2024, affected by the continuous bottoming of real estate investment and insufficient start-up of infrastructure projects, the recovery of downstream demand was slow, cement production continued to decline, the contradiction between supply and demand was further intensified, and the market competition was still fierce, cement prices fell all the way. The industry as a whole shows the characteristics of "shrinking demand, fierce competition, high inventory and low price".
Reflected in the performance point of view, recently, some cement enterprises have disclosed their first quarter performance statements, most of them are losing money.
Tianshan Shares: Revenue in the first quarter of 2024 was approximately RMB16.351 billion, representing a year-on-year decrease of 26.94%; net profit loss attributable to shareholders of the listed company was approximately RMB1.923 billion. In the same period last year, the revenue was about 22.379 billion yuan, and the net profit loss attributable to shareholders of listed companies was about 1.231 billion yuan.
Conch Cement: In the first quarter, the Company achieved an operating income of RMB21.328 billion, representing a year-on-year decline of 32.08%, and a net profit attributable to parent company of RMB1.502 billion, representing a year-on-year decline of 41.14%.
Jidong Cement: In the first quarter of 2024, it achieved an operating income of 3.341 billion yuan, a year-on-year decrease of 35.56%; net profit loss of 1.099 billion yuan, compared with a loss of 792 million yuan in the same period last year.
Huaxin Cement : the revenue in the first quarter of 2024 is about RMB 7.084 billion, with a year-on-year increase of 6.87%; the net profit attributable to the shareholders of the listed company is about RMB 177 million, with a year-on-year decrease of 28.43%.
CR Building Material Technology: For the three months ended March 31, the Company's turnover was RMB4.788 billion, representing a year-on-year decrease of 5.6%; the loss attributable to owners of the Company (net profit loss attributable to parent company) was RMB28.874 million, representing a year-on-year decrease of 3.69%.
Shanshui Cement : in the first quarter, the Company's operating income was approximately RMB1.705 billion (the same below), representing a year-on-year decrease of 46.42%; the loss attributable to shareholders of the Company (net profit loss attributable to parent company) was approximately RMB808 million, representing a year-on-year increase of 43.73%.
Asia Cement (China): Asia Cement (China) released its results for the three months ended March 31, 2024. During the period, the Group achieved a profit of RMB1.224 billion, representing a decrease of 35.48% as compared to the same period last year; the loss attributable to shareholders was RMB130 million, while the profit attributable to shareholders for the same period last year was RMB40.663 million, turning into a loss.
Shangfeng Cement : The operating revenue in the first quarter decreased by 34.61% year-on-year to RMB909 million, and the net profit attributable to shareholders of the listed company was RMB14.5969 million, representing a year-on-year decrease of 91.54%.
Tapai Group: In the first quarter, the operating income was 993 million yuan, down 24.38% year-on-year; the net profit attributable to shareholders of listed companies was 149 million yuan, down 36.07% year-on-year.
Evergreen: In the first quarter, the operating income was 1.275 billion yuan, down 34.75% from the same period last year; the net loss attributable to shareholders of listed companies was 9.3609 million yuan, and the net profit for the same period last year was about 92.0426 million yuan.
Fujian Cement : released the first quarter report of 2024. During the reporting period, the company realized operating income of 342 million yuan, a decrease of 23.45% over the same period last year; the net loss attributable to shareholders of listed companies was 84.9108 million yuan.
Jianfeng Group: The operating income in the first quarter was 600 million yuan, down 0.93% year-on-year; the net profit attributable to shareholders of listed companies was 2.4283 million yuan, down 89.51% year-on-year.
Xinjiang Tianye: achieved operating income of 2.235 billion yuan in the first quarter, a year-on-year decrease of 21.29%, net profit attributable to parent company of -173 million yuan, a year-on-year increase of 44.90% in loss.
According to China Cement Network Cement Big Data Research Institute, more than 90% of cement enterprises will fall into losses in the first quarter, and the situation is very grim. So how does the follow-up market go? Will it get better? Recently, many large cement enterprises have also expressed their views and judgments.
Tianshan shares disclosed on the evening of April 16 that the current domestic cement industry is in a complex, severe and difficult period, with demand declining year by year, but there is still a large volume of about 2 billion tons in 2023. As per capita consumption matches the international level, it will decline to the next demand platform in the medium and long term.
Industry practitioners have experienced a decline in performance in recent years, hoping to get out of the predicament and enter a stable and healthy development stage of rational competition, price recovery, profit improvement and reasonable profit margin.
The company cautiously and optimistically predicts that the domestic cement demand in 2024 will decline slightly compared with the same period last year, and the business situation will be low before and high after, and the second half of the year will be better than the first half.
For the follow-up market situation, Conch Cement said that the contradiction between supply and demand in the industry is still complex and severe this year, and the demand for infrastructure is expected to rise steadily under the pull of treasury bonds, but the negative impact of the real estate downturn will continue, and the demand for cement market will decline slightly throughout the year. After
the market competition, the business strategy of the enterprise tends to be rational, and there is a strong willingness to increase the off-peak production and stabilize the market. It is expected that the cement price will continue to fluctuate in 2024.
In this context, inefficient enterprises will gradually withdraw, and industry concentration will be improved.
On April 12, the record of Huaxin Cement's investor relations activities was released. It is estimated that the domestic demand for cement will not be significantly improved this year. It is estimated that the overall demand will be flat or slightly lower than last year. The decline in demand is an overall trend, and this year is probably the same trend, but it will not be as much as some peers imagine.
Domestic cement prices have now basically reached the bottom. With the disclosure of the first quarterly report, it is expected that enterprises will face greater performance pressure, which also brings impetus to the price increase. Overall, the future price of cement should be a rising trend.
Jidong Cement said that the cement industry will continue to be difficult in 2024, and will continue to maintain the characteristics of reduction, differentiation and integration. Cement overcapacity, demand is expected to decline to a certain extent, the price is at a historical low, it is expected that the national cement market will have a trend of shock adjustment, low before and high after.
