Comments on Conch, China Resources and Western Cement Zhongbao; Price Reduction of 7 Million! Kangding Paomashan Cement 12% Equity Auction Again

< Market Overview & gt;

1. [Quotation Link] Cement prices push up regional expansion! What is the real situation of the national market? (Click on the title to view the full text)

The temperature across the country has dropped, the market demand has continued to be weak, and many regions have begun to try to push up due to the impact of off-peak kiln shutdown and low prices, but the implementation is general in the off-season environment. Overall, the overall price performance is weak, but the decline continues to narrow, and the market is still bottoming out. 2

. Details of recent changes in cement prices across the country (8.14-8.20) Among them

, Hebei, Shanxi, Beijing and Tianjin saw different increases. More data, market analysis and research reports can be found in cement big data (https://data.ccement.com/).

3. Cement enterprises in Guizhou: recognize the reality and return to rationality

. Recently, the lowest ex-factory price of cement in Guizhou is more than 190 yuan/ton, and the price of cement in Guiyang is less than 300 yuan/ton. The problem of overcapacity in Guizhou is also very serious. "Last year, the cement production capacity of Guizhou Province was about 150 million tons, but the demand for cement was less than 50 million tons, which was only a fraction." A person in charge of a cement enterprise in southeastern Guizhou said. Faced with the severe market situation, the head of local cement enterprises said that in the past, the market was mainly determined by demand, but now it depends on the rational treatment of enterprises, "price war" will only make the survival of cement enterprises more difficult. Regarding the response to the current market, the above-mentioned person in charge believes that cement enterprises should recognize the reality and return to rationality.

& lt; Today's Focus & gt;

1. [Zhongbao Review] Conch Cement: The price of main products has dropped, and the profit has dropped considerably! (Click the title to view the full text)

Comprehensive review: In the first half of 2023, Conch Cement achieved an operating income of 65.436 billion yuan, an increase of 16.28% over the previous year, and a net profit attributable to the parent company of 6.468 billion yuan, a decrease of 34.26% over the previous year. 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.

2. [Zhongbao Review] China Resources Cement: Prices mainly fell, and sales volume declined

significantly. Review: In the first half of 2023, China Resources Cement achieved an operating income of HK $12.173 billion, a year-on-year decrease of 24.5%, and a net profit attributable to the parent company of HK $621 million, a year-on-year decrease of 65.6%. Gross profit margin was 15.63%, representing a decrease of 4.86 percentage points as compared with the corresponding period of last year. In the first half of the year, cement prices in various regions of the company declined significantly, coupled with the overall decline in cement sales, resulting in a reduction in profits in the first half of the year.

3. [Comments on Zhongbao] Western Cement: Both domestic volume and price fell and overseas performance was outstanding

. In the first half of the year, Western Cement achieved an operating income of 4.398 billion yuan, an increase of 5.93% over the same period last year, of which the domestic market accounted for 72.5% and the overseas market (Africa) accounted for 27.5%; The net profit attributable to the parent company was 532 million yuan, a year-on-year decline of 19.14%, and the net profit attributable to the parent company continued to shrink for two years. The sales volume of cement was 9.14 million tons, a year-on-year increase of 5% (the domestic sales volume declined and the overseas sales volume increased significantly).

4. Price reduction of 7 million!

Recently, according to a trading platform, Chengdu Ronglian Cement Co., Ltd. held 12% of Kangding Paomashan Cement Co., Ltd. in the second auction, with a starting price of 28,309,276.8 yuan. It is reported that the first auction has failed, with a starting price of 35,386,596 yuan, and the second auction price has been reduced by more than 7 million yuan.