Changes in Hong Kong stocks | Huaxin Construction (06655) rose nearly 3% in the first half of the year, the company's overseas cement profit increased markedly, and there is still plenty of room for overseas production capacity growth

The Zhitong Finance App learned that Huaxin Construction (06655) rose nearly 3%. As of press release, it had risen 2.17% to HK$15.56, with a turnover of HK$25.312,800.

According to the news, Huaxin Materials previously disclosed the interim report. Changjiang Securities pointed out that 2026H1's comprehensive gross margin increased by 2.63 pcts to 31.55% compared with 28.92% in the same period last year, mainly due to an increase in overseas cement sales and sales prices. Specifically, the gross margins of cement, aggregate and concrete were 34.6%, 38.3%, and 16.1%, respectively, compared to 30.2%, 47.9%, and 13.1% in the same period last year. Overall, as of 2026H1 cement revenue accounted for 66.6% of the company's revenue and 46.2% of overseas revenue, making it the core growth engine for the company's performance.

In terms of overseas business, as of 2026H1 has built production bases in 14 overseas countries including Tajikistan, Kyrgyzstan, Uzbekistan, Cambodia, Tanzania, Zambia, South Africa, Mozambique, Oman, Zimbabwe, Brazil, and Nigeria, adding Brazil and Nigeria over the same period last year. The cumulative overseas operation and cement production capacity under construction has reached 41.2 million tons. The bank believes that in the medium term, the company's balance ratio is moderate, the cash guarantee capacity with smooth diversified financing channels is outstanding, and there is plenty of room for growth in overseas production capacity. Combined with regional market dividends plus the company's technical reform and quality improvement, the increase in profit is even more prominent.