With the end of the Spring Festival holiday, construction projects around the country have started one after another. On February 12, according to the data of China cement network, the prices of cement clinker in the Yangtze River Delta and Pearl River Delta have increased frequently recently. At present, some enterprises in Yunnan have issued letters with the rise of cement raw material prices.
Does this mean that the cement industry will usher in a price rise? Jiang Yuanlin, senior analyst of Centennial construction network cement, told the Securities Daily that although the price of clinker, the main raw material of cement, has increased at present, the cement price lacks support and the short-term market is still weak. It is expected that the cement market will continue to operate smoothly this year.
Since 2022, the A-share cement sector has stepped out of the independent market. Since the beginning of the year, the shares of Yunnan Bowin Technology Industry Co.Ltd(600883) and Ningbo Fuda Company Limited(600724) have risen by more than 15%, and the shares of 14 companies have achieved positive growth, outperforming the market in the same period.
It is noteworthy that some recent developments of cement enterprises have conveyed their confidence in the development of the industry to the market. On February 10, the leading cement enterprise Xinjiang Tianshan Cement Co.Ltd(000877) announced that it planned to issue additional shares. Cement enterprises such as Anhui Conch Cement Company Limited(600585) , Dingxin cement ( Tangshan Jidong Cement Co.Ltd(000401) holding subsidiary) and Shangfeng building materials ( Gansu Shangfeng Cement Co.Ltd(000672) holding subsidiary) followed up their investment. Among them, Anhui Conch Cement Company Limited(600585) said that participating in fixed growth is to focus on the main business of cement and promote the company's quality and efficiency. Anhui Conch Cement Company Limited(600585) equity cooperation with it is conducive to the continuous strengthening, optimization and expansion of the company's main cement industry, as well as the healthy and orderly development of the cement industry.
Tangshan Jidong Cement Co.Ltd(000401) also said frankly when replying to investors' concerns about Dingxin cement's participation in Xinjiang Tianshan Cement Co.Ltd(000877) fixed growth on the interactive platform that the company is optimistic about the development prospect of the cement industry. The fixed growth participating in Xinjiang Tianshan Cement Co.Ltd(000877) can share the development achievements of the cement industry, especially Xinjiang Tianshan Cement Co.Ltd(000877) , and further improve the profitability of the company.
"The purpose of participating in Xinjiang Tianshan Cement Co.Ltd(000877) is to send a signal to the market - you have me and I have you. Against the background of the current slowdown in the extension development of the cement industry, this is more conducive to the coordination and unification of the whole market and the promotion of industrial policies. Cement enterprises should hold together to keep warm and unify policies to jointly promote the healthy development of the industry." Insiders told reporters.
From the perspective of business performance, the overall performance of the cement industry in 2021 is flat. According to the classification of China Securities Industry (2016), 13 of the 24 listed companies in the cement industry disclosed the performance forecast for 2021, of which 7 companies such as Jilin Yatai (Group) Co.Ltd(600881) , Shenzhen Universe (Group) Co.Ltd(000023) , Tibet Tianlu Co.Ltd(600326) lost money and 6 companies such as Xinjiang Tianshan Cement Co.Ltd(000877) , Yunnan Bowin Technology Industry Co.Ltd(600883) , Sichuan Golden Summit (Group) Joint-Stock Co.Ltd(600678) made profits.
In the performance forecast, many companies said frankly that the company's gross profit decreased year-on-year in 2021 due to the sharp rise in coal prices and the year-on-year decline in cement and clinker sales. Among them, Shenzhen Universe (Group) Co.Ltd(000023) said that in 2021, affected by relevant industrial policies, the prices of upstream raw materials sand, stone and cement of the company's concrete business increased significantly, resulting in an increase in the unit operating cost of concrete. In addition, due to the rise of the company's operating costs and the relative lag in the transmission to downstream customers, the sales gross profit decreased year-on-year.
In order to cope with the adverse factors, many companies actively responded, and their performance increased instead of decreasing. Fujian Cement Inc(600802) said that in 2021, the company actively consolidated the market in the province, vigorously expanded the market in other provinces, carefully organized production and operation, orderly released the full capacity of the technical transformation project of the stone refinery, and ansa phase II project was put into operation. Although the gross profit margin of the main business decreased slightly throughout the year, the cement sales increased by 6.25% compared with the same period of the previous year, maintaining the steady growth of operating revenue and main business profit.
China West Construction Group Co.Ltd(002302) said that in 2021, while strengthening operation and management, the company continued to expand market share, maintain the year-on-year growth of sales scale, and the year-on-year growth of net profit. The main reasons are: first, the company's newly expanded regional production capacity is gradually released, at the same time, the market demand increases, the production and sales volume increases year-on-year, and the company's revenue increases steadily; Second, affected by the epidemic situation, resources and energy factors, the prices of raw materials such as cement and gravel have been raised frequently. The company relies on the transformation of scientific and technological achievements and centralized material procurement to reduce costs and increase efficiency. At the same time, it actively transmits prices to downstream industries to ensure the reasonable profit space of the enterprise, so as to make the business results of the company rise steadily.
