SEHK:695

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Dongwu Cement International

Executive Summary

Dongwu Cement International Limited, an investment holding company, produces and sells cement under the Dongwu brand name in the People’s Republic of China. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

Share Price & News

How has Dongwu Cement International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 695 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 695's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

0%

695

-3.4%

HK Basic Materials

-1.0%

HK Market


1 Year Return

-18.2%

695

-1.7%

HK Basic Materials

9.0%

HK Market

Return vs Industry: 695 underperformed the Hong Kong Basic Materials industry which returned 1% over the past year.

Return vs Market: 695 underperformed the Hong Kong Market which returned 9.8% over the past year.


Shareholder returns

695IndustryMarket
7 Day0%-3.4%-1.0%
30 Day1.6%-1.4%5.9%
90 Day14.0%-13.0%7.5%
1 Year-13.2%-18.2%2.6%-1.7%13.4%9.0%
3 Year8.2%-3.0%43.0%27.9%2.4%-8.3%
5 Year4.3%-6.5%149.2%114.4%36.9%13.8%

Long-Term Price Volatility Vs. Market

How volatile is Dongwu Cement International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Dongwu Cement International undervalued compared to its fair value and its price relative to the market?

32.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 695 (HK$1.3) is trading below our estimate of fair value (HK$1.92)

Significantly Below Fair Value: 695 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 695 is poor value based on its PE Ratio (11x) compared to the HK Basic Materials industry average (6.3x).

PE vs Market: 695's PE Ratio (11x) is in line with the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 695's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 695 is overvalued based on its PB Ratio (1.1x) compared to the HK Basic Materials industry average (0.7x).


Next Steps

Future Growth

How is Dongwu Cement International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.8%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Dongwu Cement International has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Dongwu Cement International performed over the past 5 years?

57.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 695 has high quality earnings.

Growing Profit Margin: 695's current net profit margins (11.1%) are lower than last year (13.8%).


Past Earnings Growth Analysis

Earnings Trend: 695 has become profitable over the past 5 years, growing earnings by 57.7% per year.

Accelerating Growth: 695's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 695 had negative earnings growth (-27%) over the past year, making it difficult to compare to the Basic Materials industry average (1.4%).


Return on Equity

High ROE: 695's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is Dongwu Cement International's financial position?


Financial Position Analysis

Short Term Liabilities: 695's short term assets (CN¥556.6M) exceed its short term liabilities (CN¥209.4M).

Long Term Liabilities: 695's short term assets (CN¥556.6M) exceed its long term liabilities (CN¥27.4M).


Debt to Equity History and Analysis

Debt Level: 695's debt to equity ratio (10.6%) is considered satisfactory.

Reducing Debt: 695's debt to equity ratio has reduced from 15.2% to 10.6% over the past 5 years.

Debt Coverage: 695's debt is well covered by operating cash flow (174.9%).

Interest Coverage: 695 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Dongwu Cement International current dividend yield, its reliability and sustainability?

11.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 695's dividend (11.15%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.2%).

High Dividend: 695's dividend (11.15%) is in the top 25% of dividend payers in the Hong Kong market (6.66%)


Stability and Growth of Payments

Stable Dividend: 695 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 695's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.3%), 695's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.4yrs

Average management tenure


CEO

Junxian Wu (39 yo)

0.42

Tenure

Mr. Junxian Wu serves as an Executive Director of Dongwu Cement International Limited since May 28, 2020 and also serves as its Chief Executive Officer since July 3, 2020. He serves as a Deputy General Man...


Leadership Team

NamePositionTenureCompensationOwnership
Dong Liu
Executive Chairman0.42yrCN¥123.00kno data
Junxian Wu
CEO & Executive Director0.42yrno datano data
Xin Sun
Chief Financial Controller & Company Secretary7.33yrsno datano data

0.4yrs

Average Tenure

39yo

Average Age

Experienced Management: 695's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Dong Liu
Executive Chairman0.42yrCN¥123.00kno data
Junxian Wu
CEO & Executive Director0.42yrno datano data
Kuangyu Cao
Independent Non-Executive Director8.58yrsCN¥158.00kno data
Hok Ming Tseung
Non-Executive Director9.08yrsCN¥210.00k53.89%
CN¥ 383.8m
Suo Suo
Independent Non-Executive Director0.17yrno datano data
Yingxia Xie
Non-Executive Director9.08yrsCN¥210.00kno data
Xiaoying Yu
Independent Non Executive Director0.83yrno datano data
Xuanlin Chen
Non-Executive Director0.17yrno data4.65%
CN¥ 33.1m

0.7yrs

Average Tenure

45.5yo

Average Age

Experienced Board: 695's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 695 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

Dongwu Cement International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dongwu Cement International Limited
  • Ticker: 695
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: HK$712.080m
  • Shares outstanding: 552.00m
  • Website: https://www.dongwucement.com

Number of Employees


Location

  • Dongwu Cement International Limited
  • Far East Finance Centre
  • 43rd Floor, Unit 08
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
695SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2012

Biography

Dongwu Cement International Limited, an investment holding company, produces and sells cement under the Dongwu brand name in the People’s Republic of China. The company offers ordinary and composite Portla...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/04 10:22
End of Day Share Price2020/12/04 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.