Replies to post #1857 on China Shuangji Cement Ltd.(fka CSGJ)

[northenlightsk05]

Wihtout producing your own clinker, you only enjoy half of the profit.

For example, CRJI has a production cost basis of 200 RMB per ton. Their current cement price is 350-380 RMB per ton. So their gross profit is about 130-180 RMB per ton. Their net margin is about 80 RMB per ton. I think that CRJI is going do about $16 million net earning.


CSGJ may have 50 RMB per ton of net profit for their new 1 million ton of production. They may have about 30 RMB per ton of net profit for their two Hainan facilities (1 million in total. So the net earning this year will be around $12 million USD. If CSJI gets their permit approval for their new clinker production for their new 1 million production plant, they will add about $7 milion net earning.

The best opportunity for CSGJ and CRJI is next year and I expect that the price will go way up becasue of cement shortage.