Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to HK$1.63, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 8x in the Basic Materials industry in Hong Kong. Total returns to shareholders of 114% over the past three years. New Risk • Jun 08
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.9% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Announcement • May 30
West China Cement Limited Approves Final Dividend for the Year Ended 31 December 2025 West China Cement Limited at the AGM held on 29 May 2026, approved to declare a final dividend of RMB 0.048 per ordinary share for the year ended 31 December 2025 to the shareholders of the Company which shall be paid out of the distributable reserve of the Company. Upcoming Dividend • May 27
Upcoming dividend of CN¥0.048 per share Eligible shareholders must have bought the stock before 03 June 2026. Payment date: 31 July 2026. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Hong Kong dividend payers (6.9%). Lower than average of industry peers (4.1%). Reported Earnings • Apr 28
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥0.16 (up from CN¥0.12 in FY 2024). Revenue: CN¥9.62b (up 15% from FY 2024). Net income: CN¥879.6m (up 41% from FY 2024). Profit margin: 9.1% (up from 7.5% in FY 2024). Revenue missed analyst estimates by 6.4%. Earnings per share (EPS) also missed analyst estimates by 20%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the Basic Materials industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 37% per year, which means it is well ahead of earnings. Major Estimate Revision • Apr 21
Consensus EPS estimates fall by 33%, revenue upgraded The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast increased from CN¥10.6b to CN¥11.0b. EPS estimate fell from CN¥0.255 to CN¥0.17 per share. Net income forecast to shrink 10% next year vs 17% growth forecast for Basic Materials industry in Hong Kong . Consensus price target down from HK$2.88 to HK$2.12. Share price was steady at HK$2.52 over the past week. Major Estimate Revision • Apr 08
Consensus revenue estimates decrease by 10% The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast fell from CN¥11.9b to CN¥10.6b. EPS estimate unchanged from CN¥0.26 per share at last update. Basic Materials industry in Hong Kong expected to see average net income growth of 18% next year. Consensus price target broadly unchanged at HK$2.85. Share price was steady at HK$2.29 over the past week. Declared Dividend • Mar 29
Dividend of CN¥0.048 announced Shareholders will receive a dividend of CN¥0.048. Ex-date: 3rd June 2026 Payment date: 31st July 2026 Dividend yield will be 2.1%, which is lower than the industry average of 11%. Sustainability & Growth Dividend is covered by earnings (30% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 37% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 82% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 25
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥0.16 (up from CN¥0.12 in FY 2024). Revenue: CN¥9.62b (up 15% from FY 2024). Net income: CN¥879.6m (up 41% from FY 2024). Profit margin: 9.1% (up from 7.5% in FY 2024). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 6.4%. Earnings per share (EPS) also missed analyst estimates by 20%. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 6.6% growth forecast for the Basic Materials industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 33% per year, which means it is well ahead of earnings. Announcement • Mar 24
West China Cement Limited, Annual General Meeting, May 29, 2026 West China Cement Limited, Annual General Meeting, May 29, 2026. Announcement • Mar 09
West China Cement Limited to Report Fiscal Year 2025 Results on Mar 23, 2026 West China Cement Limited announced that they will report fiscal year 2025 results on Mar 23, 2026 Major Estimate Revision • Mar 08
Consensus EPS estimates fall by 20% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥10.6b to CN¥10.3b. EPS estimate also fell from CN¥0.25 per share to CN¥0.20 per share. Net income forecast to grow 33% next year vs 14% growth forecast for Basic Materials industry in Hong Kong. Consensus price target down from HK$3.16 to HK$2.90. Share price fell 30% to HK$2.12 over the past week. New Risk • Mar 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (9.9% operating cash flow to total debt). Minor Risk Share price has been volatile over the past 3 months (11% average weekly change). Valuation Update With 7 Day Price Move • Mar 05
