march 25 evening, Anhui Conch Cement Company Limited(600585) ( Anhui Conch Cement Company Limited(600585) ) 2021 annual report appeared. Under the cost pressure of rising coal prices, the company ended the continuous growth trend of the previous five years, with both revenue and net profit declining, with a year-on-year decrease of about 5%. However, in absolute terms, the company’s performance is still at an all-time high, with an operating revenue of 167953 billion yuan, a net profit of 33.267 billion yuan and an average daily profit of more than 90 million yuan
The main business declined slightly, and Anhui Conch Cement Company Limited(600585) turned to planning a new situation in the investment field. Since 2021, the company has successively announced its stake in Jilin Yatai (Group) Co.Ltd(600881) , China West Construction Group Co.Ltd(002302) , Xinjiang Tianshan Cement Co.Ltd(000877) , Gansu Shangfeng Cement Co.Ltd(000672) and other peers, and has thrown out a new energy business investment plan of 5 billion yuan to create a new industrial growth pole.
performance fell for the first time in recent 6 years
As a leader in the cement industry, Anhui Conch Cement Company Limited(600585) is famous for its T-type strategy and strong cost control ability, and its profitability ranks first in the industry. From 2016 to 2020, the company’s net profit maintained growth for five consecutive years, of which the growth rate of net profit in 2017 and 2018 was more than 80%. However, in 2021, affected by factors such as energy consumption control, power and production restriction, and rising coal prices, the cement industry was under pressure on the cost side, superimposed with weakening market demand, and the company’s performance fell into the first decline in nearly six years. Specifically, the operating revenue was 167953 billion yuan, a year-on-year decrease of 4.73%; The net profit was 33.267 billion yuan, a year-on-year increase of 5.38%. Along with the annual report, the company’s “10 billion dividend plan” plans to distribute a cash dividend of 2.38 yuan per share (including tax), a total of 12.6 billion yuan, accounting for 37.91% of the net profit in 2021.
In fact, the market has expected a slight decline in Anhui Conch Cement Company Limited(600585) performance. According to the data of the third quarterly report of 2021, the net profit of the company was 22.39 billion yuan, a year-on-year decrease of 9.5%. According to the digital cement network, the total profit of the cement industry in 2021 was 169.4 billion yuan, a year-on-year decrease of 10%; At present, the profits of Gansu Qilianshan Cement Group Co.Ltd(600720) , Ningxia Building Materials Group Co.Ltd(600449) , Guangdong Tapai Group Co.Ltd(002233) and other peers that have disclosed the annual report have decreased in different proportions.
From the perspective of the overall situation of the industry, in 2021, cement showed the trend of “restraining first and then increasing”, the central price moved up as a whole, and the price reached a record high. Benefiting from the substantial increase in sales price, Anhui Conch Cement Company Limited(600585) in the eastern, central and southern regions, although the sales volume decreased slightly, the sales amount increased by 5.60%, 6.23% and 5.42% year-on-year respectively; However, the rising price can not offset the rising pressure of raw coal price, and the gross profit margin of various self-made products of the company has declined comprehensively, of which the gross profit margin of grade 42.5 cement is 43.98%, down 3.17 percentage points from the same period last year; The gross profit margin of clinker was 37.07%, a year-on-year decrease of 5.33 percentage points. It is generally estimated in the industry that for every 100 yuan / ton rise in coal price, the cost of cement will increase by 10-15 yuan / ton. In 2021, Anhui Conch Cement Company Limited(600585) the comprehensive cost of cement clinker was 203.34 yuan / ton, an increase of 17.78% year-on-year.
With regard to the cement market trend in 2022, Anhui Conch Cement Company Limited(600585) said that it is difficult to reverse the downward trend of real estate investment in the short term or have an adverse impact on demand. However, under the background of supply contraction and elimination of excess capacity, the cement industry will accelerate the liquidation, and it is expected that the supply-demand relationship of the industry may maintain a relative balance.
in terms of capital expenditure, Anhui Conch Cement Company Limited(600585) 2022 is expected to cost 23.5 billion yuan, mainly for project construction, energy conservation and environmental protection technical transformation, M & A projects and equity investment expenditure, with the investment scale increasing by 47% compared with 202 7
frequently participating peers
He was once called the “God of stocks” by buying shares of his peers, and Anhui Conch Cement Company Limited(600585) once again chose to accelerate the pace of equity investment in his peers at the bottom of the industry.
From July to October 2021, Anhui Conch Cement Company Limited(600585) with its own funds, purchased Jilin Yatai (Group) Co.Ltd(600881) 162 million shares through centralized bidding transactions, accounting for 5% of the total share capital. The purchase price range was 2.84-3.29 yuan / share, costing about 500 million yuan. It said it planned to continue to increase its holdings in the next 12 months, with an increase of no less than 10 million shares.
