The cement industry has always been a “cash cow” industry, and the profitability of leading enterprises in the industry is also relatively stable. On March 25, Anhui Conch Cement Company Limited(600585) ( Anhui Conch Cement Company Limited(600585) . Sh, 00914. HK) disclosed its annual report for 2021, which showed that the company’s operating income and net profit attributable to shareholders of listed companies were 167953 billion yuan and 33.267 billion yuan respectively, with increases and decreases of – 4.73% and – 5.38% respectively compared with the same period of the previous year. This is also the first time in Anhui Conch Cement Company Limited(600585) years that both revenue and net profit have declined, but the company still launched a generous dividend plan of 23.8 yuan per 10 shares.
According to the 2021 annual report, Anhui Conch Cement Company Limited(600585) is mainly engaged in the production and sales of cement, commercial clinker, aggregate and concrete. The company’s cement varieties mainly include 32.5-grade cement, 42.5-grade cement and 52.5-grade cement. The products are widely used in large-scale national infrastructure construction projects such as railways, highways, airports and water conservancy projects, as well as urban real estate development, cement products and rural markets. The company has established more than 500 direct selling and auxiliary marketing modes, covering more than 500 overseas markets.
According to the financial data over the years, the year-on-year growth rates of Anhui Conch Cement Company Limited(600585) operating revenue from 2018 to 2020 were 70.5%, 22.3% and 12.23% respectively; The growth rate of net profit attributable to shareholders of the parent company was 88.05%, 12.67% and 4.58% respectively. From the above financial data, although the growth rate of the company’s revenue scale shows a decreasing trend year by year, considering the total revenue volume of the company, Anhui Conch Cement Company Limited(600585) report card is still brilliant.
From the financial data of Anhui Conch Cement Company Limited(600585) 2021, the positive growth trend of the company’s revenue and net profit for many years has been broken. By industry, during the reporting period, Anhui Conch Cement Company Limited(600585) cement clinker self product sales volume was 304 million tons, a year-on-year decrease of 6.53%; The sales revenue from products reached 111653 billion yuan, a year-on-year increase of 4.46%; The sales cost of self-made products was 62.651 billion yuan, a year-on-year increase of 10.55%; The comprehensive gross profit margin of self-made products was 43.89%, down 3.09 percentage points from the same period of last year. The company achieved 105 million tons of sales volume of cement clinker trading business, with a year-on-year decrease of 18.00%; Trade business income was 36.571 billion yuan, a year-on-year decrease of 10.95%; The cost of trade business was 36.496 billion yuan, a year-on-year decrease of 10.93%.
In terms of varieties, Anhui Conch Cement Company Limited(600585) self product gross profit margin of grade 42.5 cement, grade 32.5 cement and clinker decreased by 3.17 percentage points, 1.64 percentage points and 5.33 percentage points respectively year-on-year. The comprehensive gross profit margin of aggregate and stone was 65.69%, a year-on-year decrease of 2.64 percentage points; The comprehensive gross profit margin of commercial concrete was 19.14%, down 3.00 percentage points year-on-year.
According to the financial data of the above products, the gross profit margin of the company’s products has declined to a certain extent Anhui Conch Cement Company Limited(600585) in the annual report, the company’s operating profit, total profit and net profit attributable to shareholders of listed companies decreased by 6.89%, 6.41% and 5.38% respectively compared with the same period last year; Affected by the sharp rise in raw coal prices, the comprehensive cost of cement clinker of the company increased by 17.78% year-on-year.
From the performance of the secondary market, the current market value of the company has shrunk by about 40% compared with the previous high. According to the list of the top ten shareholders disclosed in the 2021 annual report, some public offering institutions chose to increase their positions in the fourth quarter, but Hillhouse capital and he Hengjian withdrew from the list of the top ten shareholders of the company.
