HUAXIN CEMENT(SH:600801) Tianfeng Securities·2024-10-28 08:11Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company is experiencing short-term profit pressure but has strong growth potential in overseas and non-cement businesses [2][4]. - The third quarter saw a decline in net profit by 40.17% year-on-year, with a net profit of 408 million yuan [1][2]. - The company has made significant strides in its overseas cement business, which now accounts for 41.3% of its cement revenue, up 17.7 percentage points year-on-year [2][4]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenues of 2,471.9 million yuan, a year-on-year increase of 2.29%, while net profit decreased by 39.26% to 1,138 million yuan [1]. - The gross margin for the first three quarters was 24.02%, down 2.28 percentage points year-on-year, with a net margin of 6.39%, down 2.81 percentage points [3]. - The company’s cash flow from operations for the first three quarters was 3,382 million yuan, a decrease of 121 million yuan year-on-year [3]. Business Segment Insights - The company’s overseas cement operations have expanded significantly, with production capacities reaching 15.44 million tons per year in Central Asia [2]. - Non-cement business segments, including aggregates and concrete, are expected to contribute positively to the overall performance despite domestic cement demand decline [4]. Valuation Metrics - The company’s projected net profits for 2024-2026 are revised to 1,831.6 million yuan, 2,093.97 million yuan, and 2,437.61 million yuan respectively, with corresponding P/E ratios of 15, 13, and 11 [4][5]. - The current dividend yield stands at 4.02%, with a dividend payout ratio of 40% [4].