China Shanshui Cement Group (0691) AI Stock Analysis

• Market Cap: HK$2.57B
• Dividend Yield: N/A
• Average Volume (3M): 283.64K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.39
• Revenue Growth: -14.85%
• EPS Growth: N/A
• Country: HK
• Employees: 14,700
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -0.06
• Shares Outstanding: 4,353,966,300
• 10 Day Avg. Volume: 120,700
• 30 Day Avg. Volume: 283,636
• PEG Ratio: 0.17
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 95.27
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$0.58 ▼(-1.02% Downside)

The overall stock score is primarily impacted by weak financial performance and bearish technical indicators. The company's declining revenue, profitability, and cash flow issues are significant concerns. Additionally, the stock's technical analysis suggests downward momentum, further weighing on the score. The valuation is moderate but does not offset the other negative factors.

Positive Factors

Strong equity position

A 60.12% equity ratio provides a durable capital buffer and lowers reliance on external debt. That strong equity base supports funding of capital-intensive plants, absorbs cyclical revenue shocks, and gives the company flexibility to maintain operations through medium-term construction cycles.

Positive free cash flow in 2024

Achieving positive free cash flow and a FCF/net income ratio of 0.29 shows the business can convert earnings into cash. This supports capex, working capital and debt servicing capacity over the medium term, aiding financial resilience despite FCF volatility in prior years.

Integrated cement-concrete business

An integrated product mix (cement, clinker, ready-mix concrete) ties the company to steady local construction and infrastructure demand. Vertical product coverage reduces single-product exposure, supports recurring revenue streams, and limits transport-driven margin leakage in local markets.

Negative Factors

Sustained revenue decline

A nearly 15% revenue decline signals structural weakness in demand, pricing, or share. Persistent top-line contraction reduces capacity utilization and erodes scale economics, making it harder to restore margins and generate consistent cash flow without operational changes or market recovery.

Eroding profitability margins

Negative net margin and falling gross/EBIT margins indicate profitability deterioration. Slim operating margins limit the firm's ability to absorb higher input or energy costs and reduce retained earnings, heightening the risk of ongoing losses absent structural cost or pricing improvements.

Weak operating cash generation

Declining operating cash flow and a negative OCF-to-net-income ratio show earnings are not converting to cash reliably. This strains liquidity, raises reliance on external financing, and limits the company's ability to fund capex or pay down debt, risking longer-term financial flexibility.

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 generates revenue primarily through the production and sale of cement, which constitutes its core business. The company benefits from a diversified revenue model that includes the sale of various cement products such as ordinary Portland cement, blended cement, and other specialty cement products. Key revenue streams also include sales of aggregates and concrete, which are essential materials in construction. The company's revenue is bolstered by its extensive distribution network and strategic partnerships with construction firms and contractors, enabling it to secure long-term contracts and projects. Additionally, the company capitalizes on the growing demand for construction materials in urban development and infrastructure projects across China, which contributes significantly to its earnings.

China Shanshui Cement Group Financial Statement Overview

Summary

China Shanshui Cement Group faces declining revenue and profitability, increased leverage, and cash flow volatility. Despite a solid equity base, operational inefficiencies and mounting debts could hinder future growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.50B	14.51B	18.12B	21.49B	24.66B	20.89B
Gross Profit	2.27B	2.09B	1.91B	3.90B	7.26B	6.96B
EBITDA	2.52B	2.23B	755.08M	3.68B	6.36B	6.80B
Net Income	139.77M	-140.61M	-883.96M	755.41M	2.78B	3.19B
Balance Sheet
Total Assets	29.99B	30.22B	30.77B	31.46B	28.96B	27.68B
Cash, Cash Equivalents and Short-Term Investments	2.62B	2.70B	2.77B	2.14B	1.44B	1.42B
Total Debt	6.10B	5.44B	6.10B	4.57B	3.42B	4.89B
Total Liabilities	12.10B	12.03B	12.37B	12.02B	10.21B	11.80B
Stockholders Equity	17.92B	18.18B	18.33B	19.16B	18.49B	15.70B
Cash Flow
Free Cash Flow	1.26B	21.03M	-780.11M	425.18M	1.85B	2.26B
Operating Cash Flow	1.00B	538.17M	424.23M	2.66B	3.55B	3.51B
Investing Cash Flow	-425.92M	-648.96M	-1.63B	-2.95B	-2.10B	-1.33B
Financing Cash Flow	-943.23M	27.99M	1.31B	1.05B	-1.44B	-2.14B

China Shanshui Cement Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 0.59 is above the 20-day moving average (MA) of 0.56, below the 50-day MA of 0.64, and below the 200-day MA of 0.68, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 40.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6655	66 Neutral	HK$50.81B	10.84	10.68%	4.82%	0.40%	62.35%
0914	65 Neutral	HK$141.87B	13.19	4.59%	4.59%	-28.50%	23.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2233	60 Neutral	HK$20.48B	19.26	7.74%	1.29%	20.56%	254.64%
0695	52 Neutral	HK$5.02B	-157.27	-6.75%	―	-11.16%	41.97%
0691	48 Neutral	HK$2.57B	16.67	0.80%	―	-14.85%	―
1313	45 Neutral	HK$11.94B	47.63	0.51%	1.52%	―	―