Comprehensive review: In 2022, Tianrui Cement achieved a total operating income of 11.055 billion yuan, a year-on-year decrease of 13.06%. Net profit attributable to shareholders of listed companies was 449 million yuan, down 62.63% year on year. In 2022, the demand in Henan and Liaoning, the main operating areas of the company, was weak, the volume and price of cement clinker fell, coupled with high costs, the company's revenue and profits declined, and the profit decline was the largest since listing.
Figures 1 and 2: The profit of Tianrui Cement declines
in 2022 Data source: cement big data (https://data.ccement.com/)
Sales decline combined with high costs and lower
profits in the first half of 2022. In the second half of the year, under the influence of repeated epidemics and the continuous bottoming of real estate, the peak season of cement industry was not prosperous, and the demand continued to weaken compared with the same period. Finally, the company achieved revenue of 11.055 billion yuan, a decrease of 13.06% compared with the same period. At the same time, coal prices remained high throughout the year, and the company's production costs remained high, with a net profit of 449 million yuan, down 62.63% from the same period in 2021.
Other profit indicators have also weakened, with basic earnings per share of 0.15 yuan in 2022, down 63.41% from the same period, return on equity down 5.06 percentage points to 2.79% from the same period, and gross interest rate falling relatively small, with gross interest rate of 24.55% in that year, down 0.88 percentage points from the same period. In terms of the rate of three fees, as the company shortened the amortization period of software, resulting in an increase in the amortization of intangible assets and an increase in management costs, the rate of three fees increased by 1.8 percentage points to 20.15% compared with 2021.
Table 1: Main operating data
of Tianrui Cement in 2022 Source: Cement Big Data (https://data.ccement.com/)
The main operating areas of the company are Henan and Liaoning. In 2022, real estate investment in the two places continued to decline, which seriously dragged down the demand for cement, with cement production in the two places falling by 17.8% and 20.88% respectively. Affected by this, the company sold 30.4 million tons of cement clinker in the whole year, down 17.9% year on year. Prices also fell under pressure under sluggish demand. In 2022, the company's average sales price of cement clinker was around 309.24 yuan/ton, down 3.15% from the same period last year.
Figures 3 and 4: The sales volume and average sales price of Tianrui Cement Clinker go down
in 2022 Data source: Cement Big Data (https://data.ccement.com/>) )
The gross profit per ton decreased under the combined influence of the decrease in the selling price per ton of cement clinker and the increase in the cost due to the increase in coal price. In 2022, the gross profit per ton of cement clinker, the company's main product, was 60.83 yuan, down 20.11% from 2021.
Table 2: Decrease
of gross profit per ton of Tianrui cement clinker in 2022 Data source: Cement big data (https://data.ccement.com/)
Market outlook: Market demand is not optimistic The company's business is facing challenges
. At present, the company's business mainly includes cement and aggregate, which account for about 85% and 15% of the revenue respectively. The company has not yet made major breakthroughs and progress in industrial chain extension and transformation and upgrading. From this year's development situation, Henan and Liaoning have serious overcapacity, and the market competition is chaotic. In addition, the cement market in the two places is highly dependent on real estate. At present, the real estate market in the two places has not yet stabilized. In addition, the pull of infrastructure stock projects is limited, and the demand and price of cement are difficult to be optimistic. In the absence of other profit growth points, the company is expected to face greater challenges this year. (This article does not constitute investment advice)
浙公网安备33010802003254号