Ping An Securities·2025-08-31 09:10Investment Rating - The report maintains a "Recommended" investment rating for Huaxin Cement (600801.SH) [1][3] Core Views - The company reported a revenue of 16.05 billion yuan for the first half of 2025, a year-on-year decline of 1.2%, while the net profit attributable to shareholders was 1.1 billion yuan, an increase of 51.05% [3] - The second quarter of 2025 saw a revenue of 8.88 billion yuan, down 2.9% year-on-year, with a net profit of 870 million yuan, up 57.2% [3] - The company benefits from domestic cement price increases and cost reductions, with a significant improvement in gross margin from 23.65% to 28.92% year-on-year [6][7] - The overseas cement business is growing rapidly, with a 10.41% increase in overseas cement and clinker sales, totaling 8.39 million tons [6][7] - The successful acquisition of the Nigeria project for 770 million USD is expected to contribute significantly to future earnings [7] Financial Summary - Revenue projections for 2025-2027 are 35.3 billion yuan, 37.3 billion yuan, and 39.2 billion yuan respectively, with expected net profits of 2.73 billion yuan, 3.04 billion yuan, and 3.27 billion yuan [5][9] - The gross margin is expected to improve to 27.0% in 2025, with a net margin of 7.7% [9] - The company’s total assets are projected to be 68.9 billion yuan in 2025, with total liabilities of 31.5 billion yuan [8][9] Business Performance - The domestic cement business generated 5.02 billion yuan in revenue, a decline of 1.26%, while the overseas cement business achieved 4.13 billion yuan, an increase of 15.37% [6][7] - The company has established production bases in 12 overseas countries, with a total overseas cement production capacity of 24.7 million tons per year [7] - The company’s EBITDA is projected to reach 12.89 billion yuan in 2025, indicating strong operational performance [10]