Core Insights - The company reported a revenue of 41.292 billion yuan for H1 2025, a year-on-year decrease of 9.38%, while net profit attributable to shareholders was 4.368 billion yuan, an increase of 31.34% [1] - The mid-year profit distribution plan includes a dividend of 0.24 yuan per share, totaling 1.26 billion yuan [1] Financial Performance - In Q2 2025, the company achieved a revenue of 22.24 billion yuan, down 8.24% year-on-year, with a net profit of 2.557 billion yuan, up 40.26% [1] - The company's cement clinker sales volume in H1 2025 was 12.6 million tons, a slight decline of 0.35% year-on-year, outperforming the industry [3] - The average selling price of cement was 243 yuan per ton, an increase of 4 yuan year-on-year, with a gross profit per ton of 70 yuan, up 18 yuan year-on-year [3] Industry Context - National cement production in H1 2025 was 815 million tons, a decrease of 4.3% year-on-year, reflecting weak demand amid a slowing macroeconomic environment [2][3] - Infrastructure investment in China grew by 4.6% year-on-year, while real estate development investment fell by 11.2%, and new housing starts dropped by 20% [2] Capital Expenditure and Capacity - The company’s capital expenditure in H1 2025 was approximately 6.21 billion yuan, primarily for project construction and external investments [4] - New capacities added during the reporting period included 1.8 million tons of clinker, 4 million tons of cement, 3.5 million tons of aggregates, and 525 million cubic meters of ready-mixed concrete [4] - The company’s total clinker capacity reached 27.6 million tons, cement capacity 40.7 million tons, and aggregate capacity 16.7 million tons by the end of the reporting period [4] Future Outlook - The company anticipates that supply-side reforms may provide price recovery potential, with expectations for improved production order and utilization rates if production is strictly aligned with registered capacities [4] - Earnings forecasts for 2025-2026 are projected at 8.7 billion and 10.1 billion yuan, corresponding to P/E ratios of 15 and 13 times, respectively, indicating a buy rating [5]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company reported a revenue of 41.292 billion yuan for H1 2025, a year-on-year decrease of 9.38%, while the net profit attributable to shareholders was 4.368 billion yuan, reflecting a year-on-year increase of 31.34% [2][4] - In Q2 2025, the revenue was 22.24 billion yuan, down 8.24% year-on-year, with a net profit of 2.557 billion yuan, up 40.26% year-on-year [2][4] - The mid-year profit distribution plan for 2025 includes a dividend of 0.24 yuan per share (before tax), totaling 1.26 billion yuan (before tax) [2][4] - Despite pressure on demand, a decrease in costs has supported profitability, leading to a net profit growth of 31.34% in H1 2025 [5][6] - The company’s cement clinker sales volume was 12.6 million tons in H1 2025, a slight decline of 0.35% year-on-year, which is better than the industry average [5] - The average selling price per ton was 243 yuan, an increase of 4 yuan year-on-year, with a gross profit per ton of 70 yuan, up 18 yuan year-on-year [5] - The company has projected earnings of 8.7 billion yuan and 10.1 billion yuan for 2025 and 2026, respectively, corresponding to PE ratios of 15 and 13 times [6] Financial Data - The company’s capital expenditure in H1 2025 was approximately 6.21 billion yuan, primarily for project construction and external investments [12] - New clinker capacity added was 1.8 million tons (overseas), with new cement capacity of 4 million tons and aggregate capacity of 3.5 million tons [12] - As of the end of the reporting period, the company had a clinker capacity of 27.6 million tons and a cement capacity of 40.7 million tons [12]