HK Stock Market Move | Huaxin Cement (06655) falls more than 6%. The company will release third quarter results tomorrow. Institutions say overseas assets have independent listing plans.

Huaxin Cement (06655) falls more than 6%, with a cumulative increase in stock price of over 110% for the year. As of the time of writing, it has fallen by 5.46% to 15.76 Hong Kong dollars, with a trading volume of 52.4122 million Hong Kong dollars. On the news front, Huaxin Cement is planning to hold a board meeting on October 24 to approve quarterly performance. Guotai Haitong released a research report stating that Huaxin Cement's comprehensive gross profit per ton of cement in July-August is expected to be around 100 yuan, compared to 72 yuan in the same period last year. Overall, overseas cement profits remain strong, with significant recovery in weak areas such as Central Asia compared to last year. The impact of the domestic off-season price decline is relatively small. The report points out that after the consolidation of assets in Nigeria exceeded expectations, Huaxin Cement has independent plans for listing overseas assets, which will help boost valuation through revaluation of overseas cement assets and accelerate future overseas mergers and acquisitions. The market expects Huaxin's operating profits for 2025-2026 to be 2.7 billion and 3.7 billion yuan respectively, with corresponding PEs of 12 times and 9 times. Looking at 2026, overseas profits are expected to contribute 2-2.5 billion in profit, assuming a PE of 15 for overseas divisions and 10 for domestic ones, with an estimated space of 50 billion in the short term. In addition, if domestic anti-insulation measures are effective, there is still room for profit upgrades, and the stock remains a key recommendation.