HUAXIN CEMENT (06655) surged more than 3%, reaching HK$19 with a trading volume of HK$27.711 million by the time of writing. Analysts note that the profitability of the cement sector in Q3 2025 was primarily driven by overseas markets, particularly in regions like Africa, where companies such as HUAXIN CEMENT have demonstrated strong earnings advantages. The structural performance of overseas expansion remains a key focus for investors. Domestically, both demand and prices weakened compared to Q2. Industry improvements in supply-demand dynamics hinge on stricter enforcement of production restrictions to curb overcapacity.
HUAXIN CEMENT recently released its financial results for the first three quarters of 2025. Tianfeng Securities highlighted that the company's Q3 revenue grew 1.1% quarter-on-quarter, defying market downturns, largely due to contributions from its overseas operations. Guotai Haitong noted that HUAXIN's international cement profits remain robust, with significant recovery in previously underperforming regions like Central Asia, largely insulated from domestic seasonal price declines.
Following better-than-expected consolidation of its Nigerian operations, HUAXIN plans to spin off its overseas assets for a separate listing. Analysts believe this move will have limited dilution impact while potentially boosting valuation through re-rating of overseas cement assets and accelerating future international acquisitions.
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