SEHK:743

Stock Analysis Report

Asia Cement (China) Holdings

Executive Summary

Asia Cement (China) Holdings Corporation, an investment holding company, manufactures and sells cement, concrete, and related products in the People’s Republic of China.


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Asia Cement (China) Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 743's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.5%

743

0.8%

HK Basic Materials

0.2%

HK Market


1 Year Return

-11.4%

743

3.8%

HK Basic Materials

-22.0%

HK Market

Return vs Industry: 743 underperformed the Hong Kong Basic Materials industry which returned 3.5% over the past year.

Return vs Market: 743 exceeded the Hong Kong Market which returned -21.6% over the past year.


Shareholder returns

743IndustryMarket
7 Day-5.5%0.8%0.2%
30 Day-28.5%-10.2%-10.8%
90 Day-35.3%-10.5%-16.5%
1 Year-4.3%-11.4%8.2%3.8%-19.1%-22.0%
3 Year244.5%200.8%66.1%52.6%-3.7%-13.4%
5 Year101.3%61.7%39.2%24.0%-15.2%-28.8%

Price Volatility Vs. Market

How volatile is Asia Cement (China) Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Asia Cement (China) Holdings 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: 743 (HK$7.52) is trading below our estimate of fair value (HK$43.99)

Significantly Below Fair Value: 743 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 743 is good value based on its PE Ratio (3.4x) compared to the Basic Materials industry average (5.9x).

PE vs Market: 743 is good value based on its PE Ratio (3.4x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 743's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 743 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 Asia Cement (China) Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-3.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 743's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if 743's earnings are forecast to grow faster than the Hong Kong market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 743's revenue is expected to decline over the next 3 years (-3.3% per year).

High Growth Revenue: 743's revenue is forecast to decline over the next 3 years (-3.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 743's Return on Equity is forecast to be low in 3 years time (14.2%).


Next Steps

Past Performance

How has Asia Cement (China) Holdings performed over the past 5 years?

58.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 743 has high quality earnings.

Growing Profit Margin: 743's current net profit margins (25%) are higher than last year (21.4%).


Past Earnings Growth Analysis

Earnings Trend: 743's earnings have grown significantly by 58.3% per year over the past 5 years.

Accelerating Growth: 743's earnings growth over the past year (30%) is below its 5-year average (58.3% per year).

Earnings vs Industry: 743 earnings growth over the past year (30%) exceeded the Basic Materials industry 13.3%.


Return on Equity

High ROE: 743's Return on Equity (22.1%) is considered high.


Next Steps

Financial Health

How is Asia Cement (China) Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 743's short term assets (CN¥12.6B) exceed its short term liabilities (CN¥7.7B).

Long Term Liabilities: 743's short term assets (CN¥12.6B) exceed its long term liabilities (CN¥1.6B).


Debt to Equity History and Analysis

Debt Level: 743's debt to equity ratio (42.4%) is considered high.

Reducing Debt: 743's debt to equity ratio has reduced from 85.3% to 42.4% over the past 5 years.

Debt Coverage: 743's debt is well covered by operating cash flow (75.8%).

Interest Coverage: 743's interest payments on its debt are well covered by EBIT (42x coverage).


Balance Sheet

Inventory Level: 743 has a high level of physical assets or inventory.

Debt Coverage by Assets: 743's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

What is Asia Cement (China) Holdings's current dividend yield, its reliability and sustainability?

7.27%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 743's dividend (7.27%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.57%).

High Dividend: 743's dividend (7.27%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.33%).


Stability and Growth of Payments

Stable Dividend: 743's dividend payments have been volatile in the past 10 years.

Growing Dividend: 743's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.9%), 743's dividend payments are well 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?

12.0yrs

Average board tenure


CEO

Chung-Lih Wu (69yo)

8.58s

Tenure

CN¥1,789,000

Compensation

Dr. Chung-Lih Wu has been the Chief Executive Officer of Asia Cement (China) Holdings Corp. since September 1, 2011 and served as its Chief Administrative Officer and Compliance Officer. Dr. Wu has extensi ...


CEO Compensation Analysis

Compensation vs Market: Chung-Lih's total compensation ($USD252.46K) is below average for companies of similar size in the Hong Kong market ($USD512.84K).

Compensation vs Earnings: Chung-Lih's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Chung-Lih Wu
CEO & Executive Director8.58yrsCN¥1.79m0.016% CN¥2.0m
Shu-Ping Hsu
Executive Vice Chairmanno dataCN¥209.00k0.013% CN¥1.5m
Chen-Kuen Chang
Deputy CEO12yrsCN¥1.37m0.030% CN¥3.6m
Seng-Chang Lin
Deputy CEO12yrsCN¥1.28m0.019% CN¥2.2m
Ling-Ling Wu
Executive Director4yrsCN¥333.00k0.0013% CN¥154.0k
Tsai-Hsiung Chang
Senior Advisor & Executive Director12yrsCN¥203.00k0.027% CN¥3.3m
Tak-Lung Tsim
Independent Non-Executive Director12yrsCN¥254.00kno data
Shu-Tong Hsu
Non-Executive Chairmanno dataCN¥389.00k0.19% CN¥23.0m
Wei Wang
Independent Non-Executive Director5yrsCN¥254.00kno data
Kuo-Ming Wang
Independent Non-Executive Director4.5yrsCN¥254.00kno data

12.0yrs

Average Tenure

73yo

Average Age

Experienced Board: 743's board of directors are seasoned and experienced ( 12 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

Asia Cement (China) Holdings Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Asia Cement (China) Holdings Corporation
  • Ticker: 743
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: HK$12.033b
  • Shares outstanding: 1.57b
  • Website: https://www.achc.com.cn

Number of Employees


Location

  • Asia Cement (China) Holdings Corporation
  • No.6, Yadong Road
  • Ma-Tou Town
  • Ruichang
  • Jiangxi Province
  • 332207
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
743SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2008
4OJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2008
743SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 2008

Biography

Asia Cement (China) Holdings Corporation, an investment holding company, manufactures and sells cement, concrete, and related products in the People’s Republic of China. The company offers Portland cement clinker, general purpose Portland cement, moderate and low heat Portland cement, slag powder, limestone powder, ash powder, ready-mix concrete, etc. It also provides transportation services. The company was incorporated in 2004 and is headquartered in Ruichang, the People’s Republic of China. Asia Cement (China) Holdings Corporation is a subsidiary of Asia Cement Corporation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 13:08
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.