Zhi Tong Cai Jing·2025-07-08 02:39Global Perspective - The demand for cement is determined by urbanization and population growth, with regions like mainland China, Central Asia, Southeast Asia, and North Africa showing the highest demand growth since the 1990s, characterized by a decentralized industry structure and intense price competition [2] - Europe, having completed urbanization in the 1970s, experienced a shift to a highly concentrated industry structure, leading to new price highs after demand peaked [2] Operational Perspective - From 2021 to 2024, domestic cement companies are accelerating their overseas expansion, increasing production capacity from 45.03 million tons to 87.59 million tons, with private and foreign-backed companies leading the industry due to better market mechanisms [3] - The differentiation in overseas profitability among companies post-2025 will depend on their operational capabilities, particularly in site selection [3] Financial Perspective - Effective management of foreign currency liabilities can help mitigate exchange rate fluctuations, as demonstrated by Dangote in Nigeria, where despite significant currency depreciation, the actual profitability remained substantial [4] - The mismatch between local currency settlements and foreign currency liabilities leads to exchange gains or losses, and companies with strong management of foreign currency exposure can better convert accounting profits into actual profits [4] - A high proportion of foreign debt in USD suggests that a gradual easing of USD strength may provide additional profit flexibility for companies [4]