Oriental Fortune Choice data shows that as of March 29, there were a total of 102 A-share listed companies in Hubei. Among them, 32 companies disclosed their 2018 annual reports.
Among the above companies, Huaxin Cement Co., Ltd., registered in Huangshi, Hubei, (hereinafter referred to as "Huaxin Cement", stock code: 600801), ranked second among the most profitable listed companies in Hubei, only 255 million yuan lower than the first place Gezhouba.
However, the domestic cement industry currently presents a ", super, and strong " pattern, and Huaxin Cement still has a huge gap compared with the largest Conch Cement (600585). How to go further from the "stronger" lineup is a question that Huaxin Cement needs to think about in the future.
Net profit of 5.7 billion
2018, Huaxin Cement performed well.
Among the Hubei A-share listed companies that have released last year's annual report, Andao Mai A, Changfei Fiber and Baichuan Energy ranked 3-5th in net profit attributable to shareholders, but the data of the three companies combined are not as high as Huaxin Cement.
From the perspective of return on assets, among the 32 Hubei listed companies that have released their annual reports, Huaxin Cement also temporarily ranked first with 36.27%. Compared with A-share peers, this performance is also quite considerable.
According to a query by fulcrum finance reporters, there are 17 listed companies in the A-share cement industry. Among the eight listed companies that have released their annual reports, Huaxin Cement's revenue ranking is only lower than Conch Cement and Jidong Cement, ranking third.
It is worth noting that in 2012, Huaxin Cement ranked third in the A-share industry, surpassing Jidong Cement with revenue of 15.984 billion yuan in 2013, and has since ranked second until 2017.
fulcrum financial reporters found that the reason why the ranking has been overtaken now is that Jinyu Group, the controlling shareholder of Jidong Cement, injected the cement assets it holds into the company, causing its performance to rise sharply. However, Huaxin Cement's net profit attributable to shareholders last year was 5.705 billion yuan, more than twice the 2.56 billion yuan of Hedong Cement during the same period, temporarily ranking second in the industry. These achievements of
are to some extent related to Huaxin Cement’s early implementation of vertical integration of .
Currently, the company has developed concrete, aggregate , cement equipment and engineering, new building materials and environmental protection industries based on its main cement business, and has a certain ability to compete in collaboration.
It is worth noting that according to Choice data, from the annualized investment return rate of investment in the secondary market, as of March 29, Huaxin Cement ranked first among A-share peers with a score of 67.60%.
has long been "taken on the side"
Observe the revenue and profits of the 8 A-share cement industry listed companies that have released their annual reports. You can see that the situation of "one super, many strong" has already appeared.
Conch Cement's revenue last year was 128.4 billion yuan and its net profit attributable to shareholders of RMB 30.636 billion yuan, both of which have exceeded the total of the other 7 listed companies.
In addition, don’t forget another building materials industry giant - China Building Materials , which is listed on the H-share market. The company’s revenue reached a terrible 218.955 billion yuan last year, and cement manufacturing is its important business area.
In recent years, there have been many cases of large enterprises in the domestic cement industry merger and large enterprises abolishing small enterprises. The same is true from a global perspective. In 2015, French Lafarge and Swiss HORI announced the merger to form Lafarge HORI, becoming the world's largest cement manufacturer.
Because of this, some investors speculate that Huaxin Cement will be merged by China Building Materials or Conch Cement. But this speculation is a bit worrying, because Huaxin Cement has long been "taken on the side" and its controlling shareholder is Lafarge Horizon.
In 1993, when it was first listed, Huaxin Cement was a local state-owned enterprise. Later, Lafarge Hauri became its controlling shareholder, and the company was also changed to a foreign-invested joint-stock company.
Today, Huaxin Cement has become Lafarge Hauri's China asset integration platform. Last year, it acquired Lafarge China's related assets in Chongqing.
If you want to go further from the "stronger" camp, continuous mergers and acquisitions are indispensable. The reporter tried to contact the secretary's office on issues related to future mergers and acquisitions, but no reply was obtained as of press time.
cyclical risks still exist
Since 1985, China's cement annual output has always ranked first in the world. As China's economy enters a "new normal", China's cement demand has peaked and declined since 2014, and the cement industry has entered a stage of comprehensive overcapacity.
From the data, the 17 listed companies in the A-share cement industry were in a downturn from 2014 to the beginning of 2016.
After the implementation of the supply-side structural reform, some backward cement production capacity has withdrawn from the market, the supply and demand relationship in the industry has been improved, and cement prices have rebounded, thus driving the prosperity of the cement industry. Simply put, in the years after 2016, it is difficult for the cement industry giants to make money without making money.
However, the situation has changed again now.
In the past two years, as the country has become increasingly strict with the cement industry's mine governance and environmental emission control, coupled with the increase in the staggered production shutdown time and the price of raw fuel materials, the cement cost has increased significantly.
In response to this, Huaxin Cement stated that it will promote the procurement model of "unified purchase" + "online shopping" to reduce the procurement cost of raw fuel materials and increase the use of alternative fuels.
In addition, the company has begun to layout and expand the cement-based new building materials business such as ultra-high strength concrete and special mortar, trying to develop new profit growth points.
However, Huaxin Cement admitted that the company is a new entrant in the above fields. It still takes a process to cultivate professionals such as business and technology research and development. The operation, management and marketing models of the business are still being explored. There is still a risk to meet expectations.
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Reporter丨Jiang Li Intern丨Yang Youan
Editing丨Wu Ling
Produced by 丨Hubei Daily Media Group fulcrum magazine
