Dongwu Cement International Ltd. (0695) AI Stock Analysis

• Market Cap: HK$2.30B
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$5.00 ▼(-2.72% Downside)

Dongwu Cement International Ltd. faces significant financial challenges, which heavily weigh down its overall score. While technical indicators show positive momentum, the overbought conditions and poor valuation metrics limit the stock's attractiveness. The absence of earnings call data and corporate events further emphasizes the financial and valuation concerns.

Positive Factors

Revenue Model

The company's revenue model benefits from long-term contracts and partnerships, providing stable income, particularly in infrastructure projects.

EPS Growth

Despite revenue challenges, the company has shown significant EPS growth, indicating potential operational improvements or cost efficiencies.

Market Position

Strong market position in both domestic and international markets supports long-term growth potential and competitive advantage.

Negative Factors

Revenue Decline

Ongoing revenue decline highlights challenges in market demand or competitive pressures, impacting long-term growth prospects.

High Leverage

High leverage increases financial risk, limiting flexibility and potentially affecting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow indicates liquidity issues, which can hinder operational stability and the ability to fund future growth initiatives.

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 sale of its cement products. The company's revenue model is driven by the demand for cement in construction and infrastructure development, which is influenced by factors such as urbanization, government spending on public projects, and overall economic growth. Key revenue streams include direct sales to construction companies, wholesalers, and retailers. Additionally, the company may benefit from long-term contracts and partnerships with construction firms and government agencies, which provide stable and predictable income. Factors such as production efficiency, cost management, and strategic market positioning also contribute significantly to its earnings.

Dongwu Cement International Ltd. Financial Statement Overview

Summary

Dongwu Cement International Ltd. is experiencing significant financial challenges, with declining revenue, profitability issues, high leverage, and cash flow constraints. These factors raise concerns about the company's ability to sustain operations and finance its obligations without substantial changes or improvements.

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: Positive
• Last Price: 5.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0695, the sentiment is Positive. The current price of 5.14 is above the 20-day moving average (MA) of 4.55, above the 50-day MA of 4.45, and above the 200-day MA of 3.34, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 78.77 is Negative, neither overbought nor oversold. The STOCH value of 86.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2233	60 Neutral	$16.22B	15.25	7.74%	1.22%	20.56%	254.64%
1847	49 Neutral	HK$73.64M	-2.17	-8.97%	―	-11.66%	-128.11%
0695	48 Neutral	HK$2.30B	-71.97	-6.75%	―	-11.16%	41.97%
0691	48 Neutral	HK$3.09B	20.06	0.80%	―	-14.85%	―
1252	48 Neutral	€955.82M	2.62	2.15%	―	0.18%	―
1313	45 Neutral	$11.45B	45.68	0.51%	1.48%	―	―

Dongwu Cement International Ltd. Corporate Events

Dongwu Cement to Hold EGM for Strategic Transaction Approval

Dongwu Cement International Ltd. has announced an Extraordinary General Meeting (EGM) scheduled for December 5, 2025, to approve a significant transaction with Great Ease Holdings Limited. The meeting will address the ratification of a sale and purchase agreement, empowering the company’s directors to execute necessary actions to implement the transaction, which could impact the company’s strategic positioning and shareholder value.

The most recent analyst rating on (HK:0695) stock is a Sell with a HK$4.50 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 Announces Major Subsidiary Disposal

Dongwu Cement International Ltd. has announced a major transaction involving the disposal of a subsidiary, with the sale shares valued at HK$10,000,000. This transaction, which is subject to shareholder approval and other conditions, will result in the target company no longer being a subsidiary, impacting the company’s consolidated financial statements.

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’s Major Shareholder Sells Significant Stake

Dongwu Cement International Ltd. announced the disposal of a significant portion of its shares by its controlling shareholder, Goldview Development Limited. The transactions involve selling shares to Port & Shipping Group (HK) Investment Co., Limited and Suzhou Fenyuan Capital Management Co., Limited, amounting to 37% of the issued shares. This move is expected to lead to a change in the company’s board composition, with new directors being appointed by Port & Shipping HK, reflecting a potential shift in strategic direction and governance.

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 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.