Cement plate overall good performance in the beginning of the year

With the end of the Spring Festival holiday, construction projects have been started in succession.February 12, China Cement network data show that the recent price of cement clinker in the Yangtze River Delta, pearl River Delta region is rising frequently.Along with the price of cement raw materials, some cement enterprises in Yunnan province have issued a price increase letter.Does this mean that the cement industry will usher in a wave of price increases?Jiang Yuanlin, senior analyst of Century-old construction network cement, told Securities Daily that although the price of clinker, the main raw material of cement, is currently rising, the cement price lacks support and the short-term market is still weak. It is expected that the cement market will remain stable this year.Since 2022, a-share cement plate out of the independent market.Owen Technology and Ningbo Fidelity are up more than 15 per cent so far this year, while 14 companies are positive, outperforming the broader market.It is worth paying attention to, some of the recent dynamics of cement enterprises, to the market passed its confidence in the development of the industry.On February 10, the cement leading enterprise Tianshan shares announced to issue additional shares, Conch cement, Ding Xin cement (Jidong Cement holding subsidiary), Shangfeng building materials (Shangfeng cement holding subsidiary) and other cement enterprises have followed up investment.Conch cement said that the participation in the fixed increase is focused on the cement industry, to promote the quality and efficiency of the company.Conch Cement and its equity cooperation, is conducive to continue to be stronger, better, bigger the company’s cement industry, but also conducive to maintain the healthy and orderly development of cement industry.Jidong Cement is also in the interactive easy platform to reply to investors for Ding Xin cement to participate in the tianshan share of the concerns of the fixed increase said, the company is optimistic about the development prospects of the cement industry, tianshan shares in the fixed increase can share the cement industry, especially the development of Tianshan shares, at the same time to further enhance the company’s profitability.”The purpose of participating in the private placement of Tianshan shares is to send a signal to the market that you are part of me and you are part of me.In the context of the current slowdown in the epitaxial development of the cement industry, this is more conducive to the coordination and unification of the whole market and the promotion of industrial policies.Cement enterprises should stay together for heating, and unify policies to jointly promote the healthy development of the industry.”Industry insiders told reporters.In terms of operating performance, the cement industry as a whole in 2021 is flat.According to the Classification of China Securities Industry (2016), 13 of the 24 listed companies in the cement industry disclosed the 2021 annual performance forecast, among which 7 companies such as Yatai Group, Shentiandi A, Xizang Tianlu made losses, and 6 companies such as Tianshan Stock, Bowen Technology, And Sichuan Jinding made profits.In the performance forecast, a number of companies said that 2021 due to the coal price rose significantly and cement and clinker sales fell year-on-year, the company’s gross profit decreased.Shentiandi A said that in 2021, due to the impact of relevant industrial policies, the prices of sand, stone and cement, the upstream raw materials of the company’s concrete business, rose significantly, resulting in an increase in the unit operating cost of concrete.In addition, gross profit on sales decreased year over year due to the relatively delayed transmission of the company’s rising operating costs to downstream customers.In order to deal with the adverse factors brought by this, many companies actively respond to the performance of the increase instead of falling.Fujian cement, said in 2021, the company actively consolidate the market, in the province to vigorously expand the provincial market, careful organization of production and business operation, stone refinery in technological upgrading projects full capacity in order to release, Ann sand phase ii project put into production, although the year main business gross margin declined slightly, but the cement sales increased by 6.25% year-on-year, to keep the business income and the main business profit increased steadily.West Construction said that in 2021, while strengthening operation and management, the company will continue to expand market share, maintain year-on-year growth in sales scale and year-on-year growth in net profit. The main reason is that first, the company’s newly expanded capacity is gradually released, and market demand increases, production and sales increase year-on-year, and the company’s revenue steadily increases;Second, due to the epidemic, resources and energy factors, the prices of raw materials such as cement, sand and stone have been increasing frequently. The company relies on the transformation of scientific and technological achievements and centralized procurement of materials to reduce costs and increase efficiency, and actively transmits prices to downstream industries to ensure reasonable profit margins and improve operating results.(Securities Daily)

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