Asia Cement (China) Holdings (SEHK:743) - Share price, News & Analysis

743 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	5/6

743 Stock Overview

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

Rewards

Trading at 70.5% below our estimate of its fair value

Risk Analysis

Unstable dividend track record

Profit margins (12.3%) are lower than last year (24.7%)

Asia Cement (China) Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Asia Cement (China) Holdings
Historical stock prices
Current Share Price	HK$4.65
52 Week High	HK$7.46
52 Week Low	HK$4.39
Beta	0.93
1 Month Change	-1.90%
3 Month Change	-8.47%
1 Year Change	-24.02%
3 Year Change	-62.92%
5 Year Change	101.30%
Change since IPO	-31.92%

Shareholder Returns

	743	HK Basic Materials	HK Market
7D	-0.2%	1.7%	2.1%
1Y	-24.0%	-21.1%	-23.3%

Return vs Industry: 743 underperformed the Hong Kong Basic Materials industry which returned -21.1% over the past year.

Return vs Market: 743 matched the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 743's price volatile compared to industry and market?
743 volatility
743 Average Weekly Movement	4.0%
Basic Materials Industry Average Movement	5.7%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 743 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 743's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2004	3,774	Chen-Kuen Chang	https://www.achc.com.cn

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 based in Ruichang, the People’s Republic of China.

Asia Cement (China) Holdings Fundamentals Summary

How do Asia Cement (China) Holdings's earnings and revenue compare to its market cap?
743 fundamental statistics
Market Cap	CN¥6.21b
Earnings (TTM)	CN¥1.42b
Revenue (TTM)	CN¥11.55b

4.4x

P/E Ratio

0.5x

P/S Ratio

Is 743 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
743 income statement (TTM)
Revenue	CN¥11.55b
Cost of Revenue	CN¥8.33b
Gross Profit	CN¥3.22b
Other Expenses	CN¥1.80b
Earnings	CN¥1.42b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.91
Gross Margin	27.89%
Net Profit Margin	12.34%
Debt/Equity Ratio	7.6%

How did 743 perform over the long term?

See historical performance and comparison

Dividends

11.4%

Current Dividend Yield

49%

Payout Ratio

Does 743 pay a reliable dividends?

See 743 dividend history and benchmarks

When do you need to buy 743 by to receive an upcoming dividend?
Asia Cement (China) Holdings dividend dates
Ex Dividend Date	Jun 30 2022
Dividend Pay Date	Jul 22 2022
Days until Ex dividend	4 days
Days until Dividend pay date	26 days

Does 743 pay a reliable dividends?

See 743 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is 743 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 743?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 743. This is calculated by dividing 743's market cap by their current preferred multiple.
What is 743's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥6.21b

743 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.05x
Enterprise Value/EBITDA	0.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 743's PE Ratio compare to its peers?

743 PE Ratio vs Peers

The above table shows the PE ratio for 743 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	17.1x

Forward PE

Price-To-Earnings vs Peers: 743 is good value based on its Price-To-Earnings Ratio (4.4x) compared to the peer average (17.1x).

Price to Earnings Ratio vs Industry

How does 743's PE Ratio compare vs other companies in the Basic Materials Industry?

Price-To-Earnings vs Industry: 743 is good value based on its Price-To-Earnings Ratio (4.4x) compared to the Hong Kong Basic Materials industry average (4.9x)

Price to Earnings Ratio vs Fair Ratio

What is 743's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

743 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 743's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 743 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 743 (HK$4.65) is trading below our estimate of fair value (HK$15.78)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Asia Cement (China) Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-2.3%

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 (1.5%).

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 743's 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 (-2.3% per year).

High Growth Revenue: 743's revenue is forecast to decline over the next 3 years (-2.3% 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 (9.4%).

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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

20.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 743 has high quality earnings.

Growing Profit Margin: 743's current net profit margins (12.3%) are lower than last year (24.7%).

Past Earnings Growth Analysis

Earnings Trend: 743's earnings have grown significantly by 20.5% per year over the past 5 years.

Accelerating Growth: 743's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 743 had negative earnings growth (-51.3%) over the past year, making it difficult to compare to the Basic Materials industry average (-21.1%).

Return on Equity

High ROE: 743's Return on Equity (8.3%) is considered low.

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Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 743's short term assets (CN¥10.3B) exceed its short term liabilities (CN¥2.2B).

Long Term Liabilities: 743's short term assets (CN¥10.3B) exceed its long term liabilities (CN¥666.4M).

Debt to Equity History and Analysis

Debt Level: 743 has more cash than its total debt.

Reducing Debt: 743's debt to equity ratio has reduced from 55.5% to 7.6% over the past 5 years.

Debt Coverage: 743's debt is well covered by operating cash flow (163.3%).

Interest Coverage: 743 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

11.36%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: 743's dividend (11.36%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 743's dividend (11.36%) is in the top 25% of dividend payers in the Hong Kong market (7.89%)

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (49.5%), 743's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (37%), 743's dividend payments are well covered by cash flows.

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Management

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

1.0yrs

Average management tenure

CEO

Chen-Kuen Chang (74 yo)

0.083

Tenure

CN¥1,516,000

Compensation

Mr. Chen-Kuen Chang serves as the Chief Technical Officer and served as Deputy Chief Executive Officer of Asia Cement (China) Holdings Corporation until May 10, 2022 and serves as its Chief Executive Offic...

CEO Compensation Analysis

Compensation vs Market: Chen-Kuen's total compensation ($USD226.63K) is below average for companies of similar size in the Hong Kong market ($USD552.12K).

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

Leadership Team

Experienced Management: 743's management team is not considered experienced ( 1 years average tenure), which suggests a new team.

Board Members

Experienced Board: 743's board of directors are seasoned and experienced ( 11.2 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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31