Comprehensive review: In the first half of 2025, Shangfeng Cement achieved an operating income of 2.272 billion yuan, a year-on-year decrease of 5.02%; the net profit attributable to parent company was 247 million yuan, a year-on-year increase of 44.53%. In the first half of this year, Shangfeng Cement continued to promote the development strategy of "one main and two wings", the profitability of the main cement building materials industry remained at a leading low level in the industry, the new economic equity investment business continued to expand, and continued to contribute positive investment returns.
Figure 1 and 2: Revenue of Shangfeng Cement in the first half of 2025, Profit trend
Source: Cement Big Data (https://data.ccement.com/)
Decline in sales volume of cement products Profitability Industry leading
Shangfeng Cement is mainly engaged in cement, aggregate, concrete and other building materials business. As well as new economic equity investment and other emerging businesses, the cement business is the company's basic business, the proportion of revenue is maintained at more than 80% all the year round. The business area covers East China (Yangtze River Delta), Northwest China (Xinjiang, Ningxia), Southwest China (Guizhou), South China (Guangxi) and North China (Inner Mongolia), among which East China is the core business area, accounting for more than 60% of the revenue. In the first half of this year, the recovery of demand in the Yangtze River Delta region was slow, and the shipments of enterprises were poor. Mainly affected by this, the company's comprehensive sales volume of cement clinker was 8.907 million tons, down 4.2% year-on-year, and the operating income of cement products was 1.97 billion yuan, down 4.2% year-on-year.
Figure 3: Decline
in comprehensive sales volume of cement clinker Data source: Cement Big Data (https://data.ccement.com/)
Despite the decline in comprehensive sales volume of cement clinker, However, thanks to the decline in coal purchasing prices and fine management, the company's comprehensive gross profit rate of cement clinker reached 30.1% in the first half of 2025, which was 6.7 percentage points higher than same period last year, and the absolute gross profit rate was slightly lower than that of Huaxin Cement (mainly driven by overseas), which exceeded most major domestic listed companies and was in the industry. Cement products have strong profitability.
Figure 4: Comparison of cement clinker gross profit margin of some enterprises (%)
Data source: Cement Big Data (https://data.ccement.com/)
In the first half of this year, due to the decline in sales of cement products, the company's operating income declined. Finally, it recorded 2.272 billion yuan, down 5.02% year on year. In terms of three fees, the company continued to promote the work of "controlling fees and increasing efficiency", and did a good job in fine operation. The cost of three fees was 349 million yuan, down 11.2% year on year, and the rate of three fees decreased by 1.1 percentage points to 15.36%. In addition, the decline in coal costs has reduced production costs, and the company's profits have improved substantially. In the first half of the year, the net profit returned to the mother was 247 million yuan, up 44.53% from the same period last year, and the return on equity was 2.74%, up 0.8 percentage points.
Table 1: Main financial indicators
of Shangfeng Cement in the first half of 2025 Data source: Cement big data (https://data.ccement.com/)
Development and growth of equity investment business
In addition to the main building materials industry, new economic equity investment is another important business sector of the company, which mainly invests in new materials, new energy, semiconductor and other fields with large growth space. In the first half of this year, the company added equity investment in new sharp photomask, Fangjing Science and Technology, Yineng Science and Technology and other projects. At present, many investment project enterprises have entered the stage of listing guidance. In the first half of the year, the company's overall investment income was 87 million yuan, of which the new economic equity investment income was 4.03 million yuan, and the equity investment business continued to grow and contribute positively.
Figure 5: Trend
of investment income of Shangfeng Cement Source: Cement Big Data (https://data.ccement.com/)
Outlook for the second half of the year: The sales volume of cement will continue to decline. In terms of
building materials business, the demand in the Yangtze River Delta region, the core business area of the company, is weak, and it is expected that the decline in sales of cement products of the company may expand. In addition, the competition is fierce, although the peak has been staggered many times, the actual effect is very little, the price rise resistance is heavy, and the downward pressure of volume and price is great; In terms of equity investment in the new economy, the process of investment projects is complex, the cycle is long, the return is uncertain, and it is expected that there will be no obvious short-term returns. On the whole, Shangfeng Cement is facing greater operating pressure in the second half of the year. (This article does not constitute investment advice)
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