Investor sentiment deteriorates as stock falls 30% After last week's 30% share price decline to HK$2.07, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 9x in the Basic Materials industry in Hong Kong. Total returns to shareholders of 146% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$3.94 per share. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$3.18, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 8x in the Basic Materials industry in Hong Kong. Total returns to shareholders of 279% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$4.08 per share. Buy Or Sell Opportunity • Feb 02
Now 23% undervalued Over the last 90 days, the stock has risen 6.7% to HK$3.17. The fair value is estimated to be HK$4.10, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.9% over the last 3 years. Earnings per share has declined by 26%. Revenue is forecast to grow by 32% in 2 years. Earnings are forecast to grow by 94% in the next 2 years. Buy Or Sell Opportunity • Dec 08
Now 21% undervalued Over the last 90 days, the stock has risen 12% to HK$3.07. The fair value is estimated to be HK$3.89, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.9% over the last 3 years. Earnings per share has declined by 26%. Revenue is forecast to grow by 35% in 2 years. Earnings are forecast to grow by 101% in the next 2 years. Buy Or Sell Opportunity • Nov 10
Now 21% undervalued Over the last 90 days, the stock has risen 31% to HK$3.06. The fair value is estimated to be HK$3.86, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.9% over the last 3 years. Earnings per share has declined by 26%. Revenue is forecast to grow by 35% in 2 years. Earnings are forecast to grow by 101% in the next 2 years. Valuation Update With 7 Day Price Move • Oct 23
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$3.09, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 9x in the Basic Materials industry in Hong Kong. Total returns to shareholders of 353% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$3.95 per share. Major Estimate Revision • Sep 10
Consensus EPS estimates increase by 11%, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from CN¥10.8b to CN¥10.6b. EPS estimate rose from CN¥0.235 to CN¥0.26. Net income forecast to grow 62% next year vs 19% growth forecast for Basic Materials industry in Hong Kong. Consensus price target up from HK$1.64 to HK$2.69. Share price fell 3.1% to HK$2.81 over the past week. Reported Earnings • Aug 26
First half 2025 earnings released: EPS: CN¥0.14 (vs CN¥0.071 in 1H 2024) First half 2025 results: EPS: CN¥0.14 (up from CN¥0.071 in 1H 2024). Revenue: CN¥5.42b (up 46% from 1H 2024). Net income: CN¥748.3m (up 93% from 1H 2024). Profit margin: 14% (up from 11% in 1H 2024). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 2.3% growth forecast for the Basic Materials industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 39% per year, which means it is well ahead of earnings. Announcement • Aug 15
West China Cement Limited to Report First Half, 2025 Results on Aug 25, 2025 West China Cement Limited announced that they will report first half, 2025 results on Aug 25, 2025 Valuation Update With 7 Day Price Move • Jul 24
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to HK$2.12, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 9x in the Basic Materials industry in Hong Kong. Total returns to shareholders of 158% over the past three years. Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$1.51, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 7x in the Basic Materials industry in Hong Kong. Total returns to shareholders of 74% over the past three years. Announcement • May 23
West China Cement Limited Approves Final Dividend for the Year Ended December 31, 2024 West China Cement Limited at the AGM held on 23 May 2025 approved to declared a final dividend of RMB 0.034 per ordinary share for the year ended 31 December 2024 to the shareholders of the Company which shall be paid out of the distributable reserve of the Company. Upcoming Dividend • May 21
Upcoming dividend of CN¥0.034 per share Eligible shareholders must have bought the stock before 28 May 2025. Payment date: 31 July 2025. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 2.5%. Lower than top quartile of Hong Kong dividend payers (7.7%). Lower than average of industry peers (4.0%). Reported Earnings • Apr 27
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.12 (up from CN¥0.077 in FY 2023). Revenue: CN¥8.34b (down 7.5% from FY 2023). Net income: CN¥626.2m (up 49% from FY 2023). Profit margin: 7.5% (up from 4.7% in FY 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 13%. Earnings per share (EPS) also missed analyst estimates by 35%. Revenue is forecast to grow 19% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Basic Materials industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to HK$1.47, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 10x in the Basic Materials industry in Hong Kong. Total returns to shareholders of 37% over the past three years. New Risk • Apr 07
