Comprehensive review: In 2022, Jidong Cement achieved an operating income of 34.544 billion yuan, a year-on-year decrease of 4.94%, a net profit attributable to shareholders of listed companies of 1.358 billion yuan, a year-on-year decrease of 51.69%, and a net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses of 1.12 billion yuan. Earnings per share was RMB0.51, representing a year-on-year decrease of 71%. Supported by non-cement business, the company's revenue declined narrowly, but production costs rose sharply. In 2022, the company's cement clinker profits declined under pressure, and the company's overall profits were cut in half.
Figures 1 and 2: The net profit attributable to the parent company of Jidong Cement fell
sharply in 2022 Data source: Cement Big Data (https://data.ccement.com/)
Revenue fell slightly, and profits experienced a halving
in 2022. The company's operating income totaled 34.544 billion yuan, a slight decrease of 4.94% over the same period last year. In 2022, under the impact of multiple factors such as the continued bottoming of the real estate market, the demand for cement was low and ran through the whole year. On a quarterly basis, the company's revenue in the second and third quarters was in good condition, with a year-on-year growth rate of more than 5%. Influenced by the epidemic and other factors, the company's revenue growth turned from positive to negative after the fourth quarter, with a decline of 29.03%. During the
reporting period, the prices of coal and other major raw materials increased significantly year-on-year, resulting in a year-on-year increase in the cost of cement and clinker, and a significant decrease in the gross profit margin of cement clinker business. Finally, the net profit attributable to the parent company decreased by 51.69% year-on-year to 1.358 billion yuan, and the net profit deducted from non-attributable parent company decreased by 53.7% year-on-year to 1.12 billion yuan. In 2022, the company's shutdown losses increased more, sales expenses increased, and the company's three-fee rate increased slightly.
Table 1: Main operating data
of Jidong Cement in 2019-2022 Data source: Cement big data ( https://data.ccement.com/ )
Decrease in cement clinker volume and increase in price The gross profit margin continued to decline
. Yidong Cement is the largest cement manufacturer in northern China, with cement as its main business, supplemented by clinker, hazardous waste disposal, aggregates and other businesses. In 2022, the Company achieved a total cement output of 77.53 million tons and a sales volume of 77.96 million tons, with a year-on-year decrease of 13.19% and 13.27% respectively; a total clinker output of 70 million tons and a sales volume of 8.92 million tons, with a year-on-year decrease of 6.75% and 9.26% respectively. Affected by the decline in sales, the company's cement business revenue fell 8.10% year-on-year, and its contribution to revenue dropped to 77.4%. At the same time, the rise in coal prices eroded the profits of the company's main business. During the reporting period, the gross profit margin of the company's cement and clinker business decreased by 6.57% and 6.95% respectively.
Figure 3: The gross profit margin of cement and clinker of Jidong Cement has been declining
for three consecutive years. Data source: Cement Big Data ( https://data.ccement.com/ )
. In 2021, the comprehensive price of cement clinker of the Company was 339.9 yuan per ton, with a significant year-on-year increase of 6.12%; the cost per ton was 272.08 yuan, with a year-on-year increase of 15.7%; The comprehensive gross profit per ton of cement clinker of the Company continued to decline in the past three years. Due to the increase in coal price, the increase in the cost per ton of cement clinker far exceeded the increase in the selling price. In 2022, the comprehensive gross profit per ton of cement clinker decreased by 20.35% year-on-year to 67.82 yuan.
Figure 4: 2016-2022 Jidong Cement Ton Data Change (Unit: yuan)
Data Source: Cement Big Data ( https://data.ccement.com/ )
In addition to the main cement business, the gross profit margin of the company's aggregate and hazardous solid waste disposal business declined to varying degrees in 2022. During the reporting period, the revenue of the company's aggregate business maintained a growth trend, with a growth rate of 18.17%, but the profitability decreased, and the gross profit margin of aggregate decreased by 5.67 percentage points. At the same time, the company's hazardous waste and solid waste disposal business ushered in a double decline in revenue and gross margin.
Market outlook: The demand for infrastructure in the northern region increased, contributing to the optimization and upgrading
of the Northeast market. During the reporting period, the Company optimized the industrial layout, completed the equity acquisition of Shanxi Huarun Fulong Cement Co., Ltd., improved the layout of production lines in Shanxi Province, and ranked first in the market share; The civil engineering and main equipment installation of Panshi Building Material Industrial Park project have been completed, and the rudiment of the green building material industrial park has begun to show. The market share of Jidong Cement in the Beijing-Tianjin-Hebei region exceeds 50%. In 2023, the number of infrastructure projects in Hebei's key construction projects will increase, with a total investment of 536.94 billion yuan and an estimated annual investment of 83.95 billion yuan, accounting for nearly one third of the total annual investment in all projects. The start of the northern market will provide growth momentum for the company's main business. In addition, the company and Tianshan Stock Company jointly established Liaoning Jinzhong New Material Industry Group Co., Ltd., which will promote the optimization and upgrading of the cement industry in Liaoning and even Northeast China.
In 2022, Jidong Cement further extended the aggregate industry chain, completed the construction of Tongchuan Company, Panshi Company and Jiaozuo New Material Aggregate Project, and added 13 million tons of aggregate production capacity; Steadily improve the diversified service capacity of environmental protection industry, complete the construction of more than 10 environmental protection disposal projects in Hebei, Shanxi and other regions, add 570000 tons of hazardous (solid) waste disposal capacity, and further enhance the waste disposal capacity. In 2023, the company will continue to expand the aggregate industry, improve the competitiveness of the environmental protection industry, and the contribution of the company's non-cement business will gradually increase. (This article does not constitute investment advice)
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