Profitability of aggregate industry in the fourth quarter

2021-11-09

The recent fall in coal costs will alleviate the pressure on costs, which is conducive to the growth of subsequent performance. If coal prices fall steadily, the gross profit margin will rise to last year’s level. In addition, the recent introduction of new energy consumption standards will have an important impact on cement energy saving and consumption reduction, upgrading and upgrading. Therefore, in addition to vigorously developing sand and gravel aggregate business, cement manufacturers must also strengthen their own work focusing on energy conservation and carbon reduction.

Recently, Huaxin Cement released its third quarterly report. In the first three quarters, operating income was 22.454 billion yuan, an increase of 10.01% year-on-year; attributable net profit was 3.563 billion yuan, a year-on-year decrease of 11.46%; Q3 single-quarter performance was 1.125 billion yuan, a year-on-year decrease of 36.5%. Taxes and surcharges of 31.45% in the third quarter were mainly due to the increase in aggregate and cement sales and the increase in resource taxes.

Q4 High price elasticity is worth looking forward to. Under the current dual control, cement prices across the country, especially in the southern region, have risen sharply since September. At present, cement prices in almost all regions have reached historical highs. Yunnan and Guangxi, as dual-control first-level regions, lead the country in price flexibility. Since entering Q4 in September, the regional production restrictions have not been significantly relaxed. Therefore, the market is more deduced from the process of losing volume and increasing prices to less losing volume and increasing prices. Q4 price elasticity is worth looking forward to.