Comprehensive review: In the first three quarters of 2026, Conch Cement achieved an operating income of 56.222 billion yuan, a year-on-year decrease of 8.58%, and a net profit attributable to the shareholders of the parent company of 2.743 billion yuan, a year-on-year decrease of 56.89%. In the third quarter, the operating income was 19.296 billion yuan, down 3.83% year on year, and the net profit attributable to the shareholders of the parent company was 216 million yuan, down 88.92% year on year. Under the triple squeeze of cement volume and price reduction and coal cost increase, the space for the company to reduce costs and increase efficiency has been greatly reduced, the profit has dropped significantly, and the single-quarter profit has dropped to the lowest point in recent years.
Figure 1 and 2: Conch Cement Revenue in the First Three Quarters of 2026, Profit trend
Data source: Cement big data (https://data.ccement.com/)
Revenue continued to decline Profit decline expanded
quarter by quarter Since the beginning of this year, the downstream demand continued to be weak, and cement consumption continued to shrink. In the first quarter, the net profit attributable to the parent company decreased by 18.92% compared with the same period last year; in the second quarter, the peak season was not prosperous, the cement price dropped, and the company's profit decline expanded to 58.6%; Entering the third quarter, the off-season is weaker, cement prices have been declining all the way, while coal prices have resumed their upward trend, the cost side has increased, although the company's revenue decline has narrowed to 3.83%, the profit margin has been sharply compressed, the net profit of the single quarter is only 216 million yuan, the year-on-year decline has expanded to 88.92%, only 106 million yuan after deduction, the year-on-year decline is more than 90%. The decline in profits showed a trend of expanding quarter by quarter. In the first three quarters as a whole, the net profit deducted from non-return to the mother was 2.09 billion yuan, down 66.5% from the same period last year, and the decline in the main business profit was greater than apparent profit.
Table 1: Main operating data
of Conch Cement in the first three quarters of 2026 Data source: Cement big data (https://data.ccement.com/)
In terms of main profit indicators, there is a general decline. Or mainly affected by the triple squeeze of "quantity, price and cost" of cement, the company's comprehensive gross profit rate dropped to 17.69%, down 6.61 percentage points from the same period last year. Net interest rate and return on equity recorded 4.75% and 1.43% respectively, down 5.7 and 1.93 percentage points respectively from the same period last year, and basic earnings per share was 0.52 yuan, down 56.79% from the same period last year.
The cost side is also under pressure. In the first three quarters, the company's three-fee rate was 12.33%, an increase of 2.45 percentage points over the same period last year. Among them, sales expenses were 2.533 billion yuan, a slight increase of 1.69% over the previous year, and management expenses were 4.142 billion yuan, a decrease of 5.76%. Financial expenses changed from net income to 256 million yuan in the same period last year, mainly due to the increase in net exchange losses caused by exchange rate changes and the decrease in interest income over the same period last year. While the gross profit margin declined, the cost rigidity increased, which further eroded the profit margin.
The absolute profit is still in the forefront, and the quality of the main business is better.
From the performance of the cement listed companies that have disclosed the three-quarter report, the industry as a whole is under pressure in a large area, and most of them are in a loss state. Conch Cement's net profit of 2.743 billion yuan is second only to Shangfeng Material's 3.312 billion yuan. But the profits of the two are quite different. The profit increase of Shangfeng Material is mainly due to equity investment income, which accounts for more than 90% of the total profit, 151 million yuan after deduction, down 69.43% from the same period last year. In contrast to Conch Cement, the non-recurring profit and loss of 2.743 billion yuan is 734 million yuan, accounting for less than 30%, and there are still 2.09 billion yuan after deduction, almost all of which come from the main business of cement, clinker and upstream and downstream industrial chains. Conch Cement is still the enterprise with the strongest profitability and the most solid profit quality in the cement industry.
Table 2: Net profit
attributable to parent company of some companies in the first three quarters of 2026 Data source: Cement Big Data (https://data.ccement.com/)
Profit outlook: Improvement in the fourth quarter compared with the previous quarter Significant downward pressure on a year-on-year basis
Looking forward to the fourth quarter, it is difficult for the demand side to improve significantly, and it is expected to maintain a downward trend on a year-on-year basis. At the price level, under the constraints of weak demand, coupled with the uncertainty of off-peak production and enterprise synergy on the supply side, there is limited room for price increase. The three ends of volume, price and cost are hard to say optimistic, and the pressure of profit decline in the fourth quarter is greater. However, the company's asset-liability ratio is less than 20%, cash flow and dividend-paying ability are still stable, cost reduction and efficiency enhancement are still advancing in depth, and the operating resilience and leading position of the industry through the cycle have not been shaken. (This article does not constitute investment advice)
浙公网安备33010802003254号