West China Cement (2233) AI Stock Analysis

• Market Cap: $8.19B
• Dividend Yield: 1.67%
• Average Volume (3M): 20.89M
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.82
• Revenue Growth: -9.23%
• EPS Growth: 40.52%
• Country: HK
• Employees: 9,504
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Construction Materials
• EPS (TTM): 0.12
• Shares Outstanding: 5,462,532,700
• 10 Day Avg. Volume: 13,433,431
• 30 Day Avg. Volume: 20,886,639
• PEG Ratio: 0.10
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -569.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.02
• Price Target Upside: 34.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

West China Cement's overall stock score reflects its mixed financial performance, characterized by declining revenue and net income, and increased leverage. While operational efficiency remains stable, liquidity concerns are highlighted by negative cash flow. The technical analysis indicates neutral market momentum, while valuation metrics suggest the stock is fairly priced. Addressing financial challenges could improve the company's outlook.

West China Cement Business Overview & Revenue Model

Company Description

West China Cement Limited, an investment holding company, manufactures and sells cement and cement products in the People's Republic of China. It sells its products under the Yao Bai and Yaobaishuini names. The company's 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 housing and social infrastructure projects. It also engages in financial leasing and transportation businesses. The company is headquartered in Xi'an, the People's Republic of China.

How the Company Makes Money

West China Cement makes money through the production and sale of cement and related products. Its primary revenue stream comes from supplying cement to infrastructure projects, residential and commercial construction, and various industrial applications across China. The company's extensive distribution network ensures timely delivery to its customers, which includes builders, contractors, and construction companies. Additionally, West China Cement may engage in strategic partnerships or joint ventures to enhance its market presence and production capabilities, thereby contributing to its earnings. Key factors influencing its revenue include the demand for construction materials driven by China's economic growth, urban development policies, and investments in infrastructure projects.

West China Cement Financial Statement Overview

Summary

West China Cement demonstrates a mixed financial performance. The company's revenue and net income have declined, and there's an increase in leverage, posing potential risks. However, operational efficiency remains stable, and the asset base is strong. Negative cash flow raises liquidity concerns that need to be addressed for better financial stability.

Income Statement

The company's revenue has shown fluctuations over the years, with a decline from 2023 to 2024. The gross profit and net profit margins have been generally healthy, but there was a notable decrease in net income in 2024 compared to 2023, impacting the overall profitability. The EBIT and EBITDA margins remained stable, indicating consistent operational efficiency.

Balance Sheet

West China Cement maintains a solid equity base with a relatively stable equity ratio. However, the debt-to-equity ratio has increased, reflecting a higher leverage position, which could pose risks if not managed carefully. Return on equity has weakened due to lower net income, but the company still shows a strong asset base.

Cash Flow

The cash flow situation presents challenges, with a negative free cash flow and an absence of operating cash flow in 2024. The company previously relied on positive operating cash flows, but the recent figures highlight potential liquidity concerns. The company's ability to convert net income to cash has been inconsistent, affecting overall financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.34B	9.02B	8.49B	8.00B	7.13B
	Gross Profit
1.97B	2.46B	2.18B	2.38B	2.34B
	EBIT
1.13B	1.31B	2.07B	2.45B	2.14B
	EBITDA
2.33B	2.62B	3.22B	3.43B	2.91B
	Net Income Common Stockholders
626.18M	421.28M	1.21B	1.59B	1.56B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.16B	922.66M	1.42B	3.59B	751.46M
	Total Assets
36.29B	32.90B	30.24B	26.65B	18.91B
	Total Debt
11.56B	10.68B	9.53B	9.13B	3.71B
	Net Debt
10.40B	9.75B	8.11B	5.62B	3.06B
	Total Liabilities
22.47B	18.73B	16.85B	14.86B	8.38B
	Stockholders Equity
12.27B	12.28B	12.03B	11.31B	10.33B
Cash Flow		Free Cash Flow
-181.88M	-224.02M	-826.78M	-1.84B	-259.73M
	Operating Cash Flow
2.04B	2.70B	2.13B	1.96B	2.68B
	Investing Cash Flow
-1.88B	-3.35B	-3.28B	-3.52B	-3.12B
	Financing Cash Flow
85.46M	139.81M	-1.08B	4.45B	322.04M

West China Cement Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2233, the sentiment is Negative. The current price of 1.5 is below the 20-day moving average (MA) of 1.50, below the 50-day MA of 1.54, and above the 200-day MA of 1.34, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 18.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2233.

West China Cement Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2233	61 Neutral	$8.19B	12.05	5.10%	1.67%	-9.23%	40.52%
2236	56 Neutral	HK$1.16B	7.56	5.53%	―	44.19%	―
Sector *	49 Neutral	$1.96B	-1.15	-21.28%	3.71%	1.17%	-30.86%

West China Cement Corporate Events

West China Cement Expands Stake in CILU with New Acquisition

West China Cement Limited has announced a discloseable transaction involving the acquisition of additional equity interests in Cimenterie de Lukala SA (CILU). The transaction, which involves WIH Cement, a wholly-owned subsidiary of West China Cement, acquiring 134,105 shares from IFC, represents 7.75% of CILU’s issued share capital for a consideration of USD6 million. This acquisition is part of a series of transactions aimed at consolidating West China Cement’s stake in CILU, aligning with its strategic growth objectives in the cement industry. The transactions are subject to regulatory requirements under the Hong Kong Stock Exchange’s Listing Rules, highlighting the company’s commitment to compliance and transparency.

West China Cement Announces 2025 AGM and Key Resolutions

West China Cement Limited has announced its Annual General Meeting scheduled for May 23, 2025, in Hong Kong. Key agenda items include the adoption of financial statements for 2024, declaration of a final dividend, re-election of directors, and authorization for directors to fix remuneration. Additionally, the company seeks approval to allot and issue additional shares, which could impact its capital structure and shareholder value.

West China Cement Projects Significant Profit Increase for 2024

West China Cement Limited has issued a positive profit alert, anticipating a 35% to 45% increase in profit for the year ended December 31, 2024, compared to the previous year. This expected profit growth is attributed to the absence of significant losses and penalties recorded in 2023, including a derecognition loss of a subsidiary and an administrative penalty for anti-trust law violations. Despite stable but low cement prices, the company’s revenue slightly decreased from RMB9,021 million in 2023 to RMB8,330 million in 2024.