Economic Overview - South Africa's economic development is stagnant, but the country has a friendly foreign exchange environment and stable cement demand at around 12 million tons [2] - The financial sector is well-developed, and the country has abundant mineral resources and sufficient foreign exchange reserves [2] Supply and Demand - The supply structure is acceptable, with six major cement companies; PPC holds a 35% market share, while Huaxin Cement ranks fourth with a 13% share [3] - Cement demand has remained stable over the years, with no significant increase in production capacity, and even a decrease in active capacity [3] Import Impact - South Africa's cement imports are significant, projected at 1.69 million tons in 2024, with 88% sourced from Vietnam and 76% entering through Durban [4] Profitability - The ex-factory price of Dangote cement in South Africa is around $65 per ton, with high transportation costs leading to low profitability for PPC and Dangote [5] - There is potential for profitability improvement through policy measures to restrict imports and enhance domestic transportation conditions, as well as technological advancements to reduce costs [5] Carbon Tax Considerations - The imposition of a carbon tax in South Africa necessitates monitoring of its impact on policies and profitability [6]

Investment Rating - The industry rating is "Outperform the Market" [7][66] Core Viewpoints - The report emphasizes the ongoing pressure in real estate sales and anticipates policy support in the future [3][12] - The Central Committee's recent announcements focus on promoting high-quality development in real estate and addressing market fragmentation [3][12] - The report highlights a significant decline in real estate investment and sales, with a 13.9% year-on-year drop in development investment and a 5.5% decrease in new housing sales area from January to September [3][12] - The report suggests that the construction materials sector may benefit from supply-side reforms and a potential recovery in demand as monetary policies ease [5][12] Summary by Sections Investment Highlights - The report notes that the real estate market is expected to stabilize due to anticipated policy measures, including interest rate cuts and tax reductions [3][5] - It identifies four key factors that could support the market: easing monetary policy, demand-side policy measures, sensitivity to policy changes, and supply-side reforms [3][12] Recent High-Frequency Data - As of October 24, 2025, the average price of bulk P.O 42.5 cement is 342.1 RMB/ton, showing a 0.5% decrease from the previous week and a 15.3% decline year-on-year [4][13] - The average price of glass (5.00mm) is 1184.3 RMB/ton, reflecting a 4.9% decrease from the previous week and a 3.9% year-on-year decline [4][21] Sector Review - The report indicates that the Shanghai Composite Index rose by 2.88%, while the Shenzhen Composite Index increased by 3.94%, with the construction materials index up by 1.6% [4][53] - Sub-sectors such as fiberglass manufacturing and pipe manufacturing showed significant gains, while cement manufacturing experienced a slight decline [4][53] Investment Recommendations - The report suggests focusing on three main investment lines: high-quality companies benefiting from stock renovations, undervalued companies with long-term growth potential, and leading cyclical construction material firms [5][12]

Investment Rating - The report maintains an "Overweight" rating for the construction materials industry [1] Core Views - Short-term easing of US-China trade tensions and anticipation of economic work conference guidance [1] - Mid-term expectations for improved profitability in the fiberglass sector [2] - The construction materials sector has shown a 1.60% increase in the past week, underperforming compared to the broader market indices [4] Summary by Sections 1. Bulk Construction Materials Fundamentals and High-Frequency Data - **Cement**: The national average price for high-standard cement is 348.2 RMB/ton, up 1.3 RMB/ton from last week but down 63.0 RMB/ton year-on-year. The average cement inventory ratio is 67.9%, up 0.6 percentage points from last week [11][12][18]. - **Glass**: The average price for float glass is 1243.7 RMB/ton, down 57.3 RMB/ton from last week and down 9.3% year-on-year. Inventory levels have increased, indicating weak demand [44][50]. - **Fiberglass**: The market for non-alkali fiberglass remains stable, with prices holding steady. The average price for 2400tex non-alkali winding direct yarn is between 3250-3700 RMB/ton [5]. 2. Industry Dynamics Tracking - **Investment Trends**: Fixed asset investment growth has slowed, indicating weakness in traditional sectors like real estate and infrastructure. The focus is shifting towards technology and domestic consumption [4]. - **Market Recommendations**: The report suggests focusing on technology sectors benefiting from domestic cycles and improving supply chains in the real estate sector [4]. 3. Weekly Market Review and Sector Valuation - The construction materials sector has underperformed compared to the broader market indices, with a 1.60% increase against a 3.24% rise in the CSI 300 index [4]. - The report highlights the importance of industry self-discipline and the potential for price stabilization in the cement sector due to supply-side adjustments [5][11]. 4. Price and Inventory Trends - **Cement Prices**: The report notes a slight increase in cement prices in certain regions, with expectations for continued price fluctuations due to seasonal demand [11][12]. - **Glass Inventory**: The increase in glass inventory suggests a need for demand recovery to stabilize prices [50]. 5. Recommendations for Key Companies - The report recommends focusing on leading companies in the cement and fiberglass sectors, such as China National Building Material and China Jushi, which are expected to benefit from market adjustments and technological advancements [5].

