Core Viewpoint - Cemex (CX) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly influenced by institutional investors [4][6]. - For the fiscal year ending December 2025, Cemex is expected to earn $0.92 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 25.5% over the past three months [8]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly Zacks Rank 1 stocks averaging a +25% annual return since 1988 [7]. - The upgrade of Cemex to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Insights - Banks are advocating for modifications to the Reserve Bank of India's draft acquisition finance guidelines, including higher exposure limits and the ability to fund unlisted companies' M&A plans [1][4] - The current proposal caps banks' exposure to acquisition finance at 10% of their Tier-I capital, which banks believe is insufficient [3][6] - Recent major M&A deals highlight the potential for significant acquisition financing in the market [8][9] Group 1: Regulatory Changes - Banks are requesting the RBI to increase the exposure limit for acquisition finance from the proposed 10% of Tier-I capital to possibly 30-40% of banks' net worth [3][6] - There is a call for the RBI to allow banks to finance acquisitions of well-run unlisted entities, as smaller listed companies have faced governance issues [2][4] Group 2: Current M&A Landscape - Notable recent domestic M&A transactions include JSW Paints acquiring a 75% stake in Akzo Nobel India for $1.6 billion, Torrent Pharmaceuticals purchasing JB Chemicals & Pharmaceuticals for $3 billion, and ONGC NTPC Green acquiring Ayana Renewable Power Pvt Ltd for $2.3 billion [8] - The total Tier-1 capital of banks is approximately ₹28.4 lakh crore, indicating that the immediate funding availability for M&As would be slightly above ₹2.8 lakh crore, which is considered small but a starting point for regulatory changes [9]

Legal & Ethical Risks - Lafarge (隶属于 Holcim) 将在巴黎接受审判，被指控十年前非法向恐怖组织支付数百万欧元，以维持在叙利亚的一家水泥厂运营 [1]

Chiffre d’affaires en croissance au 3ème trimestre : +4,9% en organique et +1,4% en base publiéeStabilisation de l’activité ciment en France et poursuite de la reprise en SuisseBonne dynamique des pays émergents, notamment en zone Méditerranée et au BrésilEffet de change défavorable au 3ème trimestrePerspectives 2025 de chiffre d’affaires et d’EBITDA confirmées Chiffre d’affaires consolidé 9 mois 2025 : (en millions d’euros) 30 septembre2025 30 septembre 2024VariationpubliéeVariationà pcc*France897879+2,0%- ...

Long-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dynamics of the industries where they participate, and buying companies that we would like to hold independently of how the price moves in the future. Most QC calls will be holds, and that is by design. Only a very sm ...

Core Insights - Cementos Pacasmayo S.A.A. reported consolidated results for the third quarter and the first nine months of 2025, highlighting growth in sales volume and revenue driven by increased demand in the construction sector [1][5]. 3Q25 Financial and Operational Highlights - Sales volume of cement, concrete, and precast increased by 9.0%, attributed to higher sales for infrastructure projects and increased demand for bagged cement [5]. - Revenues rose by 10.9%, consistent with the increase in sales volumes [5]. - Consolidated EBITDA increased by 3.9%, reaching S/160.6 million, primarily due to the revenue increase [5]. - Consolidated EBITDA margin was 28.0%, reflecting a 1.9 percentage point decrease due to higher personnel expenses from a negotiated union bonus [5]. - Net income was S/71.5 million, a 14.4% increase, driven by higher operating income, increased financial income, and lower interest expenses due to debt amortization [5]. 9M25 Financial and Operational Highlights - Sales volume of cement, concrete, and precast increased by 6.8%, mainly due to higher demand for bagged cement and infrastructure projects [5]. - Revenues increased by 7.3%, aligning with the sales volume growth [5]. - Consolidated EBITDA rose by 4.6%, reaching S/425.5 million, driven by increased demand [5]. - Consolidated EBITDA margin was 27.3%, consistent with the same period last year [5]. - Net income increased by 15.6%, reaching S/172.0 million, attributed to higher operating income, increased financial income, lower interest payments due to debt amortization, and favorable foreign exchange effects [5]. Company Overview - Cementos Pacasmayo S.A.A. is a leading cement company in Peru, producing and selling cement and related materials, with over 67 years of operational history [7]. - The company is listed on the New York Stock Exchange under the ticker symbol "CPAC" and serves the rapidly growing construction sector in Peru [7].

