Comprehensive review: In 2023, Conch Cement achieved an operating income of 140.999 billion yuan, a year-on-year increase of 6.8%, and a net profit attributable to the parent company of 10.43 billion yuan, a year-on-year decrease of 33.4%. In the whole year of 2023, the company made full use of the supply and marketing channels of bulk materials, and the trading business was active. At the same time, the overseas business, industrial chain extension and new energy business continued to develop, and the operating income grew against the market. However, due to the decline in the price of cement in the main business, the net profit attributable to the parent company declined to a certain extent, but the overall operating performance maintained a strong resilience.
Figure 1, 2: Conch Cement will not increase its profit
in 2023 Data source: Cement Big Data (https://data.ccement.com/)
Highlight 1: Active trading business In
2023, Conch Cement continued to strengthen the construction of the terminal market, consolidate its market position, and achieve growth in sales of self-operated cement clinker products, with annual sales of 285 million tons, an increase of 0.72% over the same period last year. The average selling price of cement clinker decreased by 14.81% to 273.45 yuan/ton, and the company's main business such as cement realized revenue of 84.051 billion yuan, down 11.41% from the same period last year. The company made full use of the supply and marketing channel platform of bulk materials, increased the trade of steel, coal and packaging paper, and other business income increased greatly. The annual operating income was 54.592 billion yuan, an increase of 92.67% over the previous year, and the proportion of revenue rose to 38.72%, which helped the company achieve annual revenue growth.
Figures 3 and 4: Increase
in sales volume of Conch cement and clinker products Data source: Cement Big Data (https://data.ccement.com/)
Due to the decline in the price of cement products in the main business, the profit of trading business was weak. The profit share of the new industry is relatively low, and the overall profit of the company is still declining. Among the main profit indicators, the gross profit rate was 16.57%, down 4.73 percentage points, while the net profit rate and the return on net assets decreased simultaneously, recording 7.62% and 5.65% respectively, down 4.61 and 2.85 percentage points respectively from the same period last year.
Table 1: Main Operation Data
of Conch Cement in 2023 Data Source: Cement Big Data (https://data.ccement.com/)
Highlight 2: The effect of industrial extension is obvious In
2023, Conch Cement took the main cement industry as the foundation, extended the upstream and downstream industrial chain, and made every effort to promote the industrial layout of aggregate and commercial mixing, so as to lay a solid foundation for profit. In the whole year, the company added 40.7 million tons of aggregate production capacity and 14.3 million tons of commercial mixing production capacity. The release of aggregate and commercial mixing production capacity was accelerated, and the revenue increased synchronously. In 2023, the company's aggregate and commercial mixed revenue was 3.864 billion yuan and 2.254 billion yuan respectively, an increase of 73.32% and 24.71% over the same period of last year, and the industrial chain extension increased significantly.
Figures 5 and 6: Conch Cement Aggregate and Commercial Mixture Income Greatly Increased
in 2023 Data Source: Cement Big Data (https://data.ccement.com/)
In addition to extending the building materials industry chain, Conch Cement also spares no effort in expanding the industrial chain and creating new profit growth points, especially in the new industry represented by photovoltaic new energy, building a green energy system and accelerating green and low-carbon development. In 2021, the company began to enter the photovoltaic field and set up a number of new energy subsidiaries to steadily promote the integration of source, network, load and storage. By the end of 2023, the company's installed capacity of photovoltaic power generation in operation was 542 MW, an increase of 14.11% over the same period last year. According to the plan, it is estimated that by the end of the 14th Five-Year Plan, the new energy installed capacity of Conch Cement will reach 1GW.
Figure 7: Annual growth
of Conch PV installed capacity Data source: Cement Big Data (https://data.ccement.com/)
Highlight 3: Continuous promotion of internationalization strategy Steady growth
of overseas business The internationalization strategy is one of the important development strategies of Conch Cement at present and in the future. In recent years, Conch Cement has steadily promoted the internationalization strategy and achieved remarkable results. According to the data of China Cement Network Cement Big Data Research Institute, a 6300t/d production line of Conch was successfully put into operation in Uzbekistan in 2023. Up to now, the overseas clinker production capacity has reached 13.89 million tons, which is the largest Chinese-funded enterprise in overseas production capacity. With the orderly progress of overseas projects and the gradual improvement of the sales network, the overseas business achieved steady growth. In 2023, the company's overseas business achieved operating income of 4.671 billion yuan, an increase of 17.75% over the same period last year.
Figure 8: Steady increase
in overseas revenue Data source: Cement Big Data (https://data.ccement.com/)
Outlook for 2024: Steady forward operation Looking forward to the future development
, Conch Cement plans to increase its clinker production capacity by 3.9 million tons, cement production capacity by 8.4 million tons, aggregate production capacity by 25.5 million tons, commercial concrete production capacity by 7.2 million cubic meters, cement clinker sales by 299 million tons (+ 4.9%), and the building materials industry chain will continue to extend. At the same time, the Company will accelerate the layout of new formats such as new energy and digital industries, and steadily promote the development of the international blank market. The new formats and overseas businesses will continue to contribute new revenue and profits to the Company, and the Company's leading position will continue to be consolidated, and the development prospects of Conch Cement will be optimistic in the long run. (This article does not constitute investment advice)