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.9% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks High level of debt (83% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Declared Dividend • Mar 26
Dividend of CN¥0.034 announced Shareholders will receive a dividend of CN¥0.034. Ex-date: 28th May 2025 Payment date: 31st July 2025 Dividend yield will be 2.3%, which is lower than the industry average of 11%. Sustainability & Growth Dividend is covered by earnings (45% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 1.3% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 235% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 25
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.001. Revenue: CN¥8.34b (down 7.5% from FY 2023). Net income: CN¥626.2m (up 49% from FY 2023). Profit margin: 7.5% (up from 4.7% in FY 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 13%. Earnings per share (EPS) also missed analyst estimates by 35%. Revenue is forecast to grow 26% p.a. on average during the next 2 years, compared to a 4.2% growth forecast for the Basic Materials industry in Hong Kong. Announcement • Mar 25
West China Cement Limited, Annual General Meeting, May 23, 2025 West China Cement Limited, Annual General Meeting, May 23, 2025. Announcement • Mar 13
West China Cement Limited to Report Fiscal Year 2024 Results on Mar 24, 2025 West China Cement Limited announced that they will report fiscal year 2024 results on Mar 24, 2025 Recent Insider Transactions Derivative • Dec 12
Independent Non-Executive Director exercised options and sold HK$154k worth of stock On the 9th of December, Kong Wai Lee exercised options to acquire 700k shares at no cost and sold these for an average price of HK$0.22 per share. This trade did not impact their existing holding. As of today, Kong Wai currently holds no shares directly. Company insiders have collectively bought HK$1.6m more than they sold, via options and on-market transactions, in the last 12 months. Valuation Update With 7 Day Price Move • Nov 21
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$1.50, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 10x in the Basic Materials industry in Hong Kong. Total returns to shareholders of 36% over the past three years. Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$1.02, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 10x in the Basic Materials industry in Hong Kong. Total loss to shareholders of 16% over the past three years. Major Estimate Revision • Aug 26
Consensus revenue estimates fall by 11% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥11.4b to CN¥10.2b. EPS estimate fell from CN¥0.258 to CN¥0.20 per share. Net income forecast to grow 409% next year vs 28% growth forecast for Basic Materials industry in Hong Kong. Consensus price target down from HK$1.42 to HK$1.36. Share price fell 23% to HK$0.84 over the past week. Reported Earnings • Aug 22
First half 2024 earnings released: EPS: CN¥0.071 (vs CN¥0.098 in 1H 2023) First half 2024 results: EPS: CN¥0.071 (down from CN¥0.098 in 1H 2023). Revenue: CN¥3.70b (down 16% from 1H 2023). Net income: CN¥386.9m (down 27% from 1H 2023). Profit margin: 11% (down from 12% in 1H 2023). Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Basic Materials industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Announcement • Aug 07
West China Cement Limited to Report First Half, 2024 Results on Aug 19, 2024 West China Cement Limited announced that they will report first half, 2024 results on Aug 19, 2024 Announcement • May 26
West China Cement Limited Approves Final Dividend for the Year Ended 31 December 2023 West China Cement Limited at its AGM held on 24 May 2024, approved final dividend of RMB 0.023 per ordinary share for the year ended 31 December 2023 to the shareholders of the Company which shall be paid out of the distributable reserve of the Company. Upcoming Dividend • May 22
Upcoming dividend of CN¥0.023 per share Eligible shareholders must have bought the stock before 29 May 2024. Payment date: 31 July 2024. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 2.1%. Lower than top quartile of Hong Kong dividend payers (7.4%). Lower than average of industry peers (4.9%). Reported Earnings • Apr 20
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: CN¥0.077 (down from CN¥0.22 in FY 2022). Revenue: CN¥9.02b (up 6.3% from FY 2022). Net income: CN¥421.3m (down 65% from FY 2022). Profit margin: 4.7% (down from 14% in FY 2022). Revenue exceeded analyst estimates by 3.3%. Earnings per share (EPS) missed analyst estimates by 61%. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the Basic Materials industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • Apr 17