Financial Data and Key Metrics Changes - Consolidated EBITDA rose sharply, increasing at a double-digit rate, with EBITDA margin expanding by 2.5 percentage points, reaching its highest level for a third quarter since 2020 [6][9][12] - Free cash flow from operations was close to $540 million, an improvement of more than $350 million versus the third quarter of last year, with a free cash flow conversion rate reaching 41% on a trailing 12-month basis [27][29] - Net income performance in the quarter grew by 8% when adjusting for discontinued operations, with record net income of $1.3 billion for the first nine months of the year [9][30] Business Line Data and Key Metrics Changes - In Mexico, EBITDA grew 11%, marking an expected inflection point in quarterly performance, with a 33.1% EBITDA margin achieved, the highest level since 2021 [18][20] - The U.S. operations reached record third-quarter EBITDA and EBITDA margin, driven by increased cost efficiencies and higher prices, although volumes for core products declined by 1% [20][21] - The South Central America and Caribbean region posted impressive results, with EBITDA rising by 54% and margin expanding by 6.8 percentage points [25][26] Market Data and Key Metrics Changes - Demand conditions in Mexico are showing signs of improvement, with average daily cement sales volume outperforming historical sequential seasonality patterns [18] - In Europe, high single-digit growth in cement volumes was driven by infrastructure throughout Eastern Europe, with housing activity boosting demand in Spain [24] - The EMEA region continued strong performance, reaching new records in EBITDA and margins, with ready-mix and aggregate volumes expanding by 13% and 1% respectively [24][25] Company Strategy and Development Direction - The company is focused on attaining best-in-class operational excellence and delivering industry-leading shareholder returns, with a strategic framework aimed at enhancing profitability and increasing free cash flow conversion [5][15] - Project Cutting Edge aims for annualized recurring EBITDA savings of $400 million by 2027, with significant progress already made [12][14] - The company is prioritizing small to mid-size acquisitions, reallocating capital to opportunities that are immediately accretive, while divesting non-core markets [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in demand conditions, particularly in Mexico and the U.S., with expectations of low single-digit growth in U.S. demand next year [20][63] - The company anticipates a pickup in infrastructure spending as the government enters its second year in office, which should support profitability in Mexico [20][42] - Management remains cautious about the residential sector in the U.S., expecting continued weakness but potential recovery in 2027 [63] Other Important Information - The company completed the divestment of its operations in Panama at an attractive multiple of about 12x, reallocating part of the proceeds to acquire a majority stake in Couch Aggregates [16] - The company is advancing its decarbonization agenda, having already surpassed the European Cement Association's 2030 consolidated net CO2 emissions target [25] Q&A Session Summary Question: Cash conversion expectations for next year and 2027 - Management targets around 45% free cash flow conversion from operations in 2026, with further improvements expected beyond that [33][34] Question: Outlook for Mexico's demand volumes in 2026 - Management expects demand volumes in Mexico to grow by no less than 2.5%-3% in 2026, driven by infrastructure projects [40][41] Question: Breakdown of EBITDA margin expansion in Mexico - The 500 basis points improvement in EBITDA margin was driven by prices, SG&A reductions, and lower variable costs, including a significant decrease in unitary fuel costs [46][47] Question: Industry's approach to CCUS - Management emphasized that while CCUS is important for net zero, it will only be deployed if it is accretive to value creation, focusing on traditional levers for decarbonization first [51][52] Question: Price increase plans for 2026 - Management has not yet sent price increase letters but is optimistic about pricing strategies that will offset input cost inflation in both the U.S. and Europe [54][56] Question: Regional performance differences in the U.S. - Weaker volumes were noted in Florida, California, and Arizona, while growth was seen in Texas, Colorado, and the Mid-South, with strong infrastructure demand expected to continue [60][63] Question: Optimization plans at Balcones in Texas - The use of artificial intelligence at Balcones is expected to lead to significant yield increases and further cement margin improvements [65][66] Question: Urbanization solutions business performance - The decline in revenue and EBITDA is attributed to weakness in residential and infrastructure activity, but core businesses remain integral to the company's strategy [67][68]

