China Post Securities·2025-07-16 12:39Investment Rating - The report assigns a "Buy" rating for the stock, indicating an expected relative increase of over 20% compared to the benchmark index within six months [11]. Core Insights - The company, Huaxin Cement, is projected to achieve a net profit attributable to shareholders of between 1.096 billion and 1.132 billion yuan for the first half of 2025, representing a year-on-year increase of 50% to 55% [5]. - The second quarter of 2025 saw a significant performance improvement, with a net profit of 880 million yuan, marking a 59% year-on-year growth [5]. - The company has established a strong overseas presence, with production capacity exceeding 25 million tons across 12 countries, contributing significantly to its profitability [6]. Company Overview - Latest closing price: 13.25 yuan - Total shares: 2.079 billion, circulating shares: 1.344 billion - Total market capitalization: 27.5 billion yuan, circulating market capitalization: 17.8 billion yuan - 52-week high/low: 15.20/10.10 yuan - Debt-to-asset ratio: 49.8% - Price-to-earnings ratio: 11.42 [4]. Financial Forecast - Revenue projections for 2025 and 2026 are 36.5 billion yuan and 38.2 billion yuan, respectively, with year-on-year growth rates of 6.7% and 4.7% [6]. - Expected net profits for 2025 and 2026 are 2.6 billion yuan and 2.79 billion yuan, reflecting growth rates of 7.7% and 7.1% [6]. - The company’s price-to-earnings ratio is projected to be 11x for 2025 and 10x for 2026 [6].