Comprehensive comments: In the first quarter of 2026, Conch Cement realized an operating income of 17.066 billion yuan, a year-on-year decrease of 10.42%; the net profit attributable to the shareholders of the parent company was 1.468 billion yuan, a year-on-year decrease of 18.92%. In the first quarter of this year, the domestic demand for cement was weak, and the price of cement went down all the way. Affected by the environment of this industry, the revenue and profit of Conch Cement declined. Nevertheless, the absolute profit level of Conch Cement still leads the industry, and the competitive advantage of crossing the bottom cycle is further consolidated and strengthened.
Figures 1 and 2: Conch Cement's revenue and profit both declined
Data source: Cement Big Data (https://data.ccement.com/)
Revenue continued to decline and profits declined
in the first quarter of this year. The industry environment is still grim. Weak adjustment of real estate, insufficient construction of infrastructure projects, weak downstream demand and falling cement prices. Data show that in the first quarter of this year, the national cement output was 30.102 million tons, down 7.1% year-on-year; the average price of cement was 299.86 yuan/ton, down 20.08% year-on-year, and the whole industry may enter a loss state. Affected by this, the revenue and profit of Conch Cement both declined. Among them, operating income was 17.066 billion yuan, down 10.42% year on year, and net profit was 1.468 billion yuan, down 18.92% year on year.
Table 1: Main financial data
of Conch Cement in the first quarter of 2026 Source: Cement Big Data (https://data.ccement.com/)
In terms of other profit indicators, the gross profit margin was 21.26%. Compared with the same period last year, the return on equity dropped by 0.19 percentage points to 0.76%. Due to the large decrease in the company's deposit interest income, the rate of three fees has increased. Specifically, the company actively slimmed down, streamlined its management structure and reduced its administrative expenses. The management expenses amounted to 1.167 billion yuan, down 15.74% from the same period last year, but the financial income decreased by 90.91%, a larger range, and the three-fee rate recorded 11.17%, an increase of 0.87 percentage points over the first quarter of 2025. The ability of
absolute profit leading peers to absorb money is still strong
. Horizontal comparison shows that most cement listed companies are under obvious profit pressure in the first quarter of 2026, and some enterprises even suffer losses. Despite the decline in net profit of Conch Cement, its profitability is still leading by virtue of its scale advantage and cost control, and its absolute profit level of 1.468 billion yuan is far higher than that of its peers. During the cold winter of the industry, the competitive advantage of Conch Cement through the bottom cycle continued to consolidate and expand.
Table 2: Revenue of Major Cement Enterprises in the First Quarter of 2026 Profit information
Data source: Cement Big Data (https://data.ccement.com/)
Outlook for the second quarter: Limited
elastic space for profit margin repair Outlook for the second quarter of 2026, under the influence of seasonal factors. Cement demand is expected to improve in the first quarter, but with the arrival of rainy season and busy farming season, the demand side will still be in a structurally weak pattern. At the price level, big data from China Cement Network show that cement prices have continued to decline since April, falling by 1.5% annually, and there is still no obvious sign of stopping the decline. Although the synergy of peak staggering production in the industry is expected to be further enhanced, it is expected that the space for periodic repair of cement prices will be extremely limited under the constraints of weak demand. Overall, it is expected that the performance of Conch Cement in the second quarter will be marginally improved compared with the first quarter, but the pressure to achieve year-on-year growth will be greater, and the overall profit will remain at a low level of operation. (This article does not constitute investment advice)
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