2024, affected by the continuous bottoming of real estate investment and the slowdown of infrastructure investment, the demand for cement continued to decline, the contradiction between supply and demand continued to intensify, and the price of cement fluctuated and rebounded at a low level. In the first quarter, the downstream resumption of work was poor, and the price went down all the way. After entering the second quarter, the peak season was not strong, and the demand continued to weaken. However, the industry's awareness of self-help was strengthened, self-discipline and peak staggering were strengthened, and the cement price stabilized and rebounded. In the third quarter, the off-season was weaker and the market weakened again. In the first three quarters, cement production hit a new low since 2010. In terms of benefits, the benefits of the industry have shrunk dramatically due to the decline in cement prices and demand.
At present, there are 18 listed companies disclosing their third quarter results, including 4 in Hong Kong and 14 in Shanghai and Shenzhen.
First, the performance of listed companies: revenue generally declined by nearly half and fell into a loss
. In the first three quarters of 2024, the overall performance of 18 listed companies continued to be poor, with almost all revenue declining. Overseas layout continued to develop, effectively hedging the domestic decline, Huaxin Cement business income rose against the market, an increase of 2.29% year-on-year, is the only listed company to achieve revenue growth; There are 10 companies with a decline of more than 20% in revenue, most of which are located in East China. Since this year, the competition in East China has been fierce, the price decline has been deeper, and the drag has been more obvious. Among them, Yatai Group, Evergreen and Conch Cement have exceeded 30%, and the reduction of Conch Cement trade business has had a greater adverse impact on revenue; Jidong Cement, China National Building Material and China Resources Building Material Technology decreased by 13% ~ 17%, which is in the middle level; Ningxia Building Material, Sichuan Shuangma, Qingsong Jianhua and Jianfeng Group all decreased by less than 10%. The proportion of cement business of these companies is relatively low, while other main businesses are supported, and the decline of revenue is relatively small.
From the perspective of net return to the mother, the profits of all profitable enterprises have declined, and nearly half of them have fallen into a loss state. Among the 10 profitable companies, Conch Cement and Huaxin Cement both exceeded 1 billion yuan, of which Conch Cement reached 5.2 billion yuan, far exceeding the total profit of 18 listed companies, and remained the "king of gold absorption" in the industry. The profit scale of the remaining 8 companies was below 400 million yuan, with a decline ranging from 20% to 98%, and the profit differentiation of the industry was more serious; Among the eight loss-making companies, although Xizang Tianlu, Shanshui Cement, Fujian Cement, Jidong Cement, Yatai Group and other five companies continued to lose money, the absolute amount of losses was decreasing; Tianshan Stock, Asia Cement and China Building Materials turned to lose money, of which Tianshan Stock lost about 3.8 billion yuan, the amount was relatively large.
Table 1: Profitability
of 18 Listed Cement Companies in the First Three Quarters of 2024 Data Source: Cement Big Data (https://data.ccement.com/)
