Comprehensive review: In the first half of 2023, Conch Cement achieved an operating income of 65.436 billion yuan, a year-on-year increase of 16.28%, and a net profit attributable to the parent company of 6.468 billion yuan, a year-on-year decrease of 34.26%. In the first half of the year, the company's trading business was active, while the new energy and environmental protection business continued to develop, and the operating income increased, but due to the decline in the price of cement in the main business, the net profit attributable to the parent company declined under pressure.
Figure 1 and Figure 2: Conch Cement in the first half of 2023: no increase in income or profit
Source: Cement Big Data (https://data.ccement.com/)
Significant increase in income from other businesses In the
first half of this year, affected by the macroeconomic downturn and the continuous bottoming of real estate, the cement market was not strong in the peak season, and the overall demand was weak. At the same time, the competition among enterprises was fierce, and the price of cement declined significantly. Affected by this, the company's main business income such as cement recorded 43.721 billion yuan, down 7.08% from the same period last year, but the company's trading business steel, coal and packaging paper sales activities were frequent, coupled with the consolidation of Conch environmental financial data, new energy business continued to develop, other business income increased significantly, the company realized other business income in the first half of the year. Year-on-year increase of 135.44%. Benefiting from this, in the first half of this year, the company realized operating income of 65.436 billion yuan, an increase of 16.28% over the same period last year. In terms of profit, due to the decline in the price of main cement products and the weak profit of trading business, the overall profit of the company decreased significantly. In the first half of 2023, the company's net profit attributable to the parent company was 6.468 billion yuan, a decrease of 34.26% over the same period last year.
Table 1: Main operating data
of Conch Cement in the first half of 2023 Data source: Cement big data (https://data.ccement.com/)
The main profit indicators have declined to a certain extent. Although the average price of coal purchased in the first half of this year has declined, the price of cement has declined even more, and the gross interest rate of the company has declined considerably. In the first half of 2023, the gross interest rate was 19.43%, down 9.04 percentage points from the same period last year, and the net interest rate and return on equity declined synchronously, recording 10.4% and 3.48% respectively in the first half of this year. Decreased by 7.66 and 1.82 percentage points respectively compared with the same period last year.
According to the three-fee data, the company's three-fee rate in the first half of the year was 6.02%, up 0.18 percentage points from the same period last year, mainly due to the increase in management costs. Since last year, the number of subsidiaries within the scope of consolidation of the company's financial statements has increased, and the management costs have increased synchronously. In the first half of this year, the company's management costs were 3.135 billion yuan, an increase of 15.77% over the same period last year.
Figure 3 and 4: Conch Cement in the first half of 2023, Sales volume and trade volume
of clinker products Source: Cement Big Data (https://data.ccement.com/)
In terms of product sales volume, In the first half of 2023, the company sold 130 million tons of cement clinker, an increase of 1.78% over the same period last year. Affected by the low base, the company's cement clinker trade volume increased by 3.81 million tons in the first half of the year, an increase of 74.1% over the same period last year.
Table 2: Data
of main tons of Conch cement clinker in the first half of 2023 Source: Cement Big Data (https://data.ccement.com/)
In the first half of the year, the average sales price of self-operated cement clinker of the Company was 305.72 yuan/ton. Decreased by 12.21% compared with the same period last year. Although the decrease in coal price reduced the cost per ton, it was difficult to hedge the impact of the decrease in cement clinker price on profits. In the first half of 2023, the gross profit per ton of self-operated cement clinker was 81.73 yuan, down 30.07% compared with the same period last year. In terms of
trade, the price of cement clinker per ton was higher than that of its own products, but the profit was lower, and the gross profit per ton was only 1.05 yuan, down 67.19% from the same period last year. Outlook for the second half of
2023: The Company's operation will move forward
steadily with the promotion of various businesses as a whole. Conch Cement will steadily promote the construction and development of various business segments, and comprehensively accelerate the construction based on cement manufacturing. New energy, new materials, environmental protection industry, digital economy and international trade are five industries that promote each other. In the first half of this year, the new aggregate production capacity of Conch Cement was 21.6 million tons, the commercial concrete production capacity was 7.8 million cubic meters, and the installed capacity of photovoltaic power generation was 38 MW. In the second half of the year, with the warming of cement market demand and the sustained development of the company's new business, it is expected that the company's operating performance will be better than that in the first half of the year, and the long-term development prospects of Conch Cement will be optimistic. (This article does not constitute investment advice)
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