West China Cement Limited

SHSC:2233 Stock Report

Market Cap: HK$8.3b

West China Cement Valuation

Is 2233 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2233 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2233 (HK$1.52) is trading below our estimate of fair value (HK$36.94)

Significantly Below Fair Value: 2233 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2233?

Key metric: As 2233 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2233. This is calculated by dividing 2233's market cap by their current earnings.
What is 2233's PE Ratio?
PE Ratio27.9x
EarningsCN¥276.00m
Market CapCN¥7.71b

Price to Earnings Ratio vs Peers

How does 2233's PE Ratio compare to its peers?

The above table shows the PE ratio for 2233 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.1x
1313 China Resources Building Materials Technology Holdings
36.6x35.9%HK$12.6b
3323 China National Building Material
30.7x64.8%HK$27.8b
2450 Huaibei GreenGold Industry Investment
31xn/aHK$454.1m
914 Anhui Conch Cement
13.9x9.8%HK$136.4b
2233 West China Cement
27.9x59.0%HK$8.3b

Price-To-Earnings vs Peers: 2233 is good value based on its Price-To-Earnings Ratio (27.9x) compared to the peer average (28.6x).

Price to Earnings Ratio vs Industry

How does 2233's PE Ratio compare vs other companies in the Asian Basic Materials Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
2233 27.9xIndustry Avg. 17.5xNo. of Companies42PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2233 is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the Asian Basic Materials industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is 2233'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.

2233 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.9x
Fair PE Ratio22.9x

Price-To-Earnings vs Fair Ratio: 2233 is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the estimated Fair Price-To-Earnings Ratio (22.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 2233 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$1.49
HK$1.29
-13.7%
18.8%HK$1.49HK$0.87n/a4
Nov ’25HK$1.25
HK$1.32
+5.5%
18.7%HK$1.54HK$0.90n/a4
Oct ’25HK$1.15
HK$1.32
+14.7%
18.7%HK$1.54HK$0.90n/a4
Sep ’25HK$0.88
HK$1.36
+54.1%
11.4%HK$1.52HK$1.10n/a4
Aug ’25HK$1.01
HK$1.49
+47.6%
17.6%HK$1.83HK$1.09n/a4
Jul ’25HK$1.03
HK$1.41
+36.9%
20.2%HK$1.83HK$1.09n/a5
Jun ’25HK$1.06
HK$1.41
+33.3%
20.2%HK$1.84HK$1.09n/a5
May ’25HK$1.20
HK$1.38
+15.2%
22.5%HK$1.84HK$1.09n/a4
Apr ’25HK$1.03
HK$1.12
+8.3%
27.6%HK$1.50HK$0.65n/a4
Mar ’25HK$0.96
HK$1.02
+5.9%
21.6%HK$1.22HK$0.65n/a4
Feb ’25HK$0.63
HK$1.02
+61.4%
21.6%HK$1.22HK$0.65n/a4
Jan ’25HK$0.68
HK$1.06
+56.0%
24.3%HK$1.36HK$0.65n/a4
Dec ’24HK$0.69
HK$1.05
+52.8%
21.6%HK$1.33HK$0.70n/a4
Nov ’24HK$0.70
HK$1.15
+64.5%
25.8%HK$1.48HK$0.70HK$1.254
Oct ’24HK$0.73
HK$1.15
+57.7%
25.8%HK$1.48HK$0.70HK$1.154
Sep ’24n/a
HK$1.23
0%
16.1%HK$1.49HK$0.99HK$0.884
Aug ’24n/a
HK$1.25
0%
12.5%HK$1.40HK$1.00HK$1.014
Jul ’24n/a
HK$1.23
0%
11.5%HK$1.36HK$1.00HK$1.034
Jun ’24n/a
HK$1.43
0%
18.6%HK$1.88HK$1.19HK$1.064
May ’24n/a
HK$1.37
0%
24.0%HK$1.89HK$1.00HK$1.204
Apr ’24n/a
HK$1.08
0%
17.1%HK$1.40HK$0.95HK$1.034
Mar ’24n/a
HK$1.08
0%
18.7%HK$1.43HK$0.95HK$0.964
Feb ’24n/a
HK$1.08
0%
18.7%HK$1.43HK$0.95HK$0.634
Jan ’24n/a
HK$1.21
0%
24.1%HK$1.57HK$0.88HK$0.684
Dec ’23n/a
HK$1.18
0%
22.4%HK$1.52HK$0.85HK$0.694
Nov ’23n/a
HK$1.27
0%
17.0%HK$1.57HK$1.04HK$0.704

Analyst Forecast: Target price is lower than the current share price.

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