The profitability of the main business has improved significantly, and the net profit of Tapai Group in 2023 is expected to increase by more than 150%.

2024-01-24 09:50:06

For the cement market in 2024, Tapai Group said that from the relevant data, the inflection point of cement demand has been downward, the demand for cement in 2024 mainly depends on the pace of recovery of real estate, and the competition in the regional cement market also depends on the off-peak production of cement industry in various regions this year.

Since

2023, the demand for cement has declined, the price has been falling, and the efficiency of the industry has declined. In this context, Tapai Group has achieved adverse growth in its performance. On the evening of January 23, 2024, Tapai Group disclosed its performance forecast for 2023, predicting a net return of 666 million yuan to 799 million yuan in 2023, an increase of 150% to 200% over the same period last year.

As for the main reasons for the growth of performance, Tapai Group said that the company actively adjusted its business ideas to adapt to market changes, continued to promote various cost reduction and efficiency enhancement work, continuously reduced product costs, superimposed on the impact of the decline in coal prices, the average cost of cement sales of the company decreased by about 16% year on year during the reporting period. External marketing was strengthened to continuously consolidate the Company's market share. During the reporting period, the average sales price of cement of the Company decreased by approximately 5% year-on-year, and the sales volume of cement decreased by approximately 3.5% year-on-year. Benefiting from the fact that the average sales cost of cement decreased more than the average sales price of cement during the reporting period, the comprehensive gross profit margin increased by about 9 percentage points year-on-year, and the profitability of the main cement industry improved significantly year-on-year.

Tapai Group mainly produces Portland cement and ready-mixed concrete. It is a cement manufacturing enterprise with great influence in eastern Guangdong. It has three major cement production bases in Meizhou City, Huizhou City, Guangdong Province and Longyan City, Fujian Province. It is the leading enterprise in the industry.

According to Wind data, only three of the 18 listed companies in the A-share cement sector achieved a year-on-year increase in net profit in the first three quarters of 2023, with Tapai Group ranking first in net profit growth. Bai Wenxi, vice chairman of

China Enterprise Capital Alliance, said in an interview with the Securities Daily: Due to the rapid development and investment in the past years, there is a large amount of excess capacity in the cement market, the competition is extremely fierce, and the price war has become the norm. In the future, with the improvement of national requirements for environmental protection and energy consumption, inefficient production capacity will be withdrawn in an orderly manner, while some superior enterprises will expand their scale through mergers and acquisitions to improve market concentration and competitiveness. Under this trend, the cement industry is expected to form a more healthy and stable competition pattern.

For the cement market in 2024, Tapai Group said that from the relevant data, the inflection point of cement demand has been downward, the demand for cement in 2024 mainly depends on the pace of recovery of real estate, and the competition in the regional cement market also depends on the off-peak production of cement industry in various regions this year.

Tapai Group recently disclosed its production and operation plan for 2024, which shows that the company's business goal for 2024 is to produce and sell more than 17.5 million tons of cement (including clinker ) and strive to achieve a net profit of more than 600 million yuan.

"Faced with the opportunities and challenges in the adjustment period of the cement industry, enterprises need to strengthen technological innovation, optimize production processes, strengthen brand building, carry out vertical integration of the industrial chain, expand new application areas and market space, and enhance their competitiveness." Bai Wenxi said.

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