Investment Rating - The investment rating for the company is "Buy" and is maintained [6][7]. Core Views - The company reported a revenue of 23.038 billion yuan for 2024, a year-on-year decrease of 9.8%, and a net profit of 211 million yuan, down 67.2% year-on-year [2][4]. - The overall demand in the regional market is under pressure, with the company's cement segment sales declining by 10.9% year-on-year [2][8]. - The increase in management expenses, which reached 2.63 billion yuan, approximately 300 million yuan more than in 2023, significantly impacted performance [2][8]. Summary by Sections Financial Performance - In 2024, the company's cement products, concrete, and aggregate sales were 61.714 million tons, 13.209 million cubic meters, and 69.352 million tons, representing decreases of 10.9%, increases of 39.6%, and increases of 52.1% respectively compared to 2023 [8]. - The average selling prices for cement products, concrete, and aggregates were 243.7 yuan/ton, 319.5 yuan/cubic meter, and 36.4 yuan/ton, showing decreases of 10.6%, 12.9%, and an increase of 2.8% respectively year-on-year [8]. - The gross profit margins for cement products, concrete, and aggregates were 15.1%, 12.2%, and 35.1% respectively, compared to 11.7%, 11.9%, and 54.3% in 2023 [8]. Market Outlook - The overall cement production in China decreased by 9.5% year-on-year to approximately 1.83 billion tons in 2024 [8]. - The company is expected to see performance improvements in 2025 and 2026, with projected net profits of 1.1 billion yuan and 1.3 billion yuan, corresponding to price-earnings ratios of 11 and 9 times respectively [6][8]. - The South China market is anticipated to improve, with the Greater Bay Area construction providing momentum [8]. Business Expansion - The aggregate business is in a growth phase, with the company having an annual production capacity of approximately 108.6 million tons through its subsidiaries and joint ventures [8]. - The expected capital expenditure for 2025 is 2.52 billion yuan, which is a reduction compared to previous years [8].
华润建材科技：期待华南市场改善，公司业绩弹性释放-20250326