Core Viewpoint - The company reported a slight decline in revenue for the first half of 2025, but achieved profitability, indicating a trend towards high-quality growth in its core business segments [1][2]. Group 1: Financial Performance - In 1H25, the company achieved a main business revenue of 83.28 billion yuan, a year-on-year decrease of 0.2%, and a net profit attributable to shareholders of 1.36 billion yuan, aligning with prior forecasts [1]. - In 2Q25, revenue reached 46.64 billion yuan, a year-on-year increase of 0.4%, with a net profit of 1.88 billion yuan, compared to a loss of 670 million yuan in the same period last year [1]. - The company’s basic building materials segment reported a revenue of 37.20 billion yuan in 1H25, down 8.8%, but turned a profit with a total profit of 160 million yuan, reflecting a gross margin increase of 7.3 percentage points to 16.1% [1][2]. Group 2: Segment Performance - The basic building materials division saw a significant drop in cement sales volume by 14.1% to 97.78 million tons, but the average price of cement and clinker increased by 3.6% to 249.8 yuan per ton [1][2]. - The new materials division generated revenue of 26.76 billion yuan in 1H25, a year-on-year increase of 13.6%, with a gross margin of 23.3%, slightly down by 0.4 percentage points [2]. - The engineering services division reported revenue of 21.31 billion yuan in 1H25, a year-on-year increase of 3.6%, but faced a decline in gross margin by 2.6 percentage points to 16.0% [2]. Group 3: Future Outlook - The company expects continued improvement in the basic building materials sector due to anticipated infrastructure investment and supply-side measures [2]. - The company maintains a positive outlook for its new materials segment, particularly in specialty fiber cloth, which is expected to drive growth [1][3]. - The profit forecast for the company for 2025-2027 is set at 4.2 billion, 5.1 billion, and 6.1 billion yuan respectively, with an estimated EPS of 0.55, 0.68, and 0.80 yuan [3].