ACC(600585) 天风证券·2024-10-30 08:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 32.47 CNY, reflecting a 0.9 times PB for 2024 [4][6]. Core Views - The company reported a net profit of 1.873 billion CNY in Q3, a year-on-year decline of 15.13%. For the first three quarters, the revenue and net profit attributable to the parent company were 6.815 billion CNY and 5.198 billion CNY, respectively, representing declines of 31.27% and 40.05% year-on-year [1]. - The report indicates that the gross margin has shown growth both year-on-year and quarter-on-quarter, suggesting a potential bottoming out of the industry and highlighting the value advantage of leading companies in the new cycle [3]. - The company is expected to see improved performance in Q4 and next year due to rising cement prices and a favorable cost structure, with a projected increase in net profit for 2024-2026 [2][4]. Financial Performance Summary - The overall gross margin for the first three quarters was 19.54%, with a Q3 gross margin of 20.78%, reflecting increases of 1.21 percentage points and 4.60 percentage points year-on-year, respectively [3]. - The company’s operating cash flow for the first three quarters was 10.348 billion CNY, an increase of 6.47 billion CNY year-on-year, with a cash collection ratio of 118.58% [3][11]. - The company’s total assets as of Q3 2023 were 246.189 billion CNY, with a debt ratio of 21.46% [3][10]. Market Position and Outlook - The company has significant production capacity, including 27.4 million tons of clinker and 39.9 million tons of cement, which provides a competitive edge in the market [4]. - The report anticipates a strong willingness from the company to raise prices in the current cycle, supported by recent government initiatives to boost infrastructure spending, which may enhance cement demand [2][4].