first quarter of 2024, China's economy as a whole continued to pick up, with GDP growing by 5.3% year-on-year and 1% year-on-year. Among them, fixed asset investment grew by 4.5% year-on-year, 1% faster than in 2023. Specifically, infrastructure grew by 6.5% year-on-year. Decline in real estate investment 9. Affected by the decline in real estate investment and insufficient start-up of key infrastructure projects, the recovery of cement demand was poor. In the first quarter, the national cement output was 337 million tons, down from the same period last year 16. < a href = "According to the statistics and analysis of the Cement Big Data Research Institute of the https://price.ccement.
, a total of 18 listed cement companies in Shanghai, Shenzhen and Hong Kong have announced their first quarter results.".
First, the performance of listed companies: Most of the revenue declined, and more than 60%
of the loss-making enterprises showed a decline in the overall performance of 18 listed companies in the first quarter of 2024. Most of the operating income declined, more than 60% fell into a loss state, and all the profits of profitable enterprises declined. Huaxin Cement and Ningxia Building Materials achieved positive growth in business income, of which Ningxia Building Materials revenue increased significantly, reaching 37. The remaining 16 companies had a decline in business income, most of which had a deeper decline, with 8 companies having a decline of more than 30%. From the perspective of net profit attributable to the parent company, there are 6 profitable companies and 12 loss-making companies in Tibet Tianlu and < a href = "https://price.ccement.com/brandnewslist-1-1000155.
". Profit companies include Conch Cement, Huaxin Cement, Tapai Group, < a href = "https://price.ccement.com/brandnewslist-1-1000366. loss-making companies, Tianshan shares suffered a huge loss of 1.923 billion yuan, an increase of 56.21% over the same period last year;"; Northern companies such as Jidong Cement, Shanshui Cement and Yatai Group suffered a loss of 1.099 billion yuan, 808 million yuan and 516 million yuan respectively, with an increase of 38.68%, 43.73% and 50.65% respectively. Asia Cement, Evergreen, Qingsong Jianhua and Ningxia Building Materials turned from profit to loss, with a large year-on-year decline; China Resources Building Materials Technology, Tibet Tianlu, Table 1: Profitability
of 18 Listed Cement Companies in the First Quarter of 2024 Data Source: Cement Big Data (HTTPS:// In the first quarter of the data. Ccement., the loss of the whole industry was about 5.9 billion yuan, setting a record of the largest loss in the first quarter of the calendar year.
Figure 1: Large
industry losses in the first quarter of 2024 Source: Cement Big Data (https://data.ccement.) Among the 11 companies with sales profit margins exceeding the industry average, 5 recorded positive and 6 negative. Among them, the top three companies with higher sales profit margins are Tapai Group, Conch Cement and Huaxin Cement, especially Tapai Group, with a sales profit margin of 19.38% in the first quarter, which is higher than that of the industry. 24. Yatai Group, Shanshui Cement, Jidong Cement, Tianlu Cement in Tibet, Fujian Cement and other five companies have a sales profit margin of less than -29%, with poor profitability; The sales profit margins of Asia Cement and Tianshan Cement are -8.01% and -13% respectively.
Figure 2: Sales Profit Margin Ranking of
Cement Listed Companies in the First Quarter of 2024 Data Source: Cement Big Data (https://data.ccement. Among the companies with positive return on net assets, Only Tapai Group exceeded 1%, while the rest of the companies were on the low side; although the return on net assets of Tibet Tianlu and China Resources Building Materials Technology did not turn positive, it narrowed; Yatai Group's loss expanded, and the return on net assets fell 5.
In terms of net interest rate, only one company's net interest rate exceeded 10%. Tapai Group ranked first (15.3%), Conch Cement, Huaxin Cement and Sichuan Shuangma all exceeded 3%; China Resources Building Materials Technology reduced its losses, and its net profit increased by 0.4 percentage points over the same period; The losses of Yatai Group and Shanshui Cement expanded, and the net interest rate decreased by 35.4 and 32 respectively compared with the same period.
From the perspective of gross interest rate, the rising and falling enterprises accounted for half of the total, and some enterprises showed negative values. The gross profit rate of Sichuan Shuangma, Yatai Group and Tapai Group is relatively high, exceeding 24%, especially the gross profit rate of Sichuan Shuangma exceeds 50%, reaching 51.9%; the gross profit rate of Sichuan Shuangma and Yatai Group is relatively high, increasing by 13.9 and 3.7 percentage points respectively compared with the same period; The gross profit margin of Shanshui Cement decreased significantly, which was lower than that of the same period in 2023. 12
. Table 2: Main profit indicators
of listed cement companies in the first quarter of 2024 Data source: Cement Big Data (https://data.ccement. Overall, Cement demand is expected to continue to decline in the second quarter compared with the same period, but the decline will be significantly narrowed. In terms of
benefits, cement prices in many places rose in late May due to factors such as the upcoming implementation of the new national standard and the rise in coal prices, but due to weak demand, prices lack the basis for a continuous surge, and the average price is still expected to be lower than the same period. Although the coal price has declined compared with the second quarter of 2023, but the range is limited, the industry profit is expected to decline in the second quarter, enterprises are still facing greater operational pressure.
