HUAXIN CEMENT(600801) 海通证券·2024-03-30 16:00Investment Rating - The investment rating for the company is "Outperform" [1] Core Views - The company reported a revenue of 33.8 billion yuan in 2023, representing a year-on-year increase of 10.8%, and a net profit attributable to shareholders of 2.8 billion yuan, up 2.3% year-on-year [3][4] - The company plans to maintain a dividend payout of approximately 40%, with a proposed dividend of 0.53 yuan per share [3][4] - The non-cement business continues to show high growth, contributing significantly to the company's revenue and profit margins [4][6] Summary by Sections Financial Performance - In Q4 2023, the company achieved a revenue of 9.6 billion yuan, a year-on-year increase of 10.8%, and a net profit of 0.89 billion yuan, up 87.2% year-on-year [3][4] - The cement clinker sales volume reached 61.9 million tons in 2023, a 2.5% increase year-on-year, while the average price per ton decreased by 29 yuan to 311 yuan [4][8] - The company’s total revenue for 2024 is projected to be 35.5 billion yuan, with a net profit of 3.5 billion yuan, reflecting a growth rate of 26.3% [5][10] Business Segments - The aggregate and concrete businesses have shown strong growth, with revenues of 5.4 billion yuan and 7.7 billion yuan respectively, representing year-on-year increases of 75% and 49% [4][6] - Non-cement businesses accounted for 43% of total revenue and 44% of gross profit in 2023, indicating a potential second growth curve for the company [4][6] Future Outlook - The company plans to invest 69 billion yuan in capital expenditures in 2024, focusing on expanding production capacity in aggregates, concrete, and overseas cement operations [6][7] - The company has successfully acquired stakes in Oman Cement and Natal Portland Cement, expanding its overseas operations and increasing its effective cement grinding capacity to 20.91 million tons per year by the end of 2023 [7][8] - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.68 yuan, 1.91 yuan, and 2.17 yuan respectively, with a reasonable valuation range of 16.80 to 20.16 yuan per share based on a price-to-earnings (P/E) ratio of 10 to 12 times [4][10]