TSC(SZ:000877) HTSC·2025-03-27 08:18Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 8.55 RMB [8] Core Views - The company reported a revenue of 86.995 billion RMB in 2024, a decrease of 18.98% year-on-year, and a net profit attributable to shareholders of -0.5984 billion RMB, down 130.45% year-on-year [1] - In Q4 2024, the company achieved a revenue of 25.536 billion RMB, a year-on-year decrease of 5.40% but a quarter-on-quarter increase of 17.35%, with a net profit of 3.149 billion RMB, up 64.52% year-on-year [1][2] - The average selling price (ASP) of cement in Q4 2024 was 269 RMB per ton, reflecting an 11% increase quarter-on-quarter, leading to a gross profit margin of 24.79%, up 5.32 percentage points year-on-year [2] - The company has strengthened cost control, with a total non-recurring profit and loss of 1.653 billion RMB in 2024, an increase of 19.8% year-on-year, primarily from asset disposals and government subsidies [3] Summary by Sections Revenue and Profitability - The company’s revenue for 2024 was 86.995 billion RMB, down 18.98% year-on-year, with a net profit of -0.5984 billion RMB, reflecting a significant decline [1] - In Q4 2024, the company’s revenue was 25.536 billion RMB, showing a year-on-year decrease of 5.40% but a quarter-on-quarter increase of 17.35% [1] - The average selling price of cement in Q4 2024 was 269 RMB per ton, leading to a gross profit of 69 RMB per ton, which is a 30 RMB increase quarter-on-quarter [2] Cost Management - The company’s expense ratio for 2024 was 15.74%, an increase of 2.4 percentage points year-on-year, while the Q4 2024 expense ratio was 11.52%, a decrease of 0.77 percentage points year-on-year [3] - Non-recurring gains for 2024 amounted to 1.653 billion RMB, up 19.8% year-on-year, mainly from asset disposals and government subsidies [3] Market Outlook - As of late March 2025, the national average cement price was 407 RMB per ton, showing resilience despite a 4.1% decrease month-on-month and a 10.2% increase year-on-year [4] - The company is expected to continue enhancing peak-shifting management, which may help in balancing supply and demand in the cement market [5]