West China Cement Limited Announces Directorate Changes The board of directors of West China Cement Limited announced that, with effect from 16 April 2024: Mr. Wang Fayin has tendered his resignation as an executive Director of the Company due to adjustment in work arrangements with effective from 16 April 2024. Ms. Wang Rui has been appointed as an executive Director with effect from 16 April 2024. The biographical details of Ms. Wang are set out below: Ms. Wang, aged 45, is the vice chair and Party secretary of the general branch of Yaobai Special Cement Group Co. Ltd. She has held the position since January 2023 and is primarily responsible for overseeing the market management, procurement, logistics, and other operations of the Yaobai Group. Ms. Wang obtained a master's degree in business administration from the University of Management and Technology in June 2018. She joined the Group in December 1998 and held several positions, including: (i) manager of general administration of Pucheng Yaobai Special Cement Co. Ltd. () from December 1998 to December 2006; (ii) assistant general manager of Xi'an Lantian Yaobai Cement Co. Ltd. from January 2007 to August 2008; (iii) assistant general manager of Xi'an Yaobai Material Co. Ltd. from January 2007 to August 2008; (iv) chief administration officer of Yaobai Group from July 2009 to June 2010; (v) deputy general manager of sales department of Yaobai Group from July 2010 to September 2010; (vi) general manager of Yaobai Material from October 2010 to January 2015; (vii) vice president of Yaobai Group from January 2018 to December 2019; and (viii) the chief executive officer of the Yaobai Group from January 2020 to December 2022. She has won several rewards, such as being recognized as a High- level Talent in Xi'an, Outstanding Communist Party Member of the Ministry of Industry and Information of Shaanxi Province, and Outstanding Entrepreneur of National Building Material Industry. Recent Insider Transactions • Apr 16
CEO & Executive Director recently sold HK$1.3m worth of stock On the 12th of April, Jianshun Cao sold around 1m shares on-market at roughly HK$1.09 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Jianshun's only on-market trade for the last 12 months. Recent Insider Transactions Derivative • Mar 23
Independent Non-Executive Director exercised options and sold HK$173k worth of stock On the 19th of March, King-Ching Tam exercised 750k options at a strike price of around HK$0.91 and sold these shares for an average price of HK$1.14 per share. This trade did not impact their existing holding. As of today, King-Ching currently holds no shares directly. This was the only transaction from an insider over the last 12 months. Announcement • Mar 21
West China Cement Limited Proposes Final Dividend for the Year Ended December 31, 2023, Payable on 31 July 2024 West China Cement Limited proposed final dividend of RMB 0.023 per share for the year ended December 31, 2023 at AGM to be held on 24 May 2024. Ex-dividend date: 29 May 2024. Record date 04 June 2024. Payment date 31 July 2024. Declared Dividend • Mar 20
Dividend reduced to HK$0.023 Dividend of HK$0.023 is 69% lower than last year. Ex-date: 29th May 2024 Payment date: 31st July 2024 Dividend yield will be 2.0%, which is lower than the industry average of 11%. Sustainability & Growth Dividend is covered by earnings (30% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 1.4% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 287% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 19
West China Cement Limited, Annual General Meeting, May 24, 2024 West China Cement Limited, Annual General Meeting, May 24, 2024. Reported Earnings • Mar 19
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: CN¥0.077 (down from CN¥0.22 in FY 2022). Revenue: CN¥9.02b (up 6.3% from FY 2022). Net income: CN¥421.3m (down 65% from FY 2022). Profit margin: 4.7% (down from 14% in FY 2022). Revenue exceeded analyst estimates by 3.3%. Earnings per share (EPS) missed analyst estimates by 61%. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 1.6% growth forecast for the Basic Materials industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • Mar 08
West China Cement Limited to Report Fiscal Year 2023 Results on Mar 18, 2024 West China Cement Limited announced that they will report fiscal year 2023 results on Mar 18, 2024 Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment improves as stock rises 36% After last week's 36% share price gain to HK$1.03, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 7x in the Basic Materials industry in Hong Kong. Total returns to shareholders of 8.9% over the past three years. Announcement • Jan 10
