Core Viewpoint - CICC has downgraded the EPS estimates for China Resources Cement Technology (01313) for 2025 and 2026 by 66% and 48% to 0.06 CNY and 0.11 CNY respectively, due to over 100 million CNY fixed asset impairment in the first half of the year, which was not present in the same period last year [1] Group 1: Financial Performance - The company's Q3 2025 performance was in line with expectations, with a revenue decline of 11% year-on-year to 4.86 billion CNY and a net profit drop of 83% to 24.32 million CNY [2] - In Q3 2025, the total sales volume of cement clinker decreased by 5.3% year-on-year to 14.12 million tons, which was a smaller decline compared to the industry average of 6.6% [2] - The average price per ton of cement clinker in Q3 2025 was 205 CNY, with a cost of 173 CNY per ton, resulting in a gross profit of 32 CNY per ton, remaining at a low level due to weak seasonal demand [2] Group 2: Business Segments - The sales volume of concrete and aggregates grew rapidly in Q3 2025, with increases of 11% and 32% year-on-year respectively [3] - The gross profit per ton for concrete increased by 7 CNY to 46 CNY, while the gross profit for aggregates decreased by 5 CNY year-on-year to 8.3 CNY [3] Group 3: Cost and Expenses - The total cost per ton of cement clinker increased by 3 CNY year-on-year to 50 CNY, with sales, management, and financial expense ratios rising by 0.2 percentage points, 1.9 percentage points, and decreasing by 0.5 percentage points respectively [4] Group 4: Market Outlook - The industry may see price increases in November and December, with companies actively implementing staggered kiln shutdowns, indicating potential for price recovery [5] - Looking ahead to next year, if the industry strictly limits overproduction, the utilization rate of clinker capacity could rise to around 60%, enhancing profit potential in the southern market [5] - The company has fully accounted for fixed asset impairments this year and will focus on core operations, suggesting potential for performance recovery in 2025 due to a low base [5]
中金：维持华润建材科技(01313)跑赢行业评级 下调目标价至2.2港元