Changjiang Securities·2025-09-05 05:14Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company reported a revenue of 16.047 billion yuan in H1 2025, a year-on-year decrease of 1.17%, while the net profit attributable to shareholders was 1.103 billion yuan, showing a significant year-on-year increase of 51.05% [2][4] - In Q2 2025, the revenue was 8.885 billion yuan, down 2.94% year-on-year, but the net profit increased by 57.22% to 870 million yuan [2][4] - The cement gross margin improved, while aggregate sales declined. H1 2025 cement and clinker sales were 27.737 million tons, down 2.6% year-on-year, with overseas sales increasing by 10.4% to 8.388 million tons [5][6] - The company expects the Nigerian project to bring high elasticity to its performance, with anticipated earnings of 3 billion yuan and 3.6 billion yuan for 2025 and 2026, respectively, corresponding to a PE ratio of 11 and 9 times [11] Financial Performance Summary - H1 2025 cement revenue was 9.15 billion yuan, up 5.6% year-on-year, with domestic cement revenue at 5.02 billion yuan, down 1.26%, and overseas cement revenue at 4.128 billion yuan, up 15.37% [5][6] - The overall gross margin increased by 5.3 percentage points to 23.65% compared to the same period last year, driven by higher domestic cement prices and lower costs [6] - The company’s EBITDA from non-cement businesses accounted for 44% of total profits, indicating diversification in revenue streams [6] Regional Performance - Revenue from the African region was 2.136 billion yuan, up 21.51% year-on-year, while the Asian region's revenue was 2.204 billion yuan, up 12.14% year-on-year [11] - The company has initiated several overseas technical transformation projects, including upgrades in Zimbabwe, Zambia, and South Africa, enhancing production capacity [11]