Under the stock shuffle, what kind of cement enterprises are the first to be eliminated?

At present, the demand of cement industry continues to decline, the production capacity is seriously excessive, the price war is intensifying, and the industry has entered a deep shuffling period of stock game and survival of the fittest. Under the background of increasing imbalance between supply and demand and unsustainable peak staggering production, what kind of cement enterprises are most likely to be eliminated by the market?

1. Enterprises

without self-owned mines and relying on purchased clinker do not have their own limestone mines, and the cost of raw materials and clinker is significantly higher than that of enterprises with their own resources. Under the pressure of source control and price control of head enterprises, such enterprises either maintain losses or cut off production, and the capital chain is easily broken, which is the first group to fall in the industry shuffle.

Second, the cement price of enterprises

with high liabilities and exhausted cash flow has fallen to a low level, and the profit margin of enterprises has been greatly reduced. Enterprises with high debt ratio and tight cash flow, interest expenditure and fixed costs continue to swallow up meager profits, once financing is tightened and repayment slows down, it is very easy to break the capital chain and go bankrupt or restructure.

Third, in the era of low profit when the price of enterprises

with high unit cost falls to "1", scale effect becomes the bottom line of survival. The unit production cost of enterprises with small single-line scale, high energy consumption and low operation efficiency is much higher than that of large groups, and it is difficult to make profits even at full production, so they can only gradually withdraw from the market under long-term losses.

Fourth, enterprises

with marginalized market and no core regional advantages are located in marginal areas with shrinking demand and excessive competition, which are neither supported by local stable infrastructure nor far away from the core consumer market, with high logistics costs and weak bargaining power. Under the pressure of the sinking of leading enterprises, the market share is constantly eroded, and eventually it is eliminated naturally because it is unprofitable.

Fifth, enterprises

with slow transformation and insufficient investment in green intelligence have increasingly stringent requirements for carbon market control and ultra-low emissions, and digital cost reduction has become a rigid demand. Enterprises unwilling to invest in green transformation and intelligent upgrading not only face the risk of policy penalties, but also have much higher unit costs than leading enterprises, and continue to lose competitiveness in the stock competition. In the cold winter of the

industry, the cement market is completely returning to the jungle rule that cost is king, resources are king and efficiency is king. Only enterprises that hold core resources, healthy cash flow, controllable cost, take root in advantageous regions and firmly promote green and intelligent transformation can stand firm in the deep shuffle and cross the cycle.

On April 9-10, China Cement Network will hold the 15th China Cement Industry Summit and TOP100 Award Ceremony in Hangzhou. At the same time, the " Cement Economy Fifty People Forum (C50) " was held. The Summit will build a platform for the docking of supply and demand and the collision of ideas, explore the path of green transformation and intelligent upgrading from the dimensions of macroeconomic insight, industrial chain synergy and technological innovation breakthroughs, plan a layout for the "15th Five-Year Plan" green development of the industry, and work together to create a new chapter of high-quality development!