Dongwu Cement International Ltd. (0695) AI Stock Analysis

• Market Cap: HK$4.91B
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: HK$8.50 ▲(2.41% Upside)

The score is primarily held down by very weak financial performance (declining revenue, negative profitability, high leverage, and negative cash generation). Technicals are supportive of an ongoing uptrend but are offset by clear overbought signals, while valuation is constrained by a negative P/E and no provided dividend yield.

Positive Factors

Market Position

Being described as a prominent player with production, distribution and sales capabilities across construction sectors implies durable market access and established customer relationships. This scale helps absorb demand volatility, supports pricing negotiations, and preserves long-term project supply roles versus smaller rivals.

Structural Demand Tailwinds

Exposure to secular drivers—urbanization and government infrastructure spending—provides a sustained baseline for cement demand. Over a multi-month horizon these structural trends underpin volume potential and plant utilization, easing recovery if market share is defended and capacity is managed prudently.

Diverse Revenue Channels & Contracting

A mix of direct sales, wholesale/retail channels and long-term contracts enhances revenue stability and predictability. Diversified customer segments reduce single-client dependency, support more stable cash flows, and enable longer-term planning for production and working-capital needs.

Negative Factors

Multi-year Revenue Decline

Persistent revenue decline since 2019 erodes scale advantages and increases unit costs, reducing margin resilience. Over a 2–6 month horizon this trend constrains pricing power and makes it harder to absorb fixed costs, hindering recovery unless the company regains volume or restructures operations.

Negative Profitability and Margins

Negative gross and net margins indicate the business fails to cover direct and overhead costs, which is structurally damaging. Sustained unprofitability depletes equity, reduces reinvestment capacity, and may force cost cuts or asset disposals to restore sustainable earnings over the medium term.

High Leverage and Weak Cash Generation

A rising debt load combined with negative operating and free cash flow creates refinancing and liquidity risk. This weak cash generation limits capex and working-capital flexibility, increases interest burden, and raises the probability of covenant pressure or creditor-enforced restructuring over coming quarters.

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: 8.30
• 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 8.3 is above the 20-day moving average (MA) of 7.53, above the 50-day MA of 6.01, and above the 200-day MA of 4.03, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 78.55 is Negative, neither overbought nor oversold. The STOCH value of 84.05 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	HK$17.70B	16.64	7.74%	1.29%	20.56%	254.64%
0691	48 Neutral	HK$2.35B	15.25	0.80%	―	-14.85%	―
1252	48 Neutral	HK$801.65M	2.19	2.15%	―	0.18%	―
1313	45 Neutral	HK$11.24B	44.85	0.51%	1.52%	―	―
1847	44 Neutral	HK$66.94M	-1.97	-8.97%	―	-11.49%	-128.11%
0695	43 Neutral	HK$4.91B	-153.98	-6.75%	―	-11.16%	41.97%

Dongwu Cement International Ltd. Corporate Events

Dongwu Cement’s Shareholders Approve Key Agreement at EGM

Dongwu Cement International Ltd. announced that during its Extraordinary General Meeting held on December 5, 2025, shareholders approved the sale and purchase agreement with Great Ease Holdings Limited. This agreement, along with its terms and conditions, was ratified, allowing the company’s directors to execute necessary actions to implement the transactions, potentially impacting the company’s strategic operations and market positioning.

The most recent analyst rating on (HK:0695) stock is a Hold with a HK$5.50 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 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.