Executive Summary
West China Cement Limited, an investment holding company, manufactures and sells cement and cement products in the People’s Republic of China.
Snowflake
Fundamentals
Undervalued with excellent balance sheet.
Similar Companies
Share Price & News
How has West China Cement's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
4.8%
2233
2.3%
HK Basic Materials
3.1%
HK Market
1 Year Return
4.8%
2233
6.7%
HK Basic Materials
0.5%
HK Market
Return vs Industry: 2233 underperformed the Hong Kong Basic Materials industry which returned 6.7% over the past year.
Return vs Market: 2233 exceeded the Hong Kong Market which returned 0.5% over the past year.
Shareholder returns
| 2233 | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.8% | 2.3% | 3.1% |
| 30 Day | 0.8% | -2.5% | -1.8% |
| 90 Day | -4.3% | -2.2% | -4.8% |
| 1 Year | 9.6%4.8% | 11.4%6.7% | 4.1%0.5% |
| 3 Year | 82.5%69.2% | 113.7%96.4% | 15.8%4.2% |
| 5 Year | 87.7%73.7% | 68.0%48.3% | 18.9%-0.9% |
Price Volatility Vs. Market
How volatile is West China Cement's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
Do You Know What West China Cement Limited's (HKG:2233) P/E Ratio Means?1 week ago | Simply Wall St
What Makes West China Cement Limited (HKG:2233) A Great Dividend Stock?2 weeks ago | Simply Wall St
If You Like EPS Growth Then Check Out West China Cement (HKG:2233) Before It's Too LateValuation
Is West China Cement undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: 2233 (HK$1.32) is trading below our estimate of fair value (HK$4.37)
Significantly Undervalued: 2233 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 2233 is good value based on its PE Ratio (5x) compared to the Basic Materials industry average (5.5x).
PE vs Market: 2233 is good value based on its PE Ratio (5x) compared to the Hong Kong market (10.3x).
Price to Earnings Growth Ratio
Low PEG Ratio: 2233 is poor value based on its PEG Ratio (4.2x)
Price to Book Ratio
PB vs Industry: 2233 is good value based on its PB Ratio (0.8x) compared to the HK Basic Materials industry average (1x).
Next Steps
Future Growth
How is West China Cement forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
1.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2233's forecast earnings growth (1.2% per year) is below the savings rate (2%).
Earnings vs Market: 2233's earnings (1.2% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).
High Growth Earnings: 2233's earnings are forecast to grow, but not significantly.
Revenue vs Market: 2233's revenue (0.3% per year) is forecast to grow slower than the Hong Kong market (10% per year).
High Growth Revenue: 2233's revenue (0.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: 2233's Return on Equity is forecast to be low in 3 years time (15.9%).
Next Steps
Past Performance
How has West China Cement performed over the past 5 years?
57.5%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: 2233's earnings have grown significantly by 57.5% per year over the past 5 years.
Accelerating Growth: 2233's earnings growth over the past year (14.6%) is below its 5-year average (57.5% per year).
Earnings vs Industry: 2233 earnings growth over the past year (14.6%) underperformed the Basic Materials industry 45.5%.
Return on Equity
High ROE: 2233's Return on Equity (15.9%) is considered low.
Return on Assets
ROA vs Industry: 2233 has a higher Return on Assets than the Basic Materials industry average last year.
Return on Capital Employed
ROCE Improving: 2233 has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is West China Cement's financial position?
Financial Position Analysis
Short Term Liabilities: 2233's short term assets (CN¥3.7B) do not cover its short term liabilities (CN¥4.3B)
Long Term Liabilities: 2233's short term assets (3.7B) exceeds its long term liabilities (827.9M)
Debt to Equity History and Analysis
Debt Level: 2233's debt to equity ratio (33.3%) is considered satisfactory
Reducing Debt: 2233's debt to equity ratio has reduced from 79% to 33.3% over the past 5 years.
Debt Coverage: 2233's debt is well covered by operating cash flow (107.1%).
Interest Coverage: 2233's interest payments on its debt are well covered by EBIT (28.6x coverage).
Balance Sheet
Inventory Level: 2233 has a high level of physical assets or inventory.
