Executive Summary
West China Cement Limited, an investment holding company, produces and sells cement and cement products in the People’s Republic of China. More Details
Rewards
Risk Analysis
No risks detected for 2233 from our risk checks.
Snowflake Analysis
Flawless balance sheet and undervalued.
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
Stable Share Price: 2233 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: 2233's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-5.6%
2233
-1.4%
HK Basic Materials
5.1%
HK Market
1 Year Return
-14.4%
2233
-7.6%
HK Basic Materials
17.5%
HK Market
Return vs Industry: 2233 underperformed the Hong Kong Basic Materials industry which returned -7.6% over the past year.
Return vs Market: 2233 underperformed the Hong Kong Market which returned 17.5% over the past year.
Shareholder returns
| 2233 | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.6% | -1.4% | 5.1% |
| 30 Day | 6.3% | 6.2% | 15.0% |
| 90 Day | 1.7% | 0.4% | 19.7% |
| 1 Year | -10.0%-14.4% | -3.6%-7.6% | 22.1%17.5% |
| 3 Year | -1.5%-13.1% | 23.2%10.1% | -1.4%-11.8% |
| 5 Year | -15.7%-25.6% | 207.5%165.9% | 73.0%43.6% |
Long-Term 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
Could The West China Cement Limited (HKG:2233) Ownership Structure Tell Us Something Useful?1 month ago | Simply Wall St
West China Cement (HKG:2233) Seems To Use Debt Quite Sensibly1 month ago | Simply Wall St
Is There An Opportunity With West China Cement Limited's (HKG:2233) 35% Undervaluation?Valuation
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
Below Fair Value: 2233 (HK$1.19) is trading below our estimate of fair value (HK$2.55)
Significantly Below Fair Value: 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 (3.1x) compared to the HK Basic Materials industry average (6.1x).
PE vs Market: 2233 is good value based on its PE Ratio (3.1x) compared to the Hong Kong market (12x).
Price to Earnings Growth Ratio
PEG Ratio: 2233 is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: 2233's PB Ratio (0.6x) is in line with the HK Basic Materials industry average.
Next Steps
Future Growth
How is West China Cement forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
4.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2233's forecast earnings growth (4.4% per year) is above the savings rate (1.5%).
Earnings vs Market: 2233's earnings (4.4% per year) are forecast to grow slower than the Hong Kong market (21.6% per year).
High Growth Earnings: 2233's earnings are forecast to grow, but not significantly.
Revenue vs Market: 2233's revenue (4.5% per year) is forecast to grow slower than the Hong Kong market (14.4% per year).
High Growth Revenue: 2233's revenue (4.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 2233's Return on Equity is forecast to be low in 3 years time (16%).
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Past Performance
How has West China Cement performed over the past 5 years?
59.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2233 has high quality earnings.
Growing Profit Margin: 2233's current net profit margins (25.3%) are higher than last year (19.8%).
Past Earnings Growth Analysis
Earnings Trend: 2233 has become profitable over the past 5 years, growing earnings by 59.7% per year.
Accelerating Growth: 2233's earnings growth over the past year (34.5%) is below its 5-year average (59.7% per year).
Earnings vs Industry: 2233 earnings growth over the past year (34.5%) exceeded the Basic Materials industry 1.4%.
Return on Equity
High ROE: 2233's Return on Equity (18.9%) is considered low.
Next Steps
Financial Health
How is West China Cement's financial position?
Financial Position Analysis
Short Term Liabilities: 2233's short term assets (CN¥5.1B) exceed its short term liabilities (CN¥4.4B).
Long Term Liabilities: 2233's short term assets (CN¥5.1B) exceed its long term liabilities (CN¥2.3B).
Debt to Equity History and Analysis
Debt Level: 2233's debt to equity ratio (40%) is considered satisfactory.
Reducing Debt: 2233's debt to equity ratio has reduced from 65.5% to 40% over the past 5 years.
Debt Coverage: 2233's debt is well covered by operating cash flow (48.4%).
Interest Coverage: 2233 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
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Dividend
What is West China Cement current dividend yield, its reliability and sustainability?
10.97%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate 2233's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate 2233's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 2233's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 2233's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: 2233 is not paying a notable dividend for the Hong Kong market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 2233's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
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Management
How experienced are the management team and are they aligned to shareholders interests?
5.9yrs
Average management tenure
CEO
Weiping Ma (58 yo)
5.92yrs
Tenure
CN¥3,812,000
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 ($USD589.94K) is above average for companies of similar size in the Hong Kong market ($USD403.02K).
Compensation vs Earnings: Weiping's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | 10.5yrs | CN¥3.85m | 32.29% CN¥ 2.2b | |
| CEO & Executive Director | 5.92yrs | CN¥3.81m | no data | |
| Chief Financial Officer | 1yr | no data | no data | |
| Financial Controller & Company Secretary | 8.58yrs | no data | no data |
5.9yrs
Average Tenure
50yo
Average Age
Experienced Management: 2233's management team is seasoned and experienced (5.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | 10.5yrs | CN¥3.85m | 32.29% CN¥ 2.2b | |
| CEO & Executive Director | 5.92yrs | CN¥3.81m | no data | |
| Independent Non-Executive Director | 10.5yrs | CN¥362.00k | no data | |
| Independent Non-Executive Director | 10.5yrs | CN¥362.00k | no data | |
| Non-Executive Director | 10.5yrs | CN¥362.00k | 4.07% CN¥ 274.8m | |
| Non-Executive Director | 5.5yrs | CN¥354.00k | no data | |
| Independent Non-Executive Director | 1.5yrs | CN¥162.00k | no data | |
| Non-Executive Director | 1.5yrs | CN¥162.00k | no data |
9.5yrs
Average Tenure
58yo
Average Age
Experienced Board: 2233's board of directors are considered experienced (9.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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: NaN
- Industry: Construction Materials
- Sector: Materials
- Market Cap: HK$6.744b
- 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, produces and sells cement and cement products in the People’s Republic of China. The company sells its products under the Yao Bai and Yaobaishuini ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/22 10:14 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.