Dongwu Cement International Ltd. (0695) AI Stock Analysis

• Market Cap: HK$1.37B
• Dividend Yield: N/A
• Average Volume (3M): 491.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -27.23%
• EPS Growth: -60.42%
• Country: HK
• Employees: 275
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Construction Materials
• EPS (TTM): -0.11
• Shares Outstanding: 552,000,000
• 10 Day Avg. Volume: 341,600
• 30 Day Avg. Volume: 491,600
• PEG Ratio: N/A
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.39
• 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$2.50
• Price Target Upside: 0.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$2.50 ▲(0.40%Upside)

The overall stock score is primarily driven by significant financial underperformance, characterized by declining revenues and profitability issues. While technical indicators offer some positive signals, the negative valuation metrics highlight ongoing profitability challenges.

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 through the production and sale of cement products. The company's primary revenue stream comes from selling its cement to a diverse customer base, including construction companies, contractors, and government entities involved in infrastructure development. Additionally, Dongwu Cement may engage in strategic partnerships with other firms in the construction and real estate sectors to enhance its market presence and expand its distribution network. Factors such as regional demand for construction materials, cost management, and efficient production processes also significantly contribute to the company's earnings.

Dongwu Cement International Ltd. Financial Statement Overview

Summary

Dongwu Cement International Ltd. is experiencing significant financial challenges, including declining revenue, profitability issues, high leverage, and cash flow constraints. These factors raise concerns about the company's 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	223.60M	307.26M	372.34M	589.46M	546.98M
Gross Profit	-13.92M	-4.49M	3.38M	111.23M	119.91M
EBITDA	-13.35M	-4.66M	-26.89M	109.12M	123.81M
Net Income	-58.63M	-36.52M	-43.07M	46.54M	60.88M
Balance Sheet
Total Assets	1.04B	1.15B	1.03B	1.11B	958.41M
Cash, Cash Equivalents and Short-Term Investments	342.36M	472.28M	474.30M	496.95M	478.21M
Total Debt	300.60M	262.72M	180.26M	137.78M	81.60M
Total Liabilities	565.39M	516.96M	454.37M	431.95M	327.26M
Stockholders Equity	387.31M	534.86M	587.21M	686.52M	633.30M
Cash Flow
Free Cash Flow	-80.64M	-128.07M	82.34M	-13.87M	123.55M
Operating Cash Flow	-73.65M	-112.30M	124.47M	25.02M	156.40M
Investing Cash Flow	149.50M	125.53M	-248.67M	-81.72M	―
Financing Cash Flow	46.29M	-783.00K	46.40M	29.59M	―

Dongwu Cement International Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2.49 is below the 20-day moving average (MA) of 2.64, above the 50-day MA of 2.44, and above the 200-day MA of 2.26, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.20 is Neutral, neither overbought nor oversold. The STOCH value of 45.10 is Neutral, 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
0691	53 Neutral	HK$2.22B	―	-0.77%	―	-21.41%	84.29%
0695	46 Neutral	HK$1.37B	―	-9.39%	―	-27.23%	-60.42%
Sector *	44 Neutral	C$961.63M	-6.69	-13.73%	2.46%	17.55%	-32.57%
CJRCF	―	$1.67B	35.51	0.79%	1.07%	―	―
WCHNF	―	$1.23B	11.13	5.10%	2.65%	―	―
T18	―	€99.72M	2.54	1.77%	―	―	―
1847	49 Neutral	HK$58.91M	―	-9.48%	―	-50.95%	-223.78%

Dongwu Cement International Ltd. Corporate Events

Dongwu Cement Announces Board Changes with New Appointment

Dongwu Cement International Ltd. announced the resignation of Mr. Cao Kuangyu as an independent non-executive director due to personal commitments, effective June 4, 2025. Mr. Yuan Yuan has been appointed as his replacement, bringing extensive experience in the finance and securities industry, which may enhance the company’s strategic direction and governance.

Dongwu Cement International Announces Board Composition and Committee Roles

Dongwu Cement International Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. The board comprises executive, non-executive, and independent non-executive directors, with the latter group also serving on the company’s audit, remuneration, and nomination committees. This announcement underscores the company’s commitment to governance and strategic oversight, potentially impacting its operational efficiency and stakeholder confidence.

Dongwu Cement Secures Unanimous Approval at 2024 AGM

Dongwu Cement International Ltd. announced the successful passing of all resolutions at its 2024 Annual General Meeting held on May 22, 2025. Key resolutions included the approval of the 2024 financial statements, re-election of directors, and the re-appointment of BDO Limited as auditors. The unanimous approval of these resolutions reflects strong shareholder support and positions the company for continued stability and governance.

Dongwu Cement Announces 2025 AGM Agenda

Dongwu Cement International Ltd. has announced its upcoming annual general meeting (AGM) scheduled for May 22, 2025, in Shanghai, China. Key agenda items include the approval of financial statements for the year ending December 2024, re-election of several directors, and re-appointment of BDO Limited as auditors. The meeting will also address the authorization of the board to manage share capital activities, which could impact the company’s financial strategies and shareholder value.