Comprehensive review: In the first three quarters of 2025, Conch Cement achieved an operating income of 61.298 billion yuan, a year-on-year decrease of 10.06%, and a net profit attributable to the shareholders of the parent company of 6.305 billion yuan, an increase of 21.28%. In the third quarter, the operating income was 20.06 billion yuan, down 11.42% from the previous year, and the net profit attributable to the shareholders of the parent company was 1.937 billion yuan, up 3.41% from the previous year. Despite the deep decline in cement prices in the third quarter, the company's efforts to reduce costs and increase efficiency have achieved remarkable results, profits are still growing, and the ability to absorb money is still strong.
Figure 1 and 2: Conch Cement Revenue in the First Three Quarters of 2025, Profit trend
Data source: Cement Big Data (https://data.ccement.com/)
Revenue continued to decline and profit continued to grow
In the first quarter of this year, despite the slow recovery of downstream demand and the decline in cement consumption, the Company strengthened the construction of the terminal market. The sales volume of cement clinker was basically the same as the same period last year, but due to the decline in other businesses, the company's operating income decreased by 10.67% year-on-year. As the price of cement was higher than same period last year and the cost of coal was lower than same period last year, the company's net profit attributable to the parent company increased by 20.51% year-on-year; In the second quarter, the overall performance of the cement business of the Company was stable, but other businesses continued to be compressed, the revenue of the Company decreased by 8.24% year-on-year, while the coal price continued to decline, and the profit attributable to the parent company increased by 40.26% year-on-year. In the third quarter, the market was weaker in the off-season, the cement price basically fell all the way, and the coal price began to rebound, the decline in revenue of the Company expanded again, and the profit narrowed significantly year-on-year. In the first three quarters, or mainly affected by the reduction of other businesses, the company's revenue declined to a certain extent, but thanks to the decline in coal prices and the further promotion of cost reduction and efficiency enhancement, profits maintained growth quarter by quarter year on year, with strong operational resilience.
Table 1: Major operating data
of Conch Cement in the first three quarters of 2025 Source: Cement Big Data (https://data.ccement.com/)
Most of the major profit indicators have improved. Mainly affected by the decline in coal prices and the significant effect of cost reduction and efficiency enhancement, the company's comprehensive gross profit rate increased, with a gross profit rate of 24.3% in the first three quarters of 2025, an increase of 4.76 percentage points over the same period last year. In addition, net interest rate and return on equity have been repaired to a certain extent, with 10.45% and 3.33% recorded in the first three quarters, respectively, up 2.75 and 0.53 percentage points from the same period last year.
According to the data of three fees, in the first three quarters, the company's three fees rate was 9.88%, an increase of 1.22 percentage points over the same period last year, mainly due to the increase in sales expenses and management expenses, which increased by 6.77% and 2.47% respectively, which may be related to the downward demand period, Conch Cement increased its efforts to maintain the stability of the terminal market.
According to the data of listed companies that have published three quarterly reports, although the net profit growth of Conch Cement is not impressive, the absolute profit level of 6.305 billion yuan is far greater than that of peer enterprises, and the title of "King of Gold Absorption" in the cement industry is well deserved.
Table 2: Net profit attributable to parent company of
some companies in the first three quarters of 2025 Data source: Cement Big Data (https://data.ccement.com/)
Profit outlook: There is a significant risk of year-on-year decline in profit in the fourth quarter 0 HTML0U NK15 Looking forward to the fourth quarter, it is expected that the demand for cement will still be in the doldrums, with a larger year-on-year decline. At the price level, under the constraints of weak demand, coupled with greater uncertainty in the replacement of supplementary production capacity at the supply side and the synergy of enterprises, it is expected that the pressure of price increase will be greater, and the room for pushing up will be limited. To sum up, compared with the same period last year, the fourth quarter profit has a greater risk of decline, but thanks to the relatively good first three quarters, it is expected that the annual profit level will still achieve growth, showing a trend of repair. 0 HTML0 UNK1 6 (This article does not constitute investment advice) 0 HTML0 UNK1 7
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