As of March 30, 16 cement enterprises, including Anhui Conch Cement Company Limited(600585) , Gansu Qilianshan Cement Group Co.Ltd(600720) etc., have issued annual reports for 2021. According to the statistics of China stock market news choice, among the cement listed enterprises that have issued annual reports, the net profit attributable to the parent of 10 enterprises declined in varying degrees last year, and 7 enterprises increased their income without increasing their profits. The above-mentioned enterprises said in their annual reports that the rise in coal prices has a great impact on the company's costs, thus affecting the year-on-year decline in performance.
According to the data released by the Ministry of industry and information technology, the operating revenue of the cement industry in 2021 was 1075.4 billion yuan, a year-on-year increase of 7.3%, and the total profit was 169.4 billion yuan, a year-on-year decrease of 10%. Chen Bolin, Deputy Secretary General of China Cement Association and President of digital cement network, said, "in 2021, although the overall benefit level of the cement industry has weakened year-on-year, the toughness is still there, and the industry profit is still at a historically good level."
In March 2022, cement prices in many parts of the country increased. Some analysts believe that in 2022, cement will still face the pressure brought by high costs, but with the slow recovery of demand and the landing of high growth infrastructure and fixed asset investment, the profitability of the industry will remain within a reasonable range.
demand fluctuation + cost rise
7 enterprises increase income without increasing profit
In 2021, the cement industry presents a situation of fluctuating market demand and rising costs. From the demand side, affected by the sharp decline in the growth rate of real estate and infrastructure investment, the demand for cement shows the characteristics of "high before low". According to the statistics of the National Bureau of statistics, the national cement output was 2.363 billion tons in 2021, a year-on-year decrease of 1.2%.
In terms of price, in the second half of last year, affected by multiple factors, the supply was insufficient, the output fell, the cost of cement rose sharply, and the market price showed a trend of restraining first and then increasing.
In 2021, coal prices rose sharply and peaked in mid October 2021. In 2021, the average market price of Qinhuangdao Power Coal q5500 was 1031 yuan / ton, an increase of about 79% over the average price of 577 yuan / ton in 2020. The average price of main coking coal in Jingtang Port is 2515 yuan / ton, an increase of about 68% over the average price of 1496 yuan / ton in 2020. According to the monitoring of the digital cement network of China Cement Association, the average price of cement in the national cement market in 2021 was 486 yuan / ton, an increase of 10.7% over 2020.
Although the price of cement has increased compared with that in 2020, the net profit attributable to the parent company of Tianrui cement, Anhui Conch Cement Company Limited(600585) , Xinjiang Tianshan Cement Co.Ltd(000877) , shanshui cement and other companies has declined to varying degrees due to the rise of coal price.
According to the statistics of China stock market news choice, among the 10 cement enterprises with year-on-year decline in net profit attributable to parent company, 7 enterprises such as Tianrui cement, shanshui cement, China Resources Cement, Xinjiang Tianshan Cement Co.Ltd(000877) etc. have increased their income without increasing their profits. Among them, the parent net profit of Tianrui cement decreased the most year-on-year. According to the annual report of Tianrui cement, the company achieved an operating revenue of 12.717 billion yuan in 2021, an increase of 4.5% year-on-year; The profit attributable to the owners of the company was 1.2 billion yuan, a year-on-year decrease of 35.5%; The gross profit margin decreased from about 34.5% in 2020 to about 25.4% in 2021.
cement industry is ushering in
high cost and high price period
Since this year, with the start of construction in spring in March, cement prices have been raised in Shanxi, Shaanxi, Henan, Beijing, Tianjin, Tangshan, Baoding, Qinhuangdao and adjacent Liaoning regions. Specifically, a number of enterprises in Jincheng, Shanxi Province have notified to raise the cement price by 30 yuan / ton; From March 7 to March 15, Henan cement price was increased by 100 yuan / ton; Shaanxi cement enterprises such as Fuping cement, Shengwei building materials and Jinyu Tangshan Jidong Cement Co.Ltd(000401) have announced that the price of cement will be increased by 60 yuan / ton from March 28.
The relevant person in charge of a cement enterprise in Shaanxi told the reporter of Securities Daily: "the increase in cement price is mainly due to the rise of raw materials and the increase of production costs of the company."
A building materials analyst of a securities firm told reporters that cement is ushering in a period of high cost and high price. How the government led infrastructure and real estate policies are the key factors affecting the prosperity of the cement industry in this period.
Since the beginning of this year, all ministries and commissions have strengthened the implementation of steady growth policies, and moderately advanced infrastructure investment around the major national strategic deployment and the 14th five year plan. The central budget allocated 640 billion yuan of investment, higher than the levels of 600 billion yuan and 610 billion yuan in the past two years. At the same time, it is planned to arrange 3.65 trillion yuan of special bonds of local governments this year, which is the same as last year. It is mainly used for project follow-up financing, rural construction, urban renewal and other projects benefiting the people.
Ge Xin, a researcher at Lange Iron and Steel Research Center, told reporters: "from the perspective of capital flow, since the beginning of the year, many major projects have been started intensively, and the investment scale has been significantly increased. In the first two months, the investment of special bonds in infrastructure related fields accounted for nearly 64%, an increase of about 10 percentage points compared with last year."
In addition, from January to February this year, the growth rate of real estate investment also changed from negative to positive, and the growth rate of infrastructure investment further increased. Data show that from January to February this year, real estate investment and infrastructure investment increased by 3.7% and 8.6% year-on-year; The completed investment in fixed assets increased by 20.9% year-on-year.
