CHINA DRAGON SECURITIES·2025-09-01 06:39Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company's profitability is improving, with attention on positive changes from the supply side [1] - In the first half of 2025, the company achieved operating revenue of 41.292 billion yuan, a year-on-year decline of 9.38%, while net profit attributable to shareholders increased by 31.34% to 4.368 billion yuan [3][5] Financial Performance Summary - In the first half of 2025, the average price of cement and clinker was 274.31 yuan/ton, an increase of 8.28 yuan/ton year-on-year, while the average cost decreased by 9.25 yuan/ton, leading to a comprehensive gross profit margin of 28.41%, up by 5.70 percentage points [5] - The company sold a total of 12.7 million tons of cement and clinker, a slight decrease of 0.09% year-on-year [5] - The forecast for operating revenue from 2025 to 2027 is 93.285 billion yuan, 100.296 billion yuan, and 106.363 billion yuan, respectively, with net profits expected to be 9.871 billion yuan, 10.728 billion yuan, and 11.022 billion yuan [6][5] Market Outlook - The supply-demand dynamics in the cement industry are expected to improve in the second half of 2025, driven by government investments in infrastructure and major strategic projects, although the real estate market remains under pressure [5] - The average PE ratio for the company is projected to be 13.1, 12.0, and 11.7 for the years 2025, 2026, and 2027, respectively, compared to the average valuation of comparable companies at 14.8 times PE [5][7]