EBSCN·2024-03-26 16:00Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company [4]. Core Views - The company achieved revenue of 141 billion yuan and a net profit attributable to shareholders of 10.4 billion yuan in 2023, reflecting a year-on-year revenue growth of 7% but a decline in net profit by 33% [2][3]. - Despite a challenging real estate market leading to reduced cement demand, the company managed to slightly increase its market share, with self-produced cement and clinker sales reaching 285 million tons, up 0.7% year-on-year [3]. - The company plans to invest 152 billion yuan in capital expenditures in 2024, focusing on project construction, energy-saving upgrades, and acquisitions, which is expected to drive future growth [3]. Summary by Sections Financial Performance - In Q4 2023, the company reported a revenue of 42 billion yuan, with a net profit of 1.8 billion yuan, showing a year-on-year decline of 10% in revenue and 46% in net profit [2][3]. - The average selling price of self-produced cement decreased to 273 yuan per ton, down 48 yuan year-on-year, leading to a gross profit margin of 16.6%, a decrease of 4.7 percentage points from the previous year [3]. Market Position - The company’s clinker production capacity reached 272 million tons, with cement capacity at 395 million tons and aggregate capacity at 149 million tons [3]. - The company’s market share has improved despite the overall industry facing a decline in demand due to the weak real estate sector [3]. Future Outlook - The company forecasts a net sales volume of 299 million tons for cement and clinker in 2024, with stable production costs expected [3]. - The projected net profit for 2024 is adjusted to 8 billion yuan, a 63% decrease from previous estimates, with further projections of 8.6 billion yuan for 2025 and 11.1 billion yuan for 2026 [3].