HUAXIN CEMENT(600801) 民生证券·2024-03-31 16:00Investment Rating - The report maintains a "Recommended" rating for the company, with a closing price of 13.66 yuan as of March 29 [2][4]. Core Insights - The company reported a revenue of 33.757 billion yuan in 2023, representing a year-on-year increase of 10.79%. The net profit attributable to shareholders was 2.762 billion yuan, up 2.34% year-on-year, while the non-recurring net profit decreased by 9.95% to 2.322 billion yuan [1][2]. - The company is optimizing its cement business structure, with a notable increase in its "Cement+" business. Despite a weak downstream demand, the net sales volume of cement clinker reached 619 million tons, a year-on-year increase of 2.48%, primarily driven by overseas acquisitions [1][2]. - The company is actively expanding its overseas operations, achieving a revenue of 5.439 billion yuan from international markets, which accounts for 16% of total revenue, marking a 30% year-on-year growth [1][2]. Summary by Sections Financial Performance - In Q4 2023, the company achieved a revenue of 9.592 billion yuan, up 10.77% year-on-year, and a net profit of 880 million yuan, a significant increase of 87.34% year-on-year. The gross margin for 2023 was 26.71%, with a net margin of 9.53% [1][2]. - The company’s financial expenses increased by 52.62% to 699 million yuan, attributed to a rise in interest-bearing liabilities. The operating cash flow net amount was 6.236 billion yuan, up 36.51% year-on-year [1][2]. Business Segments - The cement and clinker revenue decreased by 2.64% and 46.14%, respectively, while the "Cement+" segment, including aggregates and concrete, saw substantial growth. Aggregate sales doubled to 131 million tons, generating 5.364 billion yuan in revenue, a 75.01% increase [1][2]. - The company’s concrete sales grew by 66% to 27.27 million cubic meters, resulting in a revenue of 7.652 billion yuan, a 49.08% increase year-on-year [1][2]. Future Outlook - The company is expected to maintain a strong growth trajectory, with projected net profits of 3.05 billion yuan, 3.43 billion yuan, and 3.70 billion yuan for 2024, 2025, and 2026, respectively. The dynamic PE ratios for these years are estimated at 9x, 8x, and 8x [1][2].