HUAXIN CEMENT(600801) 国金证券·2025-02-28 05:50Investment Rating - The report gives a "Buy" rating for the company, with a target price of 15.51 RMB based on a 13x valuation for 2025 [3]. Core Views - The company is well-positioned for growth in overseas markets, particularly in Africa, South America, and the Middle East, benefiting from its early entry and flexible decision-making [2][3]. - The domestic market is also strong, with a significant contribution from integrated operations, and the company is leading in low-carbon initiatives [3]. Summary by Sections Company Overview - Founded in 1907, the company specializes in cement, aggregates, and concrete, with a strong domestic presence in Hubei and Hunan provinces and international operations in Africa and the Middle East. In the first three quarters of 2024, the company achieved revenue of 24.719 billion RMB, a year-on-year increase of 2.3%, while net profit attributable to shareholders was 1.138 billion RMB, a decrease of 39.3% [1]. Overseas Expansion - The company has a significant overseas presence, with a cement grinding capacity of 22.54 million tons and a clinker capacity of 15.44 million tons as of 2024H1. The long-term goal is to exceed 50 million tons. The company is strategically expanding into Nigeria and Brazil, with Nigeria being a key market due to its high economic concentration and limited competition [2][3]. Domestic Market - The company has strengthened its domestic market position, with integrated operations contributing nearly 50% to gross profit. Since 2020, it has diversified into non-cement businesses, which have helped mitigate the impact of declining cement demand [3]. Profit Forecast and Valuation - The company is expected to see revenue growth from 34.396 billion RMB in 2024 to 42.268 billion RMB in 2026, with corresponding net profits projected to rise from 2.101 billion RMB to 3.117 billion RMB. The report anticipates a PE ratio of 12, 10, and 8 for the years 2024, 2025, and 2026, respectively [3][6].