West China Cement Limited Announces Board Changes The board of directors of West China Cement Limited announced that, with effect from 10 January 2024: Mr. Fan Changhong (Mr. Fan) has resigned as a non-executive director due to adjustment of work arrangements. Mr. Wang Zhixin (Mr. Wang') has been appointed as a non-executive Director. Mr. Wang, aged 50, graduated with a bachelor's degree in inorganic non-metallic materials from Wuhan University of Technology in June 2014. Mr. Wang has extensive experience in cement production management and external communication. From June 2004 to July 2014, he held various key positions at Anhui Huaining Conch Cement Co. Ltd., including (i) assistant to the factory director of the manufacturing branch from June 2004 to January 2006; (ii) deputy factory director of the manufacturing branch from February 2006 to March 2008; (iii) factory director of the manufacturing branch from March 2008 to June 2009; (iv) assistant to general manager from June 2009 to February 2011; and (v) deputy general manager from February 2011 to July 2014. From July 2014 to August 2020, Mr. Wang held two positions in Baoji Zhongxi Jinlinghe Cement Co. Ltd., including (i) executive deputy general manager from July 2014 to December 2015; and (ii) general manager from December 2015 to August 2020. From August 2020 to April 2023, Mr. Wang served as deputy director of the Shaanxi-Gansu Regional Committee of Anhui Conch Cement Company Limited (the Conch Cement'), general manager of Pingliang Conch Cement Co. Ltd. and Secretary of the Party Committee and general manager of Hami Hongyi Building Materials Co. Ltd. Mr. Wang has been the executive president of Shaanxi-Gansu Region of Conch Cement since October 2021. Reported Earnings • Sep 23
First half 2023 earnings released: EPS: CN¥0.098 (vs CN¥0.12 in 1H 2022) First half 2023 results: EPS: CN¥0.098 (down from CN¥0.12 in 1H 2022). Revenue: CN¥4.40b (up 5.9% from 1H 2022). Net income: CN¥532.2m (down 19% from 1H 2022). Profit margin: 12% (down from 16% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 2.8% growth forecast for the Basic Materials industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Aug 28
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥9.45b to CN¥9.19b. EPS estimate also fell from CN¥0.263 per share to CN¥0.227 per share. Net income forecast to grow 35% next year vs 38% growth forecast for Basic Materials industry in Hong Kong. Consensus price target broadly unchanged at HK$1.24. Share price was steady at HK$0.77 over the past week. Reported Earnings • Aug 22
First half 2023 earnings released: EPS: CN¥0.098 (vs CN¥0.12 in 1H 2022) First half 2023 results: EPS: CN¥0.098 (down from CN¥0.12 in 1H 2022). Revenue: CN¥4.40b (up 5.9% from 1H 2022). Net income: CN¥532.2m (down 19% from 1H 2022). Profit margin: 12% (down from 16% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Basic Materials industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 17% per year whereas the company’s share price has fallen by 19% per year. Announcement • Aug 10
West China Cement Limited to Report First Half, 2023 Results on Aug 21, 2023 West China Cement Limited announced that they will report first half, 2023 results on Aug 21, 2023 Announcement • Jun 08
West China Cement Limited Announces Directorate Changes The board of directors of West China Cement Limited announced that, with effect from 7 June 2023 Mr. Wang Jingqian has resigned as a non-executive Director due to adjustment of work arrangements. Mr. Wang has confirmed that there is no disagreement with the Board or the Company and there are no matters which need to be brought to the attention of the shareholders of the Company (the ``Shareholders'') or The Stock Exchange of Hong Kong Limited (the ``Stock Exchange'') in relation to his resignation as a non- executive Director. Mr. Fan Zhan has been appointed as a non-executive Director with effect from 7 June 2023. The biographical details of Mr. Fan are set out below: Mr. Fan, aged 38, is a senior accountant. Mr. Fan Zhan graduated from Tongling University () in accounting in July 2006. Mr. Fan has extensive experience in finance and investment management. He is currently a deputy head of financial department in Anhui Conch Cement Company Limited () (the ``Conch Cement'') and an executive director of China Conch Environment Protection Holdings Limited (), whose shares are listed on the Main Board of the Stock Exchange (stock code: 0587). Prior to that, he served as an accountant and the financial head of Anhui Tongling Conch Cement Co. Ltd. () from July 2006 to March 2007 and from March 2007 to March 2008, respectively. From March 2008 to October 2017, Mr. Fan held various positions at Conch Cement, including (i) an accountant from March 2008 to December 2009; (ii) the head of the financial department from December 2009 to March 2011; and (iii) the assistant to department director from March 2011 to October 2017. Announcement • May 26
