5, Jidong Cement announced its semi-annual performance forecast for 2024. During the reporting period, the net profit loss attributable to shareholders of listed companies was 740 million yuan to 870 million yuan, of which 1.099 billion yuan was lost in the first quarter and turned into profit in the second quarter. It is estimated that the net profit attributable to shareholders of listed companies will be 229 million yuan to 359 million yuan.
Regarding the reasons for the performance changes, the company said that in the first half of the year, the effective market demand was weak as a whole, the price of cement and clinker decreased significantly year-on-year, and the sales volume decreased year-on-year; At the same time, the company took measures to reduce costs and increase efficiency, resulting in a significant year-on-year decrease in costs, but failed to cover the impact of changes in sales volume and price, resulting in a year-on-year increase in losses during the reporting period.
However, according to the company's recent investor summary , cement market demand is gradually recovering in the second quarter, especially since June, and cement prices in some regions have improved significantly. The performance of Jidong Cement is expected to be restored with the recovery of the industry.
China Galaxy Securities Research and Report pointed out that at present, the building materials industry is in the bottom recovery stage, demand recovery is accelerating, supply regulation is strengthened, and the performance of leading building materials such as Jidong Cement can be expected to be restored. Favorable policies, such as the recovery of real estate demand, the acceleration of special bond issuance and the support of ultra-long-term special bonds, will bring strong impetus to the cement industry.
In addition to the industry capacity optimization and the strict implementation of cement peak staggering production, it is expected that infrastructure investment in the second half of the year will further boost cement demand, and the slight price increase after the implementation of the new national standard will also boost corporate profits.
Guangfa Securities said that in the first quarter of 2024, most cement enterprises lost money. In the second quarter, cement enterprises actively raised prices to improve profits. In the third quarter, cement prices will turn positive year-on-year. In the second half of the year, leading companies are expected to take the lead in turning positive. Under the low base in the second half of last year, the profit of cement in the second half of last year is expected to turn positive year on year.
