China Shanshui Cement Group (0691) AI Stock Analysis

• Market Cap: HK$2.96B
• Dividend Yield: N/A
• Average Volume (3M): 294.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -21.41%
• EPS Growth: 84.29%
• Country: HK
• Employees: 14,700
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Construction Materials
• EPS (TTM): 0.10
• Shares Outstanding: 4,353,966,300
• 10 Day Avg. Volume: 666,000
• 30 Day Avg. Volume: 294,733
• PEG Ratio: -0.17
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.84
• 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: HK$0.50
• Price Target Upside: -26.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: HK$0.50 ▼(-26.47%Downside)

The overall stock score is influenced most significantly by financial performance challenges, including declining profitability and cash flow volatility. Despite this, technical analysis provides a positive outlook with bullish trends, although the valuation remains unattractive due to negative earnings. Improvements in financial health are necessary for a stronger score.

China Shanshui Cement Group Business Overview & Revenue Model

Company Description

China Shanshui Cement Group Limited, an investment holding company, manufactures and sells cement, clinker, and concrete products in the People's Republic of China. The company is also involved in the mining, production, and sale of limestone; production and sale of concrete aggregates and building materials; installation, maintenance, and repair of equipment and spare parts of cement machines; sale of coal; and development and maintenance of special railway-lines, as well as wash and repair of steam locomotive. In addition, it imports and exports cement, clinker, and related products; develops and sells machinery and electronics; manages construction projects; and provides mineral water, as well as offers investment and management services, and consulting services. China Shanshui Cement Group Limited was incorporated in 2006 and is headquartered in Jinan, the People's Republic of China.

How the Company Makes Money

China Shanshui Cement Group makes money through the production and sale of cement and clinker, which are essential materials for construction and infrastructure projects. The company's revenue mainly comes from the domestic market, where it sells its products to a wide range of customers, including construction companies, government infrastructure projects, and real estate developers. Revenue streams are bolstered by the company's manufacturing capabilities, strategic location of production facilities, and efficient distribution network. Additionally, China Shanshui Cement Group may engage in partnerships or collaborations with other construction and real estate firms to enhance its market reach and business opportunities.

China Shanshui Cement Group Financial Statement Overview

Summary

China Shanshui Cement Group faces several challenges, including declining revenue and profitability, increased leverage, and cash flow volatility. While the company maintains a solid equity base, operational inefficiencies and mounting debts could hinder future growth. Strategic improvements are needed to enhance financial stability and performance.

Income Statement

The company has experienced revenue decline over the past few years, with a significant drop in 2023 and 2024. Gross profit margin in 2024 was 14.43%, indicating a decrease in efficiency compared to previous years. The net profit margin is negative, showing losses in recent years, with -0.97% in 2024. EBIT and EBITDA margins have also declined, with EBIT margin at 1.26% and EBITDA margin at 15.38% in 2024, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio increased from 0.32 in 2020 to 0.30 in 2024, indicating a rising leverage level, although still manageable. The equity ratio stood at 60.12% in 2024, suggesting a strong equity position relative to assets. However, the declining stockholders' equity and increasing debt levels pose potential risks to financial stability.

Cash Flow

Operating cash flow decreased significantly from 2020 to 2024, affecting the company's cash-generating ability. Despite a positive free cash flow in 2024, the free cash flow growth rate is volatile. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings, while free cash flow to net income ratio is more favorable at 0.29.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.51B	18.12B	21.49B	24.66B	20.89B
Gross Profit	2.09B	1.91B	4.23B	7.26B	6.96B
EBITDA	2.23B	755.08M	3.65B	6.36B	6.80B
Net Income	-140.61M	-883.96M	755.41M	2.78B	3.19B
Balance Sheet
Total Assets	30.22B	30.77B	31.46B	28.96B	27.68B
Cash, Cash Equivalents and Short-Term Investments	2.70B	2.77B	2.14B	1.44B	1.42B
Total Debt	5.44B	6.10B	3.68B	3.42B	4.89B
Total Liabilities	12.03B	12.37B	12.02B	10.21B	11.80B
Stockholders Equity	18.18B	18.33B	19.16B	18.49B	15.70B
Cash Flow
Free Cash Flow	-285.94M	-780.11M	425.18M	1.85B	2.26B
Operating Cash Flow	538.17M	424.23M	2.66B	3.55B	3.51B
Investing Cash Flow	-648.96M	-1.63B	-2.95B	-2.10B	-1.33B
Financing Cash Flow	27.99M	1.31B	1.05B	-1.44B	-2.14B

