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West China Cement
(2233)
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Rating:48Neutral
Price Target:
HK$1.50
▼(-26.11% Downside)
Action:Reiterated
Date:10/23/26
The score is primarily held back by weak cash generation (consistently negative free cash flow and a 2025 deterioration) alongside meaningful leverage for a cyclical business. Technicals add further pressure with the price below key moving averages and negative MACD. Valuation and a ~3.2% dividend offer some support but are not enough to offset the cash flow and trend concerns.
Positive Factors
Sustained Operating Profitability
Positive gross and operating margins show that the core cement and building-materials model remains economically viable despite weaker recent demand. Maintaining meaningful profitability gives the company a base for reinvestment and resilience through the construction cycle.
Negative Factors
Weakening Revenue Trend
Recent revenue contraction indicates that demand and pricing conditions are not supporting growth, while earnings remain below the 2020–2022 peaks. For a cyclical construction-materials company, sustained weakness can reduce capacity utilization and limit operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Operating Profitability
Positive gross and operating margins show that the core cement and building-materials model remains economically viable despite weaker recent demand. Maintaining meaningful profitability gives the company a base for reinvestment and resilience through the construction cycle.
Read all positive factors
West China Cement (2233) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$9.78B
Dividend Yield3.07%
Average Volume (3M)8.85M
Price to Earnings (P/E)16.5
Beta (1Y)1.08
Revenue Growth-10.09%
EPS Growth-45.87%
CountryHK
Employees9,756
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.09
Shares Outstanding5,462,532,700
10 Day Avg. Volume9,199,300
30 Day Avg. Volume8,851,005
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)1.20
Price to Sales (P/S)1.58
P/FCF Ratio-8.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$2.32Price Target Upside14.29% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)0.13
Revenue Forecast (FY)HK$10.29B
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
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.67B | 9.62B | 8.34B | 9.02B | 8.49B | 8.00B |
| Gross Profit | 2.22B | 2.48B | 1.97B | 2.46B | 2.18B | 2.38B |
| EBITDA | 1.69B | 3.05B | 2.34B | 2.62B | 3.22B | 3.43B |
| Net Income | 504.86M | 879.58M | 626.18M | 421.28M | 1.21B | 1.59B |
Balance Sheet | ||||||
| Total Assets | 36.20B | 35.25B | 36.29B | 32.90B | 30.24B | 26.65B |
| Cash, Cash Equivalents and Short-Term Investments | 2.58B | 1.48B | 1.16B | 922.66M | 1.42B | 3.59B |
| Total Debt | 12.38B | 11.96B | 11.56B | 10.68B | 9.53B | 9.13B |
| Total Liabilities | 22.19B | 21.33B | 22.47B | 18.73B | 16.85B | 14.86B |
| Stockholders Equity | 12.47B | 12.66B | 12.27B | 12.28B | 12.03B | 11.31B |
Cash Flow | ||||||
| Free Cash Flow | -1.19B | -1.77B | -181.88M | -224.02M | -826.78M | -1.84B |
| Operating Cash Flow | 1.14B | 1.09B | 2.04B | 2.70B | 2.13B | 1.96B |
| Investing Cash Flow | -2.24B | -2.36B | -1.88B | -3.35B | -3.28B | -3.52B |
| Financing Cash Flow | 1.02B | 318.19M | 85.46M | 139.81M | -1.08B | 4.45B |
West China Cement Technical Analysis
Neutral
2.03
Price Trends
1.83
Negative
1.75
Positive
2.18
Negative
Market Momentum
-0.03
Negative
51.56
Neutral
80.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2233, the sentiment is Neutral. The current price of 2.03 is above the 20-day moving average (MA) of 1.76, above the 50-day MA of 1.83, and below the 200-day MA of 2.18, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 51.56 is Neutral, neither overbought nor oversold. The STOCH value of 80.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2233.
West China Cement Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | HK$106.32B | 21.08 | 2.37% | 4.96% | -6.86% | -26.49% | |
63 Neutral | HK$44.21B | 12.81 | 10.68% | 4.14% | 18.04% | 28.32% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
48 Neutral | HK$9.78B | 16.46 | 4.02% | 3.07% | -10.09% | -45.87% | |
48 Neutral | HK$1.09B | -0.62 | -8.62% | 3.22% | -23.06% | -1157.34% | |
43 Neutral | HK$21.60B | -2.19 | -5.48% | 6.02% | 0.12% | -214.59% | |
42 Neutral | HK$3.10B | -46.56 | -20.37% | 5.23% | -41.36% | -130.80% |
* Basic Materials Sector Average
HK:2233
West China Cement
1.79
-1.10
-38.15%
HK:0914
Anhui Conch Cement Company
17.12
-4.98
-22.53%
HK:3323
China National Building Material Co
2.85
-2.48
-46.55%
HK:0691
China Shanshui Cement Group
0.25
-0.51
-67.11%
HK:6655
Huaxin Cement Co., Ltd. Class H
14.84
-1.97
-11.73%
HK:0695
Dongwu Cement International Ltd.
5.62
1.34
31.19%
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....
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.