ACC(600585) INDUSTRIAL SECURITIES·2024-08-31 06:09Investment Rating - The report maintains an "Accumulate" rating for Conch Cement (600585) [1] Core Views - The company reported a revenue of 45.566 billion yuan for the first half of 2024, a year-on-year decrease of 30.44%, primarily due to falling cement prices and reduced clinker revenue. The net profit attributable to shareholders was 3.326 billion yuan, down 48.56% year-on-year [2][3] - In Q2, the company achieved a revenue of 24.238 billion yuan, a year-on-year decline of 28.92%, with a net profit of 1.823 billion yuan, down 53.40% year-on-year [2] - The company’s capital expenditure for the first half of 2024 was approximately 7.664 billion yuan, mainly for project construction investments [2] Financial Performance Summary - The company’s self-produced 42.5 and above grade cement, 32.5 grade cement, clinker, aggregates, and ready-mixed concrete generated revenues of 23.687 billion yuan, 3.878 billion yuan, 2.645 billion yuan, 2.191 billion yuan, and 1.178 billion yuan respectively, with year-on-year changes of -22.76%, -23.26%, -34.29%, +29.84%, +20.60%, and -64.08% [2] - The average selling price of self-produced cement clinker in the first half of 2024 was 240 yuan/ton, down 66 yuan/ton year-on-year, while the unit cost was 188 yuan/ton, down 36 yuan/ton year-on-year [2] - The overall gross profit margin for the first half of 2024 was 18.93%, a decrease of 0.53 percentage points year-on-year [3] Profitability and Cash Flow - The company’s net profit margin for the first half of 2024 was 7.43%, down 2.98 percentage points year-on-year, with an operating cash flow net amount of 6.871 billion yuan, an increase of 1.793 billion yuan year-on-year [3] - The report forecasts net profits attributable to shareholders for 2024-2026 to be 8.652 billion yuan, 9.414 billion yuan, and 10.258 billion yuan respectively, with corresponding PE ratios of 12.6, 11.5, and 10.6 times [3]