Core Viewpoint - Anhui Conch Cement's 1-3Q25 results showed a revenue decline of 10% YoY, while net profit attributable to shareholders increased by 21% YoY, indicating a mixed performance amid challenging market conditions [1] Group 1: Financial Performance - Revenue for 3Q25 fell 11% YoY to Rmb20.01 billion, while net profit attributable to shareholders grew 3.4% YoY to Rmb1.94 billion, slightly missing expectations due to disappointing price hikes during the peak season in eastern China [1] - Cumulative net operating cash flow rose 7% YoY to Rmb11.1 billion, with cumulative capex reaching Rmb6.5 billion and free cash flow remaining abundant at Rmb4.6 billion [4] Group 2: Market Conditions - Cement sales volume demonstrated resilience despite a broader industry decline, with China's cement output falling 5.2% YoY over 9M25 and 7% YoY in 3Q25; Anhui Conch Cement's decline in sales volume was milder than the industry average [2] - Weak cement prices were observed, with average selling prices (ASP) in eastern and southern China dropping 10% and 13% QoQ in 3Q25, putting pressure on the firm's ASP [3] Group 3: Cost Management - The firm's expenses per tonne may have declined, with total expenses falling 13% YoY to Rmb2.12 billion and the expense ratio dropping 0.1ppt YoY to 10.6% [3] - Gross margin rose 1.7ppt YoY but declined 4.5ppt QoQ to 21.5%, indicating a mixed impact from cost management and pricing pressures [3] Group 4: Future Outlook - The company is expected to benefit from potential price hikes and improved competitive landscape due to anti-involution measures, with a projected 2% YoY rise in ASP in October compared to 3Q25 [4] - The financial forecasts for 2025 and 2026 net profits have been cut by 10% and 5% to Rmb8.7 billion and Rmb10 billion, respectively, reflecting ongoing pressure on cement demand [4]