In December 2021, Anhui Conch Cement Company Limited(600585) and China West Construction Group Co.Ltd(002302) reached a share subscription intention and planned to invest 1.76 billion yuan to subscribe for China West Construction Group Co.Ltd(002302) 251 million non-public shares to become its strategic investors. The share issuance price is 7 yuan / share and the lock-in period is 36 months. If the issuance is completed, the shareholding ratio of Anhui Conch Cement Company Limited(600585) will rise to 16.3%, ranking China West Construction Group Co.Ltd(002302) the second largest shareholder. At that time, the company will nominate one non independent director to China West Construction Group Co.Ltd(002302) participate in its business decision-making.
In addition to China West Construction Group Co.Ltd(002302) , Anhui Conch Cement Company Limited(600585) also spent 1 billion yuan in January 2022 to subscribe for Xinjiang Tianshan Cement Co.Ltd(000877) 7407407407407404 million non-public shares at 13.50 yuan / share, accounting for 0.86% of the total share capital after issuance. Among many subscribers, Anhui Conch Cement Company Limited(600585) ranked first in the allocated amount and has become Xinjiang Tianshan Cement Co.Ltd(000877) the third largest shareholder at present.
Different from the above-mentioned strategic investment, Anhui Conch Cement Company Limited(600585) seems to have carried out a wave of “low absorption and high throw” when taking shares in Gansu Shangfeng Cement Co.Ltd(000672) . In the third quarter of 2021, Anhui Conch Cement Company Limited(600585) broke into the list of Gansu Shangfeng Cement Co.Ltd(000672) top ten shareholders, holding 20265600 shares, with a shareholding ratio of 2.49%, and said that buying was mainly to value its investment; According to the list of the top ten shareholders released by Gansu Shangfeng Cement Co.Ltd(000672) on March 15, 2022, Anhui Conch Cement Company Limited(600585) shares have been reduced to 119707 million shares, and the shareholding ratio has been reduced to 1.47% According to the data of Anhui Conch Cement Company Limited(600585) annual report, the amount of Gansu Shangfeng Cement Co.Ltd(000672) purchased by the company in 2021 amounted to 620 million yuan, and 360 million yuan had been sold by the end of 2021. The difference between buying and selling prices superimposed the floating profit of positions, and the income of 884184 million yuan was realized in the current period.
coincidentally, in 2021, the company bought Huaxin Cement Co.Ltd(600801) a shares with 34.737 million yuan, and then sold them with 456891 million yuan during the year, with current profit and loss exceeding 10 million yuan.
The reporter of securities times · e company noticed that in the capital expenditure of RMB 23.5 billion in Anhui Conch Cement Company Limited(600585) 2022, the word “equity investment” is clearly written. It remains to be seen whether it means that the investment in peers will continue to increase in the future.
overweight new energy layout
Under the goal of “double carbon”, Anhui Conch Cement Company Limited(600585) began to lay out the new energy field in a big way, and create a new industrial growth pole while promoting energy conservation and consumption reduction.
in August 2021, Anhui Conch Cement Company Limited(600585) signed an equity acquisition agreement with the related party conch investment company to acquire 100% equity of conch new energy held by the latter, with a total transaction consideration of 443 million yuan, aiming to promote the green transformation of the company. In mid January this year, the registered capital of conch new energy soared from 500 million yuan to 5 billion yuan
On March 9, 2022, Anhui Conch Cement Company Limited(600585) released the investment plan for new energy business, which plans to spend 5 billion yuan on the development of photovoltaic power stations and energy storage projects to realize the full coverage of photovoltaic power generation in subordinate factories. It is estimated that by 2022, the installed capacity of photovoltaic power generation will reach 1GW and the annual power generation capacity will reach 1 billion kwh. In addition, according to the enterprise check app, on March 21, Anhui Conch Cement Company Limited(600585) indirectly wholly-owned Fengyang conch Photovoltaic Technology Co., Ltd. was established with a registered capital of 1 billion yuan, covering glass manufacturing, manufacturing and sales of photovoltaic equipment and components.
By the end of 2021, Anhui Conch Cement Company Limited(600585) has built 19 photovoltaic power generation projects with an installed capacity of 200 MW and an annual cumulative power generation of 164 million kwh, an increase of 326% year-on-year, equivalent to saving 20200 tons of standard coal and 143800 tons of carbon dioxide emission.
In addition, Anhui Conch Cement Company Limited(600585) also has a layout in the field of new materials. Last year, the company, together with China building materials private equity fund management (Beijing) Co., Ltd. and other limited partners, jointly invested and established China building materials (Anhui) new materials industry investment fund partnership (limited partnership) (hereinafter referred to as “industrial investment fund”). The initial fund scale was 15 billion yuan, and the company subscribed 1.6 billion yuan as a limited partner.
analysts pointed out that Anhui Conch Cement Company Limited(600585) layout of new energy is not only in line with the theme of the current era of low-carbon development, but also can bring better economic benefits to enterprises. It is not impossible for Anhui Conch Cement Company Limited(600585) to make the new energy industry its second pillar industry through the promotion from the enterprise to the cement industry and then to the competitive market of the whole society
