Soochow Securities·2025-08-27 13:23Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company's profitability is expected to improve as industry policies are anticipated to strengthen, leading to a continued recovery in the cement sector [3][9] - The company has demonstrated cost leadership during downturns and is expanding its operations, providing new growth momentum [9] Financial Performance Summary - In the first half of 2025, the company achieved operating revenue of 41.292 billion yuan, a year-on-year decrease of 9.4%, while net profit attributable to shareholders was 4.368 billion yuan, an increase of 31.3% [8] - The company plans to distribute a cash dividend of 0.24 yuan per share, accounting for 29% of the net profit attributable to shareholders for the first half of 2025 [8] - The company's cement and clinker sales volume was 126 million tons, a slight decrease of 0.4% year-on-year, indicating a stable market position [8] - The average selling price per ton of cement increased by 4 yuan to 244 yuan, with gross profit per ton rising by 18 yuan to 70 yuan, benefiting from industry self-discipline and improved demand [8] - The company's gross margin for Q2 was 27.2%, reflecting a significant improvement compared to previous quarters [8] Cash Flow and Capital Expenditure - The operating cash flow for the first half of 2025 was 8.287 billion yuan, an increase of 1.416 billion yuan year-on-year, primarily due to improved profitability and reduced costs [3] - Capital expenditures were reduced by 19% year-on-year to approximately 62.1 billion yuan, indicating a continued contraction in capital spending [3] Market Outlook - The report suggests that the cement industry is likely to continue its recovery due to strengthened self-discipline and favorable policies, with expectations for improved profitability [9] - The company is expected to benefit from a recovery in demand and price stability in the second half of the year [9]