ACC(SH:600585) Huachuang Securities·2025-04-06 13:40Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 27.36 CNY per share [2][8]. Core Insights - The company reported a revenue of 91.03 billion CNY for 2024, a year-on-year decrease of 35.51%. The net profit attributable to the parent company was 7.70 billion CNY, down 26.19% year-on-year [2][4]. - The company successfully increased cement prices, leading to a significant recovery in net profit in Q4 2024, with a net profit of 2.50 billion CNY, an increase of 42.27% year-on-year [8]. - The company plans to maintain a stable dividend payout ratio, with a commitment to distribute at least 50% of net profit as cash dividends and share buybacks from 2025 to 2027 [8]. Financial Performance Summary - Revenue and Profitability: - 2024 revenue: 91,030 million CNY, down 35.51% year-on-year - 2024 net profit: 7,696 million CNY, down 26.19% year-on-year - 2024 gross margin: 21.70%, up 5.14 percentage points year-on-year [4][8]. - Future Projections: - Expected revenue growth for 2025: 92,967 million CNY (2.1% increase) - Expected net profit for 2025: 9,666 million CNY (25.6% increase) - EPS projections for 2025-2027: 1.82, 2.11, and 2.29 CNY per share respectively [4][8]. - Valuation Metrics: - 2025 PE ratio: 13x - 2026 PE ratio: 11x - 2027 PE ratio: 11x [8]. Market Position and Competitive Landscape - The company’s cement and clinker revenue for 2024 was 65.85 billion CNY, a decrease of 15.51% year-on-year, with a sales volume of 26.8 million tons, down 5.96% year-on-year [8]. - The aggregate business revenue increased by 21.4% year-on-year, indicating a diversification in revenue streams [8]. Dividend Policy - The company has a stable dividend policy, with a historical payout ratio around 50% from 2022 to 2024, and plans to maintain this ratio in the coming years [8]. Conclusion - The report indicates a cautious optimism for the company, driven by price increases and a commitment to shareholder returns, despite recent declines in revenue and profit [2][8].