China Shanshui Cement Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0691, the sentiment is Positive. The current price of 0.68 is above the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.51, and above the 200-day MA of 0.51, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 65.19 is Neutral, neither overbought nor oversold. The STOCH value of 65.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0691.

China Shanshui Cement Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	59 Neutral	HK$17.74B	4.73	-5.52%	3.33%	-3.57%	-61.41%
0691	56 Neutral	HK$2.96B	―	-0.77%	―	-21.41%	84.29%
AHCHF	―	$18.08B	13.76	4.26%	1.17%	―	―
CJRCF	―	$1.85B	35.51	0.79%	7.97%	―	―
WCHNF	―	$1.48B	11.13	5.10%	15.14%	―	―
6655	78 Outperform	HK$37.16B	11.10	8.32%	0.41%	-1.00%	-9.13%
0695	46 Neutral	HK$1.44B	―	-9.39%	―	-27.23%	-60.42%

China Shanshui Cement Group Corporate Events

China Shanshui Cement Group’s Legal Allegations Dismissed

China Shanshui Cement Group Limited announced the dismissal of legal allegations against its former directors and associated companies, following a trial concerning breaches of fiduciary duties and unlawful means conspiracy. The judgment, delivered by Justice Coleman, highlighted issues with the impartiality of certain receivers involved, impacting the company’s internal governance dynamics.

China Shanshui Cement Group AGM Results and Strategic Approvals

At the annual general meeting held on May 22, 2025, China Shanshui Cement Group Limited successfully passed several key resolutions, including the re-election of directors and the re-appointment of auditors. However, a special resolution to amend the company’s memorandum and articles of association did not pass. The approval of various framework agreements indicates ongoing strategic initiatives, though some agreements received notable opposition, reflecting potential stakeholder concerns.

China Shanshui Cement Group Announces New Framework Agreements for 2024

China Shanshui Cement Group Limited has announced supplemental information regarding its continuing connected transactions for the year 2024. The company has entered into several framework agreements with CNBMG and Shandong Quanxing, covering mine development services, cement production equipment and supplies, engineering and technical services, and clinker and cement transactions. These agreements, effective from June 1, 2024, to May 31, 2025, aim to streamline operations and strengthen partnerships, potentially impacting the company’s operational efficiency and market competitiveness.

China Shanshui Cement Group Schedules AGM with Strategic Resolutions

China Shanshui Cement Group Limited has announced its upcoming annual general meeting (AGM) scheduled for May 22, 2025, in Jinan City, Shandong Province. Key agenda items include the adoption of the 2024 financial statements, re-election of directors, and approval of several framework agreements related to mine development, engineering, and cement transactions. These resolutions, if passed, will support the company’s strategic operations and potentially enhance its market positioning by securing essential service agreements and maintaining leadership continuity.

China Shanshui Cement Group Reports Q1 2025 Financial Results

China Shanshui Cement Group reported its unaudited financial results for the first quarter of 2025, revealing a decrease in operating revenue and a significant operating loss compared to the same period in 2024. Despite a reduction in operating costs, the company faced challenges with increased administrative expenses and costs incurred during off-peak suspension, impacting its financial performance.

China Shanshui Cement Group Renews 2025 Framework Agreements

China Shanshui Cement Group has renewed its continuing connected transactions through the 2025 Framework Agreements with CNBMG and its affiliates. These agreements cover mine development services, cement production equipment and supplies, engineering and technical services, and clinker and cement transactions. The transactions are subject to various regulatory requirements under the Hong Kong Listing Rules, including independent shareholder approval for certain agreements. This renewal indicates the company’s ongoing collaboration with CNBMG and aims to ensure the continuity of its operations and compliance with listing regulations.