WANNIANQING(SZ:000789) Zheng Quan Zhi Xing·2025-06-16 11:52Core Viewpoint - Jiangxi Wannianqing Cement Co., Ltd. has been rated AA+/Stable by China Chengxin International, reflecting its strong competitive position in the Jiangxi province cement market, robust limestone reserves, effective cost control, and solid debt repayment capacity [4][5][11]. Company Overview - Jiangxi Wannianqing Cement is a leading cement producer in Jiangxi province, primarily engaged in the production and sale of silicate cement, ready-mixed concrete, aggregates, and new wall materials [4][11]. - The company has a total cement production capacity of 26 million tons per year and operates six major production bases in Jiangxi [14][15]. Financial Performance - In 2024, the company reported total revenue of 5.957 billion yuan, a decrease of 27.27% year-on-year, primarily due to declining sales prices and volumes [6][22]. - The company's net profit for 2024 was 0.19 billion yuan, reflecting significant pressure on profitability due to market conditions [6][22]. - The operating profit margin decreased to 17.33% in 2024, down from 18.43% in 2023 [6][22]. Market Position - The company holds a market share of over 25% in the Jiangxi province cement market, maintaining its leading position despite a 20.45% decline in sales volume in 2024 [17][18]. - The average selling price of cement decreased by approximately 22 yuan per ton in 2024 due to intense market competition [19][20]. Industry Outlook - The cement industry in China is expected to face continued downward pressure in 2024, with demand declining for the fourth consecutive year [9][10]. - Despite potential recovery in demand due to macroeconomic policies, the overall industry outlook remains weak, with price stabilization unlikely in the near term [9][10]. Operational Strengths - The company benefits from abundant limestone resources, which account for nearly 100% of its supply, and has established long-term partnerships with coal suppliers to manage production costs [20][21]. - The company has a strong brand presence and competitive advantage in the Jiangxi market, supported by its early adoption of advanced cement production technologies [11][14]. Risks and Challenges - The company faces challenges from weakened downstream demand, high coal prices, and long payment cycles in its ready-mixed concrete business, which could impact overall financial stability [5][11][22]. - The ongoing economic recovery in China is uncertain, and external shocks may further complicate the market environment for the cement industry [8][9].