HUAXIN CEMENT(SH:600801) Tianfeng Securities·2024-09-02 10:30Investment Rating - The report maintains a "Buy" rating for the company with a target price of 13.69 CNY, reflecting a 13x PE for 2024 [2][4]. Core Insights - The company's revenue for the first half of 2024 was 16.24 billion CNY, a slight increase of 2.56% year-on-year, while the net profit attributable to shareholders decreased by 38.7% to 731 million CNY [1][2]. - Domestic cement operations are under pressure, but overseas performance continues to grow, with overseas cement revenue increasing by 55.41% year-on-year [1]. - Non-cement business revenue grew by 24.7% year-on-year, contributing significantly to overall performance [2]. Financial Performance Summary - The company reported a net profit of 731 million CNY for H1 2024, down 38.7% year-on-year, with a non-recurring net profit of 680 million CNY, down 41.88% [1]. - The cement business generated 8.67 billion CNY in revenue, a decline of 11.25% year-on-year, with domestic revenue falling by 31.57% and international revenue rising by 55.41% [1]. - The company sold 28.48 million tons of cement and clinker, a decrease of 4.9% year-on-year, while overseas sales increased by 47% [1]. Business Segment Performance - The non-cement segment achieved revenue of 7.57 billion CNY, with the aggregate business growing by 36.96% and concrete business by 24.21% [2]. - The gross margin for the non-cement business was 47.41%, reflecting a year-on-year increase of 2.29 percentage points [2]. - The overseas cement business accounted for 41.3% of total cement revenue, an increase of 17.7 percentage points year-on-year [1]. Future Outlook - The company is expanding its overseas operations, with several projects underway in Mozambique, Malawi, Zambia, and South Africa, expected to add significant production capacity [1]. - The report suggests that the non-cement and overseas business segments have promising growth prospects, supporting the long-term growth outlook for the company [2].