Zhi Tong Cai Jing·2025-10-23 03:35Core Viewpoint - Huaxin Cement's stock has declined over 6%, but it has still seen a cumulative increase of over 110% this year, with a current price of 15.76 HKD and a trading volume of 52.41 million HKD [1] Financial Performance - Huaxin Cement plans to hold a board meeting on October 24 to approve quarterly results [1] - The company is expected to achieve a comprehensive gross profit of around 100 CNY per ton for July-August, compared to 72 CNY in the same period last year [1] - Overall overseas cement profitability remains strong, with significant recovery in previously weak regions like Central Asia [1] Market Expectations - Market consensus anticipates operating profits of 2.7 billion CNY and 3.7 billion CNY for 2025-2026, corresponding to PE ratios of 12x and 9x [1] - For 2026, overseas earnings are expected to contribute 2-2.5 billion CNY in profit, with a hypothetical PE of 15x for overseas segments and 10x for domestic segments, indicating a potential market cap of 50 billion CNY [1] Strategic Outlook - Following the unexpected consolidation of Nigerian assets, Huaxin Cement has plans for independent listings of its overseas assets, which would have limited dilution effects [1] - The independent listing is expected to enhance the valuation of overseas cement assets and facilitate accelerated overseas acquisitions [1] - If domestic market conditions improve, there is potential for upward adjustments in profitability, maintaining a strong recommendation for the stock [1]