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West China Cement Ltd. (HK:2233)
:2233
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West China Cement (2233) AI Stock Analysis

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HK:2233

West China Cement

(2233)

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Neutral 55 (OpenAI - Gpt-5.6Sol)
Rating:55Neutral
Price Target:
HK$2.00
▼(-1.48% Downside)
Action:Reiterated
Date:07/23/26
The score is held back primarily by financial quality—especially persistently negative free cash flow and elevated leverage alongside weakening revenue—despite still-positive operating profitability. Technical signals are mixed (short-term rebound but longer-term downtrend), while a relatively low P/E and a ~3% dividend yield provide the main support to the overall score.
Positive Factors
Positive operating profitability
Sustained positive gross and operating margins show that the core cement business remains economically viable despite cyclical demand pressure. This profitability provides a foundation for recovery if construction volumes and regional pricing improve.
Negative Factors
Weakening revenue trend
Consecutive revenue weakness signals a down-cycle in the construction materials business and limits operating leverage. Persistent volume or pricing pressure could keep earnings below prior peaks and make margin improvement harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive operating profitability
Sustained positive gross and operating margins show that the core cement business remains economically viable despite cyclical demand pressure. This profitability provides a foundation for recovery if construction volumes and regional pricing improve.
Read all positive factors

West China Cement (2233) vs. iShares MSCI Hong Kong ETF (EWH)

West China Cement Business Overview & Revenue Model

Company Description
West China Cement Limited functions as an investment holding enterprise, primarily focused on the manufacturing and distribution of cement and related building materials throughout the People's Republic of China. Its product lines are offered unde...
How the Company Makes Money
West China Cement makes money primarily by selling cement and clinker to customers in the construction value chain (e.g., contractors, developers, infrastructure project owners, and building-material distributors). Its revenue model is largely vol...

West China Cement Financial Statement Overview

Summary
Profitability remains positive (2025 gross margin ~27% and operating margin ~17%), but revenue weakened in 2025 (~-6.9%) and earnings are well below the 2020–2022 peak. Leverage is meaningful (debt-to-equity ~0.94), and cash generation is a major risk: operating cash flow fell sharply in 2025 and free cash flow has been consistently negative, turning very negative again in 2025 (~-1.77B).
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
33
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue9.62B8.34B9.02B8.49B8.00B
Gross Profit2.48B1.97B2.46B2.18B2.38B
EBITDA3.02B2.33B2.62B3.22B3.43B
Net Income879.58M626.18M421.28M1.21B1.59B
Balance Sheet
Total Assets35.25B36.29B32.90B30.24B26.65B
Cash, Cash Equivalents and Short-Term Investments1.48B1.16B922.66M1.42B3.59B
Total Debt11.96B11.56B10.68B9.53B9.13B
Total Liabilities21.33B22.47B18.73B16.85B14.86B
Stockholders Equity12.66B12.27B12.28B12.03B11.31B
Cash Flow
Free Cash Flow-1.77B-181.88M-224.02M-826.78M-1.84B
Operating Cash Flow1.09B2.04B2.70B2.13B1.96B
Investing Cash Flow-2.36B-1.88B-3.35B-3.28B-3.52B
Financing Cash Flow318.19M85.46M139.81M-1.08B4.45B

West China Cement Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
HK$50.70B14.8510.68%3.70%18.04%28.32%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
61
Neutral
HK$104.28B15.033.27%5.09%-6.86%-26.49%
55
Neutral
HK$10.62B18.044.02%2.86%-10.09%-45.87%
52
Neutral
HK$4.42B-66.33-20.37%5.23%-41.36%-130.80%
44
Neutral
HK$26.01B-2.67-5.48%5.03%0.12%-214.59%
44
Neutral
HK$1.13B-0.65-8.62%3.22%-23.06%-1157.34%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2233
West China Cement
1.93
-0.77
-28.68%
HK:0914
Anhui Conch Cement Company
16.69
-6.30
-27.42%
HK:3323
China National Building Material Co
3.41
-1.63
-32.36%
HK:0691
China Shanshui Cement Group
0.26
-0.70
-72.92%
HK:6655
Huaxin Cement Co., Ltd. Class H
16.61
3.08
22.81%
HK:0695
Dongwu Cement International Ltd.
8.10
2.50
44.55%

West China Cement Corporate Events

West China Cement Profit Halves as Interim Revenue Falls but Margins Hold
Aug 24, 2026
West China Cement reported weaker interim results for the six months to 30 June 2026, as revenue fell 16.5% to RMB4.53 billion and profit attributable to owners dropped 49.4% to RMB378.8 million amid lower cement and concrete sales volumes. Despit...
West China Cement Sets Board Meeting to Approve Interim Results and Mull Dividend
Aug 11, 2026
West China Cement Limited has scheduled a board meeting for 24 August 2026 to review and approve the group’s interim financial results for the six months ended 30 June 2026. The board will also consider the declaration of an interim dividend...
West China Cement Clarifies Profit Warning, Signals 45–50% Earnings Drop
Aug 9, 2026
West China Cement has clarified an earlier profit warning, correcting a clerical error in its guidance for the first half of 2026. Based on a preliminary review of unaudited consolidated management accounts, the group now expects profit attributab...
West China Cement Warns of 45–50% Profit Drop for First Half 2026
Aug 7, 2026
West China Cement has issued a profit warning for the first half of 2026, indicating that profit attributable to shareholders is expected to fall by about RMB374.2 million to RMB411.6 million, a decline of approximately 45% to 50% from the RMB748....
West China Cement Sets Final 2025 Dividend and HK Dollar Payout Terms
Jun 1, 2026
West China Cement Limited has proposed a final ordinary dividend of RMB 0.048 per share for the financial year ended 31 December 2025, with shareholder approval scheduled for 29 May 2026. The move underscores the company’s intention to retur...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2026