Tianfeng Securities·2025-11-05 06:43Investment Rating - The report maintains a "Buy" rating for the company with a target price of 28.71 CNY, indicating an expected return of over 20% within the next six months [7][19]. Core Insights - The company achieved a significant year-on-year increase in net profit of 120.7% in Q3, reaching 9.0 billion CNY. For the first three quarters, revenue and net profit attributable to the parent company were 250.3 billion CNY and 20.0 billion CNY, respectively, representing year-on-year growth of 1.3% and 76% [1][4]. - The overseas business continues to show strong growth, contributing positively to the company's performance despite a slight decline in domestic cement sales. The company completed the acquisition of assets in Nigeria, which is expected to enhance revenue from September [2][3]. - The company has established production bases in 12 overseas countries, with a total cement grinding capacity of 24.7 million tons per year. Following the acquisition in Nigeria, the total capacity is projected to reach 35.3 million tons [3]. Financial Performance Summary - In Q3, the company reported a revenue of 89.9 billion CNY and a net profit of 9.0 billion CNY, with a gross margin of 30.5%, reflecting a year-on-year increase of 5.8 percentage points [2]. - The company’s gross margin for the first three quarters was 29.5%, up 5.5 percentage points year-on-year, while the net profit margin was 7.7%, an increase of 3.4 percentage points [2]. - The report projects an upward revision of the net profit forecast for 2025 to 29.7 billion CNY, 39.8 billion CNY, and 45.7 billion CNY for 2025, 2026, and 2027, respectively [4]. Valuation Metrics - The report provides a valuation based on a price-to-earnings (P/E) ratio of 15 times for 2026, with a target price of 28.71 CNY [4]. - The company’s earnings per share (EPS) is projected to be 1.43 CNY in 2025, with a P/E ratio of 15.35 [6][14].