Guotou Securities·2025-09-01 07:37Investment Rating - The investment rating for the company is "Buy-A" with a 12-month target price of 17.88 CNY [5] Core Insights - The company's revenue for H1 2025 was 16.047 billion CNY, a year-on-year decrease of 1.17%, while the net profit attributable to shareholders increased by 51.05% to 1.103 billion CNY [1][2] - The domestic cement business saw an increase in average selling price, contributing to the profit growth despite a decline in sales volume due to reduced demand in the real estate sector [2][11] - The overseas cement business showed significant growth, with revenue increasing by 15.37% to 4.128 billion CNY, accounting for approximately 25.37% of total revenue [3][11] Summary by Sections Financial Performance - In H1 2025, the cement business generated revenue of 9.152 billion CNY, a year-on-year increase of 5.60%, with sales volume at 27.74 million tons, down 2.63% [2] - The average selling price for cement was approximately 330 CNY/ton, up 26 CNY/ton year-on-year, while production costs decreased to 232 CNY/ton, down 9 CNY/ton [2] - The overall gross profit margin improved to 29.74%, an increase of 9.03 percentage points year-on-year [9] Overseas Business Expansion - The overseas cement business achieved a revenue of 4.128 billion CNY, with a net profit of 588 million CNY, reflecting a year-on-year increase of 17.1% [3] - Significant projects included the upgrade of production lines in Zambia and South Africa, and the acquisition of a Brazilian company, enhancing the company's international footprint [3][11] Future Outlook - The company is expected to benefit from ongoing international expansion and a high-margin aggregate business, with projected revenues of 36.027 billion CNY, 39.343 billion CNY, and 42.837 billion CNY for 2025, 2026, and 2027 respectively [11][12] - The net profit forecasts for the same years are 2.720 billion CNY, 3.090 billion CNY, and 3.449 billion CNY, indicating a positive growth trajectory [12][13]