Understanding the Market | ASIA CEMENT CH rises over 5%, with mid-term net profit attributable to shareholders of 114 million yuan; institutions say limiting overproduction may be the core of the industry's anti-involution
Asia Cement (China) rose over 5%, as of the time of writing, up 4.93%, at HKD 2.98, with a trading volume of HKD 9.2955 million. In terms of news, recently, Asia Cement (China) released its performance for the six months ending June 30, 2025, with revenue of RMB 2.496 billion, a year-on-year decrease of 7.2%; the profit attributable to the company's owners was RMB 114 million, compared to a loss of RMB 405 million in the same period last year; basic earnings per share were RMB 0.073. The announcement stated that the decrease in revenue during the period was mainly due to a decline in the group's product sales. Guotai Junan previously pointed out that the main policy focus expected to reverse the current over-competition in the cement industry is to limit overproduction, meaning stricter restrictions on daily and annual production capacities for enterprises. The core focus going forward will be on the implementation of policy pilot programs. It is estimated that if fully implemented, the average capacity utilization rate of the national cement industry could increase from 50% to 70%. More critically, it can quantify the constraints on the supply side of the staggered production plan, which is beneficial for further enhancing the success rate of stabilizing prices through staggered production. Recently, the catalysis of hydropower projects has prompted expectations for a bottoming out and recovery in demand for key industry projects, achieving a certain resonance between supply and demand expectations
According to Zhitong Finance APP, Asia Cement (China) (00743) rose over 5%, and as of the time of writing, it was up 4.93%, trading at HKD 2.98, with a transaction volume of HKD 9.2955 million.
In terms of news, recently, Asia Cement (China) announced its performance for the six months ending June 30, 2025, with revenue of RMB 2.496 billion, a year-on-year decrease of 7.2%; the profit attributable to the company's owners was RMB 114 million, compared to a loss of RMB 405 million in the same period last year; basic earnings per share were RMB 0.073. The announcement stated that the decrease in revenue during the period was mainly due to a decline in the group's product sales.
CITIC Securities previously pointed out that the main policy focus expected to reverse the current over-competition in the cement industry is to limit overproduction, meaning stricter restrictions on daily and annual production capacities for enterprises. The core focus going forward will be on the implementation of policy pilot programs. It is estimated that if fully implemented, the average capacity utilization rate of the national cement industry could increase from 50% to 70%. However, more critically, it can quantify the management of staggered supply constraints, which is beneficial for further enhancing the success rate of price stabilization through staggered supply. Recently, the catalysis of hydropower projects has prompted expectations for a bottoming recovery in demand for key industry projects, leading to a certain resonance between supply and demand expectations
