Comprehensive review: In the first three quarters of 2026, Huaxin Building Materials achieved an operating income of 29.69 billion yuan, a year-on-year increase of 18.6%, and a net profit attributable to the parent company of 2.826 billion yuan, a year-on-year increase of 41.05%. In the third quarter, the operating income was 10.192 billion yuan, an increase of 13.42% over the previous year, and the net profit was 1.113 billion yuan, an increase of 23.68% over the previous year. Under the background of domestic volume and price double killing and large-scale loss in the industry, the company has achieved remarkable results by releasing overseas production capacity against the trend, and its overseas business has changed from "supplement" to "pillar".
Figure 1 and 2: Revenue of Huaxin Building Materials in the first three quarters of 2026, Profit Trend
Data Source: Cement Big Data (https://data.ccement.com/)
Overseas plays the leading role and China defends the basic market
Since the beginning of this year, the national cement output has continued to decline, and the cement price has been hovering at a low level. The domestic business of Huaxin Building Materials is also under pressure. According to the latest data, the company's domestic operating income in the first half of the year was 10.98 billion yuan, gross profit rate was 19.1%, down more than 5 percentage points from 24.3% in 2025, and gross profit rate dropped from 68.4% in 2024 to 32.1%. Especially since the third quarter, the volume and price of domestic cement have fallen, the cost of coal has increased, and the loss of the industry has further expanded. It is expected that the gross profit margin and gross profit ratio of Huaxin Building Materials will continue to decline.
Outside the border is a different story. In the first half of the year, the overseas business income was 9.01 billion yuan, which was equivalent to 82% of the domestic; the gross profit rate was 46.4%, which was 27 percentage points higher than domestic; the gross profit accounted for 67.9%, and two-thirds of the gross profit came from overseas (especially Africa and Central Asia), while the proportion in 2024 was only 31.6%. The proportion of revenue is also clear: from 23.5% in 2024 to 33.4% in 2025, climbing to 45.1% in the first half of this year, and the contribution of overseas revenue and profit continues to increase.
Table 1: Main operating data of Huaxin at home and abroad in recent years (100 million yuan,%)
Data source: cement big data (https://data.ccement.com/)
The curve is supported by huge overseas production capacity. Up to now, Huaxin Building Materials has accumulated 27.528 million tons of clinker production capacity overseas, ranking first among Chinese-funded cement enterprises, while Taiwan Cement and Conch ranked second and third with 18.035 million tons and 16.461 million tons respectively. In the first three quarters of this year, the demand for cement in Nigeria was strong, the price of cement remained high, and the operational efficiency was greatly improved by the integration of Huaxin's technological transformation. Data show that Huaxin Building Materials Nigeria's revenue in the first three quarters was 928 billion naira (about 4.71 billion yuan), up 19% year-on-year, and its net profit was 272 billion naira (about 1.38 billion yuan), up 31% year-on-year. Nigerian companies have contributed more revenue and profits to Huaxin Building Materials and become the engine of overseas development.
Figure 3: Overseas clinker production capacity
of TOP10 Chinese enterprises Data source: Cement big data (https://data.ccement.com/)
Cash flow from defense to attack In the first three quarters
of 2026, the net cash flow of Huaxin Building Materials was 4.912 billion yuan, an increase of 52.2% over the previous year, about 1.7 times the net return to the mother, a new high in the same period since 2021. The index continued to recover from the low of 2.511 billion yuan in the same period of 2022, and stabilized at 3.2-3.5 billion yuan in the same period of 2023-2025, and the ability to resist risks continued to increase.
The main reasons may be the following three points: first, the structural change, the overseas high-quality stock cement assets turnover is fast, the return is good, the gross profit is thick, the income and profit are inclined to overseas, the local operating cash flow of mature targets is strong; second, the cost is reduced, the energy consumption and capacity utilization rate are optimized, the operation efficiency is improved, and the cash cost is reduced; The three is the tightening of operation, the tightening of receivables and inventory control, and the slowdown of capital expenditure.
Figure 4: Trend
of net cash flow from operations in the first three quarters over the years Data source: Cement Big Data (https://data.ccement.com/)
In addition, nearly RMB5 billion of cash inflow was sufficient to repay shareholders and overseas acquisitions. The company simultaneously threw out the dividend plan for the first three quarters, distributing 5 yuan per 10 shares, totaling 1.039 billion yuan, accounting for 36.78% of the net profit attributable to the parent company, and the balance was transferred to undistributed profits. Overseas expansion has shifted from "borrowing money to buy" to "buying by oneself", which is a substantial improvement in asset quality. In the
first three quarters of this year, the operating income of Huaxin Building Materials was 29.69 billion yuan, an increase of 18.60%, reversing the slow growth since the domestic market entered the downward trend. The net profit attributable to the parent company was 2.826 billion yuan, an increase of 41.05%; Basic earnings per share was 1.38 yuan, up 42.27%.
At the same time, the quality of earnings has risen synchronously. The operating cost was RMB24.785 billion, up by 14.44%, slower than revenue. The comprehensive gross profit margin was 31.77%, up by 2.27 percentage points; the net profit margin was 12.25%, and the return on equity was 8.12%, up by 2.24 and 1.74 percentage points respectively. The rate of three expenses was 12.67%, down by 0.28 percentage point, and the financial expenses were RMB539 million, down year-on-year; the sales and administrative expenses increased by 23.4% and 17.68% respectively, faster than revenue, mainly due to the investment in overseas and market development.
Table 2: Main Operating Data
of Huaxin Building Material in the First Three Quarters of 2026 Source: Cement Big Data (https://data.ccement.com/)
Profit Outlook: Domestic is still a drag Looking at the two mergers and acquisitions
overseas, the domestic improvement in the fourth quarter is limited. The new construction of real estate continued to fall, and the infrastructure was not strong enough to support the bottom; the implementation of peak staggering and industry synergy were variable, the price rebound space was narrow, and the domestic probability of continuing volume reduction was weak, which continued to drag down the whole. On the overseas side, two clinker production lines in Mozambique have resumed production and put into operation successively, and the technical transformation of Nigeria project has been steadily promoted, which is expected to contribute to the increment in the fourth quarter.
The bigger point of view is two mergers and acquisitions. On October 30, the company signed an exclusive agreement on the acquisition of CSN Cement in Brazil, with an annual cement production capacity of about 16.3 million tons, the second largest manufacturer in Brazil, with an enterprise value of 12.7 billion reals (about 15.868 billion yuan); On the same day, the shareholders' meeting approved the acquisition of 67.6% equity of Holcim in the Philippines, corresponding to 5.2 million tons of clinker production capacity and about 9 million tons of cement production capacity. If the acquisition is successful, Huaxin's overseas strength will be greatly enhanced. But at the same time, risks should not be underestimated, such as exchange rate fluctuations, geopolitics, integration difficulties and so on, any of which may discount dividends. However, in the absence of turning point in domestic demand, hedging domestic reductions with overseas increments is one of the few successful samples in the industry. (This article does not constitute investment advice)
浙公网安备33010802003254号