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 20% over the past year. 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. Aankondiging • 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. Board Change • May 20
Less than half of directors are independent Following the recent departure of a director, there are only 5 independent directors on the board. The company's board is composed of: 5 independent directors. 7 non-independent directors. Independent Non-Executive Director Ka Keung Lau was the last independent director to join the board, commencing their role in 2025. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Aankondiging • Mar 24
West China Cement Limited, Annual General Meeting, May 29, 2026 West China Cement Limited, Annual General Meeting, May 29, 2026. Aankondiging • 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 Aankondiging • 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 Aankondiging • 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. Aankondiging • Mar 25
West China Cement Limited, Annual General Meeting, May 23, 2025 West China Cement Limited, Annual General Meeting, May 23, 2025. Aankondiging • 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 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 29% over the past three years. 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. Aankondiging • 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 Aankondiging • 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 released: EPS: CN¥0.077 (vs CN¥0.22 in FY 2022) 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 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. Aankondiging • 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. Aankondiging • 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. Aankondiging • 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 released: EPS: CN¥0.077 (vs CN¥0.22 in FY 2022) 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 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 7% per year, which means it has not declined as severely as earnings. Aankondiging • 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 loss to shareholders of 8.4% over the past three years. Aankondiging • 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. Board Change • Sep 15
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Non-Executive Director Tao Feng was the last independent director to join the board, commencing their role in 2023. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. 
