HUAXIN CEMENT(SH:600801) Minsheng Securities·2024-10-27 06:41Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 13.20 CNY [6]. Core Views - The company reported a revenue of 24.719 billion CNY for the first three quarters of 2024, a year-on-year increase of 2.29%, while the net profit attributable to shareholders decreased by 39.26% to 1.138 billion CNY [1]. - Despite a weak supply-demand environment in the cement industry, the company outperformed the industry average, with overseas cement revenue increasing by 55% in the first half of 2024, accounting for 41% of its cement business [2]. - The company's "Cement+" product line saw a revenue increase of 29.4% in the first half of 2024, contributing 42.5% to total revenue and 57.9% to gross profit [2]. - The company is expected to maintain a forward-looking strategy in overseas markets, "Cement+", and low-carbon initiatives, with projected net profits of 1.79 billion CNY, 2.05 billion CNY, and 2.25 billion CNY for 2024-2026 [4]. Financial Performance - For Q3 2024, the company achieved a revenue of 8.482 billion CNY, a year-on-year increase of 1.78%, while the net profit attributable to shareholders was 408 million CNY, down 40.17% [1]. - The gross margin for Q1-Q3 2024 was 24.02%, an increase of 2.28 percentage points year-on-year, while the net margin was 6.39%, a decrease of 2.81 percentage points [1]. - The company's operating cash flow remained stable at 3.382 billion CNY, a year-on-year decrease of 3.46% [4]. - Accounts receivable increased by 35.32% year-on-year, accounting for 15.04% of revenue, indicating a potential risk related to the expansion of the concrete business [4]. Cost and Expenses - The company's expense ratio rose to 13.69%, an increase of 1.14 percentage points year-on-year, with financial expenses in Q3 2024 reaching 306 million CNY, up 41% quarter-on-quarter and 42% year-on-year [3].