Huaxin Cement increased its net profit by 603.36% in the first half of the year

On the evening of the 21st, Huaxin Cement released a semi-annual report showing that in the first half of 2011, the company achieved the best operating results in the first half of 2011 thanks to the growth in cement demand and the increase in cement prices.

In the first half of this year, Huaxin Cement realized a main business income of 5.55 billion yuan, an increase of 71.19% year-on-year; net profit attributable to shareholders of the parent company was 542 million yuan, an increase of 603.36% year-on-year.

In the first half of the year, the company achieved sales of 17.1 million tons of cement and clinker, an increase of 4.02 million tons over the same period of last year, an increase of 30.7%; sales of concrete 846,600 square meters, an increase of 22.56%. The average selling price of cement was RMB 304.98/ton (excluding tax), which was RMB 76.52/ton higher than that of the same period of last year. The operating profit margin was 28.65%, up 13.37% from the same period of last year.

In the first half of this year, Huaxin Cement completed the acquisition of Hubei Jinlong Cement Co., Ltd., with a new cement production capacity of 2.3 million tons/year; Wanyuan 7MW pure low temperature waste heat power generation project is connected to the grid for power generation; a new concrete mixing plant is established, and the new capacity is 20 Million / year; Wuxue daily treatment of 200 tons of domestic garbage pretreatment plant project is progressing smoothly, the project has been put into production trial operation in May, the company's environmental protection and environmental services business made a breakthrough.

Xu Wen, an analyst at Xiangcai Securities, said that Huaxin Cement will undergo a strategic transformation from cement Red Sea to environmental protection Blue Ocean, and the environmental protection industry will be the focus of future company strategic transformation.

Xu Wen believes that the current competition in the cement industry is fierce, but the environmental protection industry, especially in the joint treatment of municipal waste in cement kilns, has only just begun. It has great opportunities. The WTFR business and E&E business will create new sources of profits for the company and be able to complement the cement business and smooth the company's performance when the cement business fluctuates.

Huaxin Cement expects that the cumulative net profit from the beginning of the year to the end of the next reporting period will increase by more than 50% compared with the same period of last year due to the substantial increase in cement prices over the same period of the previous year and the expansion of the company’s production and sales.

Throughout the first half of the year, the country’s cement industry maintained rapid growth, and the performance of major cement listed companies has seen explosive growth. The industry's leading conch cement realized a net profit of 5.994 billion yuan in the first half of the year, an increase of 233.62% over the same period of last year; earnings per share of 1.13 yuan.

The demand and prices of China's cement market exceeded expectations. Statistics from the National Bureau of Statistics show that from January to June, a total of 950 million tons of cement were produced by enterprises above designated size, an increase of 19.57% year-on-year.