HUAXIN CEMENT(600801) Dongguan Securities·2025-04-30 06:52Investment Rating - The report assigns an "Accumulate" rating for Huaxin Cement, indicating a positive outlook for the company's stock performance in the near term [1]. Core Views - Huaxin Cement is actively expanding its overseas operations, which opens up significant growth opportunities. The company aims to double its overseas cement production capacity from 25 million tons to approximately 50 million tons by 2025 [6][31]. - Despite a decline in cement sales, the company has seen notable growth in its non-cement businesses, such as aggregates and concrete, which have become important contributors to overall profitability [6][24]. - The company's revenue has shown a consistent upward trend, with a record high of 34.217 billion yuan in 2024, reflecting resilience in a challenging industry environment [36]. Summary by Sections 1. Company Overview - Huaxin Cement, founded in 1907, is one of China's oldest cement companies and has evolved into a global building materials group with operations in 17 provinces and 16 countries [13][14]. 2. Integrated Development - The company has achieved vertical integration by developing a full industry chain that includes cement, concrete, aggregates, and new building materials, enhancing its competitive advantage [15][17]. 3. Sales and Profitability - Cement sales declined by 22% in 2022 but showed a slight recovery in 2023. In 2024, the decline was limited to about 2%, outperforming the industry average [6][24]. - Non-cement business revenues, particularly from concrete and aggregates, have increased significantly, contributing to overall profitability [24][26]. 4. Overseas Expansion - The company has established a presence in 12 countries and aims to enhance its international footprint, particularly in Central Asia and Africa, where demand for cement is expected to grow [6][31]. - In 2024, overseas revenue reached 7.984 billion yuan, a 47% increase year-on-year, with cement sales growing by 37% [31][34]. 5. Financial Performance - The company achieved a net profit of 2.953 billion yuan in 2024, despite a decline from the previous year, showcasing its ability to maintain profitability amid industry challenges [36][39]. - The weighted average return on equity (ROE) for 2024 was 8.16%, positioning the company favorably within the industry [39]. 6. Investment Recommendations - The report forecasts EPS for 2025-2027 to be 1.24 yuan, 1.43 yuan, and 1.52 yuan, respectively, with corresponding PE ratios indicating an attractive valuation [46][51]. - The company maintains a stable dividend payout ratio of around 40%, providing a reliable return for shareholders [43][44].