SHANGFENG CEMENT(SZ:000672) Zhong Guo Zheng Quan Bao·2025-12-18 03:32Core Viewpoint - The company has achieved industry-leading ROE for five consecutive years through operational efficiency rather than scale expansion, positioning its cement business as a cash flow fortress while strategically investing in new sectors like semiconductors [1][4]. Group 1: Cement Business Performance - The company has maintained an average ROE of 17.83% over the past five years, with sales gross margin consistently ranking among the top in the industry [3]. - The company controls over 900 million tons of limestone resources, ensuring cost efficiency and a robust national layout that enhances risk resilience [3]. - In 2024, the company's operating cash flow is projected to reach 1.039 billion yuan, with a year-on-year growth of 23.99% in the first half of 2025 [3]. Group 2: Strategic Investment in Semiconductors - The company has invested over 2 billion yuan in the semiconductor sector, focusing on creating a chain ecosystem that includes chip design, manufacturing, and testing [6]. - The company’s equity investment business contributed over 22% to net profit in 2024, with cumulative profits of 530 million yuan over five years [6]. - Recent investments include successful listings of companies in the semiconductor field, indicating a shift from financial investment to deeper industrial collaboration [7]. Group 3: Future Growth Strategy - The company aims to develop a synergistic model comprising traditional building materials, equity investment, and new material growth businesses, referred to as the "three driving forces" [9]. - The strategic plan includes enhancing operational efficiency in the cement business while preparing to invest over 3 billion yuan in equity assets [9]. - The company is transitioning from being an "efficiency champion" in a cyclical industry to an "industry enabler" focused on high-quality transformation [9].