Tianfeng Securities·2025-09-02 08:11Investment Rating - The report maintains a "Buy" rating for the company with a target price of 32.77 CNY, indicating an expected relative return of over 20% within the next six months [7][19]. Core Insights - The company reported a significant improvement in its H1 performance, achieving a net profit attributable to shareholders of 4.37 billion CNY, a year-on-year increase of 31.3% [1]. - The revenue for H1 was 41.29 billion CNY, reflecting a decrease of 9.4% year-on-year, while the net profit for Q2 alone was 2.56 billion CNY, showing a robust growth of 40.3% compared to the same quarter last year [1][4]. - The gross margin for the company improved to 25.2%, up 6.3 percentage points year-on-year, with Q2 gross margin reaching 27.2% [3]. Financial Performance - The company's self-produced cement and clinker revenue was 30.66 billion CNY, a slight increase of 1.5% year-on-year, driven by price growth [2]. - The average selling price per ton of cement increased by 3.6 CNY to 243 CNY/ton, while the cost per ton decreased by 14 CNY to 174 CNY/ton, resulting in a gross profit of 70 CNY/ton, an increase of 18 CNY/ton year-on-year [2]. - Operating cash flow for H1 was 8.29 billion CNY, a 20.7% increase year-on-year, with total cash reserves amounting to 63.8 billion CNY [3]. Strategic Developments - The company is actively expanding its project development, enhancing its market presence in regions like Xinjiang and overseas through acquisitions, such as in West Papua, Indonesia [2]. - The company plans to implement a mid-term dividend, proposing a cash dividend of 0.24 CNY per share, with a payout ratio of approximately 29% [4]. Capacity and Production - As of the end of H1, the company had a clinker capacity of 27.6 million tons and a cement capacity of 40.7 million tons, showcasing significant scale advantages [4]. - The company added 1.8 million tons of clinker and 4 million tons of cement capacity during the first half of the year [2]. Financial Projections - The forecast for net profit attributable to shareholders has been adjusted to 9.4 billion CNY for 2025, down from a previous estimate of 10.1 billion CNY [4]. - The projected revenue for 2023 is 140.99 billion CNY, with a growth rate of 6.8% [6]. Market Position - The company continues to strengthen its competitive position in the cement industry, with a focus on clean energy development and the construction of new projects [2]. - The report highlights the company's ability to maintain a strong cash flow and profitability despite challenges in the market [3].