West China Cement Limited Approves Declare A Final Dividend for the Year Ended 31 December 2022 West China Cement Limited at its AGM held on May 25, 2023, declared a final dividend of RMB 0.067 per ordinary share for the year ended 31 December 2022 to the shareholders of the Company which shall be paid out of the distributable reserve of the Company. Upcoming Dividend • May 23
Upcoming dividend of CN¥0.067 per share at 7.5% yield Eligible shareholders must have bought the stock before 30 May 2023. Payment date: 31 July 2023. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 7.5%. Lower than top quartile of Hong Kong dividend payers (7.6%). In line with average of industry peers (7.1%). Major Estimate Revision • Apr 28
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥10.3b to CN¥9.84b. EPS estimate also fell from CN¥0.33 per share to CN¥0.285 per share. Net income forecast to grow 29% next year vs 28% growth forecast for Basic Materials industry in Hong Kong. Consensus price target up from HK$1.31 to HK$1.37. Share price fell 4.9% to HK$0.97 over the past week. Reported Earnings • Mar 29
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: CN¥0.22 (down from CN¥0.29 in FY 2021). Revenue: CN¥8.49b (up 6.1% from FY 2021). Net income: CN¥1.21b (down 23% from FY 2021). Profit margin: 14% (down from 20% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.2%. Earnings per share (EPS) also surpassed analyst estimates by 12%. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 3.2% growth forecast for the Basic Materials industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 13% per year whereas the company’s share price has fallen by 9% per year. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 2 experienced directors. 5 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Non-Executive Director Dong Zhu was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Aug 31
First half 2022 earnings released: EPS: CN¥0.12 (vs CN¥0.19 in 1H 2021) First half 2022 results: EPS: CN¥0.12 (down from CN¥0.19 in 1H 2021). Revenue: CN¥4.15b (down 1.9% from 1H 2021). Net income: CN¥658.2m (down 38% from 1H 2021). Profit margin: 16% (down from 25% in 1H 2021). The decrease in margin was primarily driven by higher expenses. Over the next year, revenue is forecast to grow 16% while the Basic Materials industry in Hong Kong is not expected to grow. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 10% per year, which means it is performing significantly worse than earnings. Upcoming Dividend • May 25
Upcoming dividend of CN¥0.087 per share Eligible shareholders must have bought the stock before 01 June 2022. Payment date: 29 July 2022. Payout ratio is a comfortable 30% but the company is not cash flow positive. Trailing yield: 9.1%. Within top quartile of Hong Kong dividend payers (7.8%). Higher than average of industry peers (8.0%). Reported Earnings • Apr 28
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.29 (up from CN¥0.29 in FY 2020). Revenue: CN¥8.00b (up 12% from FY 2020). Net income: CN¥1.59b (up 1.6% from FY 2020). Profit margin: 20% (down from 22% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) also missed analyst estimates by 16%. Over the next year, revenue is forecast to grow 16%, compared to a 1.5% growth forecast for the industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Dong Zhu was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Apr 09
Consensus EPS estimates increase by 16% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from CN¥8.96b to CN¥9.31b. EPS estimate increased from CN¥0.25 to CN¥0.29 per share. Net income forecast to shrink 0.2% next year vs 2.0% growth forecast for Basic Materials industry in Hong Kong . Consensus price target up from HK$1.37 to HK$1.54. Share price rose 4.0% to HK$1.31 over the past week. Reported Earnings • Mar 29
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.29 (up from CN¥0.29 in FY 2020). Revenue: CN¥8.00b (up 12% from FY 2020). Net income: CN¥1.59b (up 1.6% from FY 2020). Profit margin: 20% (down from 22% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) also missed analyst estimates by 16%. Over the next year, revenue is forecast to grow 4.6%, compared to a 4.3% growth forecast for the industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 5% per year. Valuation Update With 7 Day Price Move • Sep 06
Investor sentiment improved over the past week After last week's 19% share price gain to HK$1.45, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 4x in the Basic Materials industry in Hong Kong. Total returns to shareholders of 38% over the past three years.