Summary of Huaxin Cement Co. 3Q25 Earnings Call Company Overview - **Company**: Huaxin Cement Co - **Industry**: Greater China Cement - **Market Cap**: US$5,440 million - **Ticker**: 600801.SS (A-share), 6655.HK (H-share) Key Financial Highlights - **3Q25 Performance**: - Net profit reached Rmb900 million, representing a **121% YoY** increase and a **3.5% QoQ** increase, exceeding market expectations [2][4] - **9M25 Net Profit**: Grew **76% YoY** to Rmb2 billion [2] - **Revenue Growth**: Driven by increased overseas cement shipment volumes and improved gross profit per ton [2] - **SG&A Expenses**: Controlled with a mild increase of Rmb104 million YoY to approximately Rmb1 billion in 3Q25, resulting in an SG&A ratio of **11.3%**, up **0.6ppt YoY** [3] Strategic Developments - **Acquisition of Lafarge Africa**: - Huaxin acquired an **83.81% stake** in Lafarge Africa for approximately **US$774 million** on August 29, 2025 [4] - The Nigerian business contributed an estimated Rmb100 million to Huaxin's earnings in 3Q25, with full consolidation expected in 4Q25, likely enhancing earnings further [4] Dividend Announcement - **9M Dividend**: First-time announcement of Rmb0.34 per share, implying a **35% payout ratio** of 9M25 earnings, compared to Rmb0.46 per share and **40% payout** for FY24 [5] - **Dividend Yield**: Implies a **1.6% yield** for A-shares and **2.3% yield** for H-shares [5] Analyst Ratings and Price Target - **Rating**: Overweight (OW) on both A and H shares due to high earnings growth visibility from overseas expansion and attractive valuation [5][7] - **Price Target**: Rmb22.90, indicating an **11% upside** from the closing price of Rmb20.66 on October 24, 2025 [7] Risks and Considerations - **Upside Risks**: - Better-than-expected demand in Hubei and Yunnan could mitigate supply/demand impacts [10][12] - Stricter production suspension and environmental regulations may enhance pricing power [10][12] - **Downside Risks**: - Weak fundamentals in Guizhou could negatively affect pricing in southwestern and central China [11][13] - Slower-than-expected growth in overseas markets may hinder overall performance [11][13] Conclusion - Huaxin Cement Co's strong financial performance in 3Q25, driven by overseas expansion and strategic acquisitions, positions the company favorably in the cement industry. The positive market reaction to earnings and the initiation of dividends reflect confidence in future growth prospects. However, potential risks related to market conditions and operational challenges should be monitored closely.

Financial Milestone - Aliko Dangote's net worth reached $30 billion as of October 23, marking a $2.16 billion increase since the beginning of the year [1][2] Business Expansion - The recent increase in wealth coincided with the opening of a $160 million cement facility in Attingué, Côte d'Ivoire, with a production capacity of three million metric tonnes annually [4] - Dangote Group's cement production capacity across Africa now totals approximately 55 million tons per year, spanning 11 countries [4] Future Plans - The company plans to list 5 to 10 percent of its shares on the Nigerian Exchange (NGX) Limited within the next year [5] - Dangote aims to double the capacity of his oil refining operations to 1.4 million barrels per day, potentially surpassing the world's largest refinery in Jamnagar, India [5] Historical Context - Dangote began his business journey with a small trading firm and expanded into various sectors, including cement, sugar, and oil refining [3] - The Dangote Oil Refinery, which started operations in October 2023, initially produced around 370,000 barrels per day of diesel and jet fuel [6]

Core Viewpoint - China Resources Building Materials Technology Holdings reported a significant decline in revenue and net profit for 3Q25, largely in line with expectations, indicating ongoing challenges in the cement market due to weak demand and rising supply-demand imbalances [1][2]. Group 1: Financial Performance - Revenue fell 11% YoY to Rmb4.86 billion, while attributable net profit dropped 83% YoY to Rmb24.32 million [1]. - The firm's total sales volume of cement and clinker decreased 5.3% YoY to 14.12 million tonnes, which was a milder decline compared to the industry's 6.6% drop [1]. - The per-tonne average selling price (ASP) of cement and clinker decreased Rmb32 YoY to Rmb205, while the per-tonne cost also fell Rmb32 YoY to Rmb173, resulting in a stable per-tonne gross profit of Rmb32 [1]. Group 2: Business Segments - Sales volume for concrete and aggregate businesses increased significantly, with concrete sales rising 11% and aggregate sales up 32% YoY in 3Q25 [2]. - The unit gross profit for the concrete business increased Rmb7 YoY to Rmb46 per cubic meter, while the per-tonne gross profit for aggregates fell Rmb5 YoY to Rmb8.3 [2]. Group 3: Expense and Cost Management - The expense ratio for cement and clinker rose, with expenses per tonne increasing Rmb3 YoY to Rmb50 [3]. - Selling, general and administrative (G&A), and financial expense ratios changed by +0.2 percentage points, +1.9 percentage points, and -0.5 percentage points YoY, respectively [3]. Group 4: Industry Outlook - The cement industry is preparing for potential price hikes in November-December, with expectations that the "anti-involution" campaign may support earnings recovery [3]. - The utilization rate of clinker capacity is projected to rise to about 60% by 2026 if overproduction restrictions are strictly implemented [3]. - Management is focusing on strengthening profit margins and prioritizing pricing strategies, indicating potential upside for profit per tonne in southern China [3]. Group 5: Valuation and Forecast - EPS forecasts for 2025 and 2026 have been cut by 66% and 48% to Rmb0.06 and Rmb0.11, respectively, due to fixed asset impairments and lower-than-expected sales volume and prices [4]. - The stock is currently trading at 28x 2025 estimated P/E and 14x 2026 estimated P/E, with a target price cut by 12% to HK$2.2, implying a 34x 2025 estimated P/E and 17x 2026 estimated P/E with a 24% upside [4].