The report estimates that the average selling price of cement in the third quarter of this year is about 235 yuan per ton, remaining flat for the quarter, but down 5.3% year-on-year, which is roughly in line with the market price changes in the eastern part of the mainland during the period.
According to the Wise Finance APP, Morgan Stanley released a research report stating that Conch Cement (00914) saw a 40% year-on-year drop in net profit to 5.2 billion yuan (RMB, the same below) in the first nine months, with a third-quarter net profit of 1.87 billion yuan, slightly lower than the bank's expectations. The bank maintains a 'shareholding' rating on the company with a Hong Kong dollar target price of 21.9.
The bank estimates that the self-produced clinker and cement shipments in the third quarter of 2023 are around 69 million tons, down 6.2% year-on-year, a 1.67% decrease from the previous quarter. This larger decline compared to the 3.1% decrease in the first half of this year might be due to industry production adjustments resulting from weak demand. The average selling price in the third quarter this year is expected to be approximately 235 yuan per ton, remaining flat for the quarter but down by 5.3% year-on-year, which is broadly consistent with market price changes in the eastern part of the mainland during the period. Due to a decrease in production costs, the expected gross profit per ton in the third quarter is around 57 yuan, showing a slight change from 52 yuan in the previous quarter and 60 yuan in the same period last year.
