and Construction Corps, with a cement production capacity of 15 million tons [2]. - The company has established itself as a major supplier of various types of special cements in the region, including oil well cement and road cement [2]. - Qingsong Jianhua has strategically positioned its new dry-process cement production lines across various locations in Xinjiang, enhancing its market influence [2]. Group 2: Financial Performance - In its 2024 annual report, Qingsong Jianhua reported a slight decline in revenue to 4.328 billion yuan, down 3.6% year-on-year, with a net profit of 354 million yuan [1][2]. - The company has a strong commitment to shareholder returns, proposing a cash dividend of 160 million yuan for the 2024 fiscal year, which reflects a cumulative dividend payout of approximately 1.581 billion yuan since its listing in 2003 [5]. Group 3: Impact of Railway Construction - The construction of the China-Kyrgyzstan-Uzbekistan railway is expected to increase cement demand in southern Xinjiang, with estimates suggesting a demand increase of 1.66 to 2.13 million tons annually for Qingsong Jianhua [3]. - The railway project will utilize approximately 498,000 tons of cement for its construction within Kyrgyzstan, further driving regional demand [3]. - The opening of the railway is anticipated to enhance connectivity between China and various international markets, reducing transportation costs and time, which will stimulate infrastructure demand in the southern Xinjiang region [4].