Executive Summary
West China Cement Limited, an investment holding company, produces and sells cement and cement products in the People’s Republic of China.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -0.8% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet, undervalued and pays a dividend.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-3.8%
2233
0.3%
HK Basic Materials
2.7%
HK Market
1 Year Return
42.9%
2233
24.0%
HK Basic Materials
-6.5%
HK Market
Return vs Industry: 2233 exceeded the Hong Kong Basic Materials industry which returned 24.9% over the past year.
Return vs Market: 2233 exceeded the Hong Kong Market which returned -7.8% over the past year.
Shareholder returns
| 2233 | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.8% | 0.3% | 2.7% |
| 30 Day | 8.7% | -7.6% | -0.7% |
| 90 Day | 11.9% | -6.4% | -5.3% |
| 1 Year | 47.2%42.9% | 28.7%24.0% | -3.3%-6.5% |
| 3 Year | 43.2%32.7% | 97.9%77.4% | -1.6%-11.7% |
| 5 Year | 32.6%23.0% | 53.4%34.4% | -11.4%-25.3% |
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
2 days ago | Simply Wall St
Our Take On West China Cement Limited's (HKG:2233) CEO Salary2 weeks ago | Simply Wall St
What Is West China Cement's (HKG:2233) P/E Ratio After Its Share Price Rocketed?3 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
Below Fair Value: 2233 (HK$1.5) is trading below our estimate of fair value (HK$4.52)
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 (4.2x) compared to the Basic Materials industry average (7.8x).
PE vs Market: 2233 is good value based on its PE Ratio (4.2x) compared to the Hong Kong market (9.3x).
Price to Earnings Growth Ratio
PEG Ratio: 2233's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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 (0.8x).
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?
-0.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2233's earnings are forecast to decline over the next 3 years (-0.8% per year).
Earnings vs Market: 2233's earnings are forecast to decline over the next 3 years (-0.8% per year).
High Growth Earnings: 2233's earnings are forecast to decline over the next 3 years.
Revenue vs Market: 2233's revenue (0.2% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).
High Growth Revenue: 2233's revenue (0.2% 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 (15.4%).
Next Steps
Past Performance
How has West China Cement performed over the past 5 years?
64.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2233 has high quality earnings.
Growing Profit Margin: 2233's current net profit margins (24.9%) are higher than last year (19.6%).
Past Earnings Growth Analysis
Earnings Trend: 2233's earnings have grown significantly by 64.5% per year over the past 5 years.
Accelerating Growth: 2233's earnings growth over the past year (55.4%) is below its 5-year average (64.5% per year).
Earnings vs Industry: 2233 earnings growth over the past year (55.4%) exceeded the Basic Materials industry 6.4%.
Return on Equity
High ROE: 2233's Return on Equity (20%) is considered high.
Next Steps
Financial Health
How is West China Cement's financial position?
Financial Position Analysis
Short Term Liabilities: 2233's short term assets (CN¥3.9B) exceed its short term liabilities (CN¥3.2B).
Long Term Liabilities: 2233's short term assets (CN¥3.9B) exceed its long term liabilities (CN¥2.1B).
Debt to Equity History and Analysis
Debt Level: 2233's debt to equity ratio (30.7%) is considered satisfactory.
Reducing Debt: 2233's debt to equity ratio has reduced from 80.2% to 30.7% over the past 5 years.
Debt Coverage: 2233's debt is well covered by operating cash flow (92.1%).
Interest Coverage: 2233 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is West China Cement's current dividend yield, its reliability and sustainability?
9.14%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 2233's dividend (9.14%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.55%).
High Dividend: 2233's dividend (9.14%) is in the top 25% of dividend payers in the Hong Kong market (7.26%)
Stability and Growth of Payments
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 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (29.9%), 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 (34.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Weiping Ma (57yo)
5.33yrs
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 ($USD534.87K) is about average for companies of similar size in the Hong Kong market ($USD506.89K).
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 | 9.92yrs | CN¥3.85m | 32.31% CN¥2.6b | |
| CEO & Executive Director | 5.33yrs | CN¥3.81m | no data | |
| Chief Financial Officer | 0.42yr | no data | no data | |
| Financial Controller & Company Secretary | 8yrs | no data | no data |
5.3yrs
Average Tenure
49yo
Average Age
Experienced Management: 2233's management team is seasoned and experienced (5.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | 9.92yrs | CN¥3.85m | 32.31% CN¥2.6b | |
| CEO & Executive Director | 5.33yrs | CN¥3.81m | no data | |
| Independent Non-Executive Director | 9.92yrs | CN¥362.00k | no data | |
| Independent Non-Executive Director | 9.92yrs | CN¥362.00k | no data | |
| Non-Executive Director | 9.92yrs | CN¥362.00k | 4.08% CN¥332.4m | |
| Non-Executive Director | 4.92yrs | CN¥354.00k | no data | |
| Independent Non-Executive Director | 0.92yr | CN¥162.00k | no data | |
| Non-Executive Director | 0.92yr | CN¥162.00k | no data |
9.0yrs
Average Tenure
57yo
Average Age
Experienced Board: 2233's board of directors are considered experienced (9 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:
- Industry: Construction Materials
- Sector: Materials
- Market Cap: HK$8.155b
- 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 names. Its cement products are used in the construction of infrastructure projects, such as highways, railways, bridges, hydroelectric power stations, and water conservancy and water transfer projects, as well as residential buildings. The company also engages in financial leasing and transportation business. West China Cement Limited is headquartered in Xi'an, the People’s Republic of China.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/02 13:16 |
| End of Day Share Price | 2020/06/02 00:00 |
| Earnings | 2019/12/31 |
| 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.