Core Viewpoint - Anhui Conch Cement's 1H25 results show a decline in revenue but a significant increase in net profit, indicating resilience in a challenging market environment [1]. Financial Performance - Revenue decreased by 9.4% YoY to Rmb41.3 billion in 1H25, while attributable net profit increased by 31.3% YoY to Rmb4.37 billion [1]. - In 2Q25, revenue fell 8.2% YoY to Rmb22.24 billion, but net profit attributable to shareholders rose 40.3% YoY to Rmb2.56 billion [1]. - Gross profit per tonne of self-produced cement and clinker improved, with unit price rising Rmb4 YoY to Rmb244 and unit cost falling Rmb13 YoY to Rmb174 [2]. Sales and Production Trends - The decline in cement and clinker sales volume was only 0.35% YoY to 126 million tonnes in 1H25, significantly better than the industry average [1]. - The firm's overseas sales volume of cement and clinker increased by 20.4% YoY in 1H25, supported by projects in Xinjiang and Cambodia [3]. Aggregates and Manufactured Sand - Revenue from aggregates and manufactured sand fell 3.6% YoY to Rmb2.1 billion, with gross margin decreasing by 3.97 percentage points YoY to 43.87% [4]. Expense Management - The expense ratio rose 0.6 percentage points YoY to 10.2%, with G&A expense ratio increasing by 1.5 percentage points YoY to 7.1% [5]. Cash Flow and Dividend - Net operating cash flow reached Rmb8.3 billion in 1H25, up from Rmb6.9 billion in 1H24, with a proposed cash dividend of Rmb0.24 per share, accounting for 29% of 1H25 attributable net profit [6]. Valuation and Forecast - EPS forecasts for 2025 and 2026 were cut by 11% and 7% to Rmb1.81 and Rmb1.98 respectively, with A-shares trading at 14x 2025e and 13x 2026e P/E [7].