Comprehensive review: In 2022, Conch Cement achieved a total operating income of 132.022 billion yuan, a year-on-year decrease of 21.4%. Net profit attributable to shareholders of listed companies was 15.661 billion yuan, down 52.92% year on year. In 2022, affected by the contraction of demand in the national cement industry, the sales volume of cement clinker, the company's main product, declined, and the price declined synchronously. At the same time, the further rise in coal prices led to an increase in production costs, and the company's revenue and profits declined, with profits halved, which exceeded 2015.
Figures 1 and 2: The profit of Conch Cement will fall by more than half
in 2022. Data source: Cement Big Data (https://data.ccement.com/)
Shrinkage in demand and rising costs. In the first quarter of
2022, the industry was in the off-season, and the company's revenue declined. In the second quarter, the epidemic situation was severe, the cement industry was not prosperous in the peak season, the demand shrank rapidly, and the company's revenue dropped by 33.05% year on year. After entering the third quarter, the off-season is weaker, the weak market is further deteriorating, the company is difficult to stand alone, the fourth quarter epidemic is rising again, the demand is still weak, but the company benefits from the increase in sales, business income is slightly positive, but the demand is weak and the cement price is low, while the cost is high throughout the year. The company's profit decline continued to expand, with a year-on-year decline of 70.2% in the fourth quarter. In 2022, the company realized operating income of 132.022 billion yuan, down 21.4% from the same period last year. The net profit attributable to shareholders of listed companies was 15.661 billion yuan, down 52.92% year on year, and the profit was cut in half.
In 2022, the company's earnings per share were 2.96 yuan, down 52.87% from the same period, the return on equity was 12.23%, down 10.73 percentage points from 2021, and the three-fee rate was 5.48% in 2022. The increase in the rate of three fees was mainly due to the increase in administrative expenses. In 2022, the company's administrative expenses were 5.561 billion yuan, an increase of 9.5% over the same period last year.
Table 1: Main operating data
of Conch Cement in 2022 Source: Cement Big Data (https://data.ccement.com/)
The overall demand of the cement industry will shrink in 2022. The company's self-operated and trading cement clinker sales have been greatly affected. For the whole year of 2022, the total sales volume of cement clinker of the Company was 310 million tons, representing a year-on-year decrease of 24.2%, of which the sales volume of self-operated cement clinker was 283 million tons, representing a year-on-year decrease of 6.94%, and the sales volume of cement clinker trading business was 27 million tons, representing a year-on-year decrease of 74.2%. The sharp decline in trade volume caused the proportion of trade sales volume in the total sales volume of cement clinker to drop sharply to 8.7%.
Due to the large decline in demand, the price of cement will be low in 2022, and the price focus will move down as a whole. In 2022, the average price of cement clinker produced by the company was 321 yuan/ton, down 11% year on year.
Figures 3 and 4: Changes
in sales volume and average sales price of Conch cement clinker from 2017 to 2022 Data source: Cement big data (https://data.ccement.com/)
From the perspective of ton data, In 2022, the cost per ton of Conch's self-operated cement clinker was 230.4 yuan, an increase of 27 yuan or 13.3% compared with 2021, mainly affected by the rise in coal prices. In terms of gross profit per ton, due to the decrease in the selling price of cement clinker, the gross profit per ton of cement clinker decreased significantly. In 2022, the gross profit per ton of self-operated cement clinker was 90.6 yuan, which was 66.6 yuan lower than that in 2021, and the gross profit per ton decreased from 43.6% in 2021 to 28.2%.
Figure 5: In 2022, the gross profit per ton of self-operated cement clinker of Conch Cement decreased significantly
. Data source: Cement Big Data (https://data.ccement.com/)
From the cost information per ton of major listed companies that have published annual reports, In 2022, the production cost per ton of Conch Cement was RMB230.4, representing a year-on-year increase of 13.3%. Although the unit production cost was still lower than that of Tianshan Cement and Tapai Group, the cost increase was relatively large, mainly due to the increase in fuel and power costs caused by the increase in coal prices. In 2022, the unit cost of fuel and power was RMB144.5, representing a year-on-year increase of 28.2%, representing a relatively high increase.
Table 2: Unit production cost of cement clinker of some major listed companies in 2022 (yuan/ton)
Data source: Cement Big Data (https://data.ccement.com/)
Market outlook: Make the main business bigger and stronger. Accelerating transformation and upgrading
While actively expanding and strengthening the main business of the cement industry chain, the Company has stepped up its efforts to enter the new energy track, create new industrial growth levels and cultivate new profit growth points. In 2022, the Company added cement production capacity of 3.85 million tons, aggregate production capacity of 44.8 million tons and commercial concrete production capacity of 10.8 million cubic meters, and the cement industry chain was further expanded. Zongyang all-vanadium redox flow battery energy storage project and Xuancheng photovoltaic BIPV Phase I project were successfully put into operation, and the installed capacity of photovoltaic power generation was 275 MW, representing a year-on-year increase of 37.5%. In 2023, the company plans to sell 307 million tons of cement clinker (excluding trade), an increase of 8.5% over the same period last year. In addition, the company's capital expenditure arrangement is 19.318 billion yuan, mainly with its own funds, mainly for project construction, energy-saving and environmental protection technology reform, M & a project expenditure, etc. It is expected that the company's market share will be further enhanced and its leading position will continue to be consolidated. Look forward to the long-term performance of Conch Cement. (This article does not constitute investment advice)
浙公网安备33010802003254号