HUAXIN CEMENT(600801) 民生证券·2024-09-01 12:47Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 10.70 yuan [2]. Core Views - The company reported a revenue of 16.237 billion yuan for the first half of 2024, a year-on-year increase of 2.56%, while the net profit attributable to shareholders decreased by 38.74% to 731 million yuan [1]. - Domestic cement business is under pressure, while overseas cement business continues to expand, with overseas sales increasing by 47% year-on-year [1]. - The "Cement+" business segment shows strong growth, with revenue reaching 6.904 billion yuan, a year-on-year increase of 29.38% [1]. - The company is focusing on overseas expansion and low-carbon initiatives to adapt to the slowing domestic real estate and infrastructure demand [1]. Summary by Sections Financial Performance - For 2024H1, the gross margin was 23.65%, a decrease of 0.73 percentage points year-on-year, and the net profit margin was 6.29%, down 2.24 percentage points [1]. - The company’s overseas business gross margin was 33.19%, significantly higher than the domestic margin of 20.78% [1]. - The company expects net profits attributable to shareholders to be 2.027 billion yuan, 2.181 billion yuan, and 2.352 billion yuan for 2024, 2025, and 2026 respectively [2]. Business Segments - Domestic cement demand remains weak, with a total national cement production of 850 million tons in 2024H1, a year-on-year decrease of 10.76% [1]. - The company’s cement and clinker sales were 28.4844 million tons, down 4.9% year-on-year, with domestic sales estimated to have decreased by around 16% [1]. - The "Cement+" business, which includes aggregates and concrete, achieved a sales volume of 71.5261 million tons, a year-on-year increase of 41.6% [1]. Cost and Expenses - The company’s financial expenses increased by 63.09% year-on-year to 400 million yuan, primarily due to increased foreign exchange losses [1]. - As of the end of 2024H1, accounts receivable amounted to 3.185 billion yuan, a year-on-year increase of 40.97%, mainly due to the expansion of the concrete business [1].