qscc(SH:600425) EBSCN·2025-09-18 05:12Investment Rating - The report maintains a rating of "Accumulate" for the company [5] Core Views - The company's cement business is facing pressure on both volume and price, while the chemical sector's profitability remains to be improved [1] - In H1 2025, the company reported revenues of 1.77 billion yuan, a decline of 14% year-on-year, and a net profit attributable to shareholders of 110 million yuan, down 49% year-on-year [1][2] - The company is the leading player in the cement industry in the Xinjiang region, but both main business segments are under significant profit pressure [3] Cement Business Summary - In H1 2025, the cement business generated revenues of 1.24 billion yuan with a gross profit of 350 million yuan, resulting in a gross margin of 28.5% [2] - The company's cement sales volume declined, and prices were lower compared to the same period last year, leading to a decrease in gross margin [2] - In the Xinjiang region, cement production increased by 5% year-on-year to 0.19 billion tons in H1 2025, with the company's sales growth outpacing regional production growth [2] Chemical Business Summary - The chemical segment reported revenues of 440 million yuan in H1 2025, with a gross loss of 20 million yuan and a negative gross margin of 4.2% [3] - The decline in urea prices and weak PVC prices contributed to the unsatisfactory profitability of the chemical sector [3] Financial Forecasts - The company’s net profit forecasts for 2025 and 2026 have been revised down to 347 million yuan (down 39%) and 378 million yuan (down 46%), respectively, with a new forecast for 2027 set at 422 million yuan [3] - Revenue projections for 2025 and 2026 are estimated at 4.287 billion yuan and 4.372 billion yuan, respectively, indicating a slight decline [4] Market Data - The current share price is 4.63 yuan, with a total market capitalization of 7.43 billion yuan [5] - The company has a total share capital of 1.605 billion shares [5]