Debt Coverage by Assets: 2233's debt is covered by short term assets (assets are 1.316600x debt).
Next Steps
Dividend
What is West China Cement's current dividend yield, its reliability and sustainability?
3.02%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: 2233's dividend (3.02%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).
High Dividend: 2233's dividend (3.02%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).
Stable Dividend: 2233 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 2233's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (20.8%), 2233's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 2233's dividends in 3 years are forecast to be well covered by earnings (23.4% payout ratio).
Next Steps
Management
What is the CEO of West China Cement's salary, the management and board of directors tenure and is there insider trading?
8.3yrs
Average board tenure
CEO
Weiping Ma (57yo)
4.7yrs
Tenure
CN¥3,778,000
Compensation
Dr. Ma Weiping has been the Chief Executive Officer of West China Cement Limited since February 5, 2015. Dr. Ma served as Managing Director of Shaanxi Fuping Cement Co., Ltd. Dr. Ma has over 20 years of ma ...
CEO Compensation Analysis
Compensation vs. Market: Weiping's total compensation ($USD532.62K) is about average for companies of similar size in the Hong Kong market ($USD418.12K).
Compensation vs Earnings: Weiping's compensation has increased by more than 20% in the past year.
Board Age and Tenure
8.3yrs
Average Tenure
57.5yo
Average Age
Experienced Board: 2233's board of directors are considered experienced (8.3 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 8,603,119 |
| Max Price | CN¥1.40 |
| Entity | Company |
| Shares | 3,954,000 |
| Max Price | CN¥1.03 |
| Entity | Company |
| Shares | 2,404,000 |
| Max Price | CN¥1.12 |
| Entity | Company |
| Shares | 571,970 |
| Max Price | CN¥1.00 |
| Entity | Company |
| Shares | 2,498,000 |
| Max Price | CN¥0.99 |
Ownership Breakdown
Management Team
Jimin Zhang (64yo)
Founder & Chairman
- Tenure: 9.3yrs
- Compensation: CN¥2.69m
King Sau Chan (41yo)
CFO & Company Secretary
- Tenure: 8.4yrs
Weiping Ma (57yo)
CEO & Executive Director
- Tenure: 4.7yrs
- Compensation: CN¥3.78m
Board Members
Conway Lee (65yo)
Independent Non-Executive Director
- Tenure: 9.3yrs
- Compensation: CN¥381.00k
Kenny Tam (70yo)
Independent Non-Executive Director
- Tenure: 9.3yrs
- Compensation: CN¥381.00k
Jimin Zhang (64yo)
Founder & Chairman
- Tenure: 9.3yrs
- Compensation: CN¥2.69m
Zhaoyang Ma (50yo)
Non-Executive Director
- Tenure: 9.3yrs
- Compensation: CN¥381.00k
Weiping Ma (57yo)
CEO & Executive Director
- Tenure: 4.7yrs
- Compensation: CN¥3.78m
Yan Liu (53yo)
Non-Executive Director
- Tenure: 4.3yrs
- Compensation: CN¥342.00k
Dong Zhu (58yo)
Independent Non-Executive Director
- Tenure: 0.3yrs
Chanhong Fan (54yo)
Non-Executive Director
- Tenure: 0.3yrs
Company Information
West China Cement Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: West China Cement Limited
- Ticker: 2233
- Exchange: SEHK
- Founded: 1991
- Industry: Construction Materials
- Sector: Materials
- Market Cap: HK$7.174b
- Shares outstanding: 5.44b
- Website: https://www.westchinacement.com
Number of Employees
Location
- West China Cement Limited
- Yaobai R&D Training Center
- No. 336 4th Shenzhou Road
- Xi'an
- Shaanxi Province
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WCHN.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Dec 2006 |
| 2233 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Dec 2006 |
| WFG1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 2006 |
| 2233 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Dec 2006 |
| 2233 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Dec 2006 |
Biography
West China Cement Limited, an investment holding company, manufactures and sells cement and cement products in the People’s Republic of China. The company sells its products under the Yao Bai and Yaobaishu ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/17 12:59 |
| End of Day Share Price | 2019/10/17 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.