SHANGFENG CEMENT(SZ:000672) Soochow Securities·2025-04-29 05:47Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company's main business profitability is stabilizing and recovering, with a significant increase in the dividend payout ratio [1] - The company achieved total operating revenue of 5.448 billion yuan in 2024, a year-on-year decrease of 14.83%, and a net profit attributable to shareholders of 627.45 million yuan, down 15.70% year-on-year [1] - The company plans to distribute a cash dividend of 6.3 yuan per 10 shares (including tax), resulting in a dividend payout ratio of 95.7% [1] Summary by Sections Financial Performance - In 2024, the company realized cement and clinker sales of 20.75 million tons, a decrease of 3% year-on-year, with a corresponding gross profit per ton of 55 yuan, down 6 yuan year-on-year [1] - The gross profit margin for 2024 and Q1 2025 is expected to be 26.2% and 27.4%, respectively, with year-on-year changes of -1.6 and +5.1 percentage points [1] - The company’s operating cash flow for 2024 is projected at 1.039 billion yuan, a decrease of 6.9% year-on-year, while Q1 2025 is expected to show a significant increase of 686.3% year-on-year [1] Cost Control and Efficiency - The company has successfully reduced costs, with clinker energy costs decreasing by 2.12 yuan per ton year-on-year, and manufacturing costs also declining due to optimized raw material ratios [1] - The company maintained a good control over expenses, with a period expense ratio of 15.9% in 2024, an increase of 0.8 percentage points year-on-year [1] Future Outlook - The company has a five-year plan aiming for new growth drivers, with a target for new material business to account for over 20% of revenue by 2029 [1] - The forecast for net profit attributable to shareholders for 2025-2027 is 762 million, 897 million, and 996 million yuan, respectively, with corresponding P/E ratios of 12, 10, and 9 times [1]