Investment Rating - The investment rating for Huaxin Cement is "Buy" (maintained) [4] Core Views - The company's profitability has significantly improved, with the successful implementation of the Nigeria project expected to contribute positively to future earnings [6] - Domestic profitability is steadily recovering, while overseas expansion is anticipated to accelerate [6] - The company has shown strong performance in Q3 2025, with a year-on-year increase in net profit of 121% [6] Financial Summary - Total shares outstanding: 2,079 million [1] - Market price: 20.66 CNY [1] - Market capitalization: 42,952.05 million CNY [1] - Revenue forecast for 2023A: 33,757 million CNY, with a growth rate of 11% [4] - Net profit forecast for 2025E: 2,990 million CNY, with a growth rate of 24% [4] - Earnings per share (EPS) for 2025E: 1.44 CNY [4] - Operating cash flow for the first three quarters of 2025: 32.27 billion CNY [6] - The company plans to distribute a cash dividend of 0.34 CNY per share, totaling 7.06 billion CNY [6] Profitability and Growth - The company achieved a net profit of 20.04 billion CNY in the first three quarters of 2025, a year-on-year increase of 76.01% [6] - The revenue for Q3 2025 was 89.86 billion CNY, reflecting a year-on-year growth of 5.95% [6] - The company expects to see continued growth in net profit, with projections of 29.90 billion CNY for 2025, 39.01 billion CNY for 2026, and 44.87 billion CNY for 2027 [6] Cash Flow and Dividend Policy - The company has maintained a high dividend payout ratio, with a historical average of around 39.5% from 2019 to 2024 [6] - The cash flow from operating activities remains robust, indicating strong operational efficiency [6]

Core Viewpoint - Huanxin Cement (06655) announced a dividend of HKD 0.34 per share for the first three quarters ending September 30, 2025, to be distributed on December 24, 2025 [1] Company Summary - The company will distribute a dividend of HKD 0.34 per share [1]

Core Viewpoint - Huaxin Cement (600801)(06655) announced a dividend distribution of CNY 0.34 per share for the first three quarters ending September 30, 2025, to be paid on December 24, 2025 [1] Summary by Category - **Company Announcement** - Huaxin Cement will distribute a dividend of CNY 0.34 per share [1]

第 2 頁 共 2 頁 v 1.1.1 EF002 第 1 頁 共 2 頁 v 1.1.1 | 香港 | | | | | --- | --- | --- | --- | | 代扣所得稅信息 | | | | | | | 宣派末期股息所適用之代扣所得稅（包括股東類型及適用的稅率）載列於下表，有關進 | | | | 一步詳情請見公司2025年第四次臨時股東會通告。 | | | | | 股東類型 | 稅率 | 有關代預扣所得稅之更多補充 （如適用） | | 非居民企業 | | | 本公司向所有非居民企業股東（包 | | | （非中國內地登記地址） | 10% | 括香港中央結算（代理人）有限公 | | | | | 司、其他代理人、受託人或其他團 | | 股息所涉及的代扣所得稅 | | | 體及組織，將被視為非居民企業股 東）派發2025年前三季度股息 | | | | | 時，須預扣10%的企業所得稅。 | | 個人居民 | | | | | | | | 對內地個人投資者通過滬港通/深 | | | （中國內地登記地址） | 20% | 港通投資本公司H股取得的股利， | | | | | 本公司按照20%的稅率代扣個人所 ...

Core Viewpoint - Huanxin Cement (06655) announced a share buyback plan, indicating confidence in its stock value and future prospects [1] Group 1 - The company plans to repurchase 115,800 A-shares [1] - The total expenditure for the buyback is approximately 2.5663 million yuan [1] - The buyback is scheduled to take place on October 27, 2025 [1]

Core Viewpoint - Huanxin Cement (06655.HK) announced a share buyback plan, indicating confidence in its stock value and future prospects [1] Group 1: Buyback Details - The company will spend RMB 2.5663 million to repurchase 115,800 shares [1] - The buyback price per share ranges from RMB 21.35 to RMB 22.72 [1]

Group 1 - The company Huaxin Cement (600801)(06655) announced a share buyback plan [1] - The company will spend 2.5663 million yuan to repurchase 115,800 A-shares [1] - The buyback is scheduled to take place on October 27, 2025 [1]