Dongwu Cement International Ltd. (0695) AI Stock Analysis

• Market Cap: HK$2.20B
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -11.16%
• EPS Growth: 41.97%
• Country: HK
• Employees: 275
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -0.02
• Shares Outstanding: 552,000,000
• 10 Day Avg. Volume: 506,860
• 30 Day Avg. Volume: 1,509,634
• PEG Ratio: -0.37
• Price to Book (P/B): 3.66
• Price to Sales (P/S): 6.34
• P/FCF Ratio: -17.59
• 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$4.50
• Price Target Upside: 13.07% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: HK$4.50 ▲(13.07% Upside)

Dongwu Cement International Ltd. is experiencing significant financial difficulties, with declining revenue and profitability, high leverage, and cash flow issues being the most impactful factors. The technical analysis indicates weak momentum, and the valuation is unattractive due to a negative P/E ratio. These factors collectively result in a low overall stock score.

Dongwu Cement International Ltd. Business Overview & Revenue Model

Company Description

Dongwu Cement International Limited, an investment holding company, produces and sells cement under the Dongwu brand name in the People's Republic of China. The company offers ordinary and composite Portland cement, as well as clinker as a by-product. It is also involved in science and technology investment; investment management and consultation services; and research and development activities in biotechnology. The company was incorporated in 2011 and is based in Admiralty, Hong Kong. Dongwu Cement International Limited is a subsidiary of Goldview Development Limited.

How the Company Makes Money

Dongwu Cement International Ltd. generates revenue primarily through the production and sale of cement and related construction materials. The company's key revenue streams include the manufacturing of various types of cement, such as Portland cement and clinker, which are sold to construction companies, contractors, and infrastructure developers. Significant partnerships with construction firms and government infrastructure projects often contribute to consistent demand for their products. Additionally, Dongwu Cement may engage in strategic alliances or joint ventures to expand its market reach and enhance production capabilities, further boosting its revenue potential.

Dongwu Cement International Ltd. Financial Statement Overview

Summary

Dongwu Cement International Ltd. is facing severe financial challenges, including declining revenue, negative profitability, high leverage, and cash flow constraints. These issues raise significant concerns about the company's financial stability and ability to sustain operations.

Income Statement

Dongwu Cement International Ltd. has faced significant revenue decline and profitability issues over recent years. Gross and net profit margins have turned negative, indicating cost-management challenges and inefficiencies. The company has seen a consistent decrease in revenue since 2019, highlighting a worrying downward trend.

Balance Sheet

The company's balance sheet reflects high leverage with a substantial increase in total debt over the past years, contributing to a concerning debt-to-equity ratio. Stockholders' equity has decreased, and the equity ratio has deteriorated. These factors suggest financial instability and increased risk.

Cash Flow

Cash flow analysis reveals a negative free cash flow growth rate, indicating cash constraints. Operating cash flow has been negative, exacerbating liquidity issues. The free cash flow to net income ratio remains unfavorable, reflecting continued challenges in generating adequate cash relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	242.80M	223.60M	307.26M	372.34M	589.46M	558.35M
Gross Profit	-11.86M	-13.92M	-4.49M	3.38M	111.23M	122.40M
EBITDA	-7.23M	-13.35M	-4.66M	-20.28M	109.12M	123.81M
Net Income	-31.91M	-58.63M	-36.52M	-40.47M	46.54M	60.88M
Balance Sheet
Total Assets	959.50M	1.04B	1.15B	1.03B	1.11B	958.41M
Cash, Cash Equivalents and Short-Term Investments	268.65M	342.36M	472.28M	474.30M	496.95M	483.70M
Total Debt	295.80M	300.60M	262.72M	180.26M	137.78M	82.54M
Total Liabilities	469.91M	565.39M	516.96M	454.37M	431.95M	327.26M
Stockholders Equity	391.24M	387.31M	534.86M	587.21M	686.52M	633.30M
Cash Flow
Free Cash Flow	-33.97M	-80.64M	-128.07M	82.34M	-13.87M	123.55M
Operating Cash Flow	-24.86M	-73.65M	-112.30M	124.47M	25.02M	156.40M
Investing Cash Flow	544.84M	122.73M	125.53M	-248.67M	-81.72M	-129.20M
Financing Cash Flow	-175.77M	46.29M	-783.00K	46.40M	29.59M	-9.23M

Dongwu Cement International Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.98
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0695, the sentiment is Neutral. The current price of 3.98 is below the 20-day moving average (MA) of 4.53, below the 50-day MA of 4.98, and above the 200-day MA of 3.07, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 32.16 is Neutral, neither overbought nor oversold. The STOCH value of 13.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0695.

Dongwu Cement International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2233	73 Outperform	$19.99B	18.80	7.74%	1.08%	20.56%	254.64%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0691	56 Neutral	HK$3.57B	23.16	0.80%	―	-14.85%	―
1252	53 Neutral	HK$1.06B	2.91	2.15%	―	0.18%	―
1313	50 Neutral	$13.06B	34.38	0.79%	1.33%	―	―
1847	49 Neutral	HK$78.99M	―	-8.97%	―	-11.66%	-128.11%
0695	39 Underperform	HK$2.20B	―	-6.75%	―	-11.16%	41.97%

Dongwu Cement International Ltd. Corporate Events

Dongwu Cement Reports Revenue Growth Amidst Improved Financial Performance

Dongwu Cement International Ltd. reported an 18% increase in revenue for the first half of 2025, reaching approximately HKD125.8 million compared to the same period in 2024. Despite the revenue growth, the company experienced a gross loss, although it improved from the previous year, and the loss attributable to owners decreased significantly. This financial performance indicates a positive trend in the company’s efforts to stabilize its operations and improve profitability, which may impact its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:0695) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on Dongwu Cement International Ltd. stock, see the HK:0695 Stock Forecast page.

Dongwu Cement Reports Reduced Losses Amid Industry Recovery

Dongwu Cement International Ltd. has issued a profit warning, indicating a significant reduction in losses for the first half of 2025. The company’s loss decreased by approximately 67.6% compared to the same period in 2024, attributed to improved market conditions in China’s cement industry and gains from the disposal of cement clinker capacity indicators. This announcement suggests a moderate recovery in the company’s performance, influenced by domestic industry policies and strategic operational adjustments.

Dongwu Cement to Review Interim Financial Results

Dongwu Cement International Ltd. has announced that its board of directors will hold a meeting on August 22, 2025, to consider and approve the interim financial results for the first half of the year ending June 30, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.