Tibet Tianlu (600326.SH) announced on July 9 that, according to preliminary calculations by the finance department, it is expected to achieve a net income attributable to shareholders of the listed company of -99 million yuan to -60 million yuan in the first half of 2024. The expected loss will decrease by 136.3446 million yuan to 175.3446 million yuan compared to the same period last year (statutory disclosure data). The year-on-year decrease in losses is expected to be 57.93% to 74.51%. After deducting non-recurring gains and losses, the company expects to achieve a net income attributable to shareholders of the listed company after deducting non-recurring gains and losses of -135 million yuan to -95 million yuan in the first half of 2024. The expected loss will decrease by 26.7684 million yuan to 66.7684 million yuan compared to the same period last year (statutory disclosure data). The year-on-year decrease in losses is expected to be 16.55% to 41.27%.
Construction sector: The competition in the Tibet construction market has intensified, and the company's existing projects have been successively completed, with limited incremental projects. Therefore, the year-on-year decrease in revenue is relatively large. In addition, due to the state's strengthened management of government investment projects in key provinces such as Chongqing, new government investment projects are strictly controlled, and existing government investment projects under construction are cleaned up and standardized. Therefore, the operating income and profits of Chongqing Chongjiao Renewable Resources Development Co., Ltd.'s construction and building materials sector will be affected to varying degrees during the forecast period.
Building materials sector: The overall effective demand for Tibet cement market is weak, and the market competition is more intense. The company's cement sales and prices have decreased year-on-year. Tibet cement enterprises highly rely on resources such as coal from outside the region, and the space for cost reduction is limited, which makes it difficult to offset the impact of price reductions. Therefore, the operating income and profits of Tibet Gaozheng Building Materials Co., Ltd. and Changdu Gaozheng Building Materials Co., Ltd. are expected to decrease year-on-year during the forecast period.