West China Cement Ltd. (HK:2233)
:2233
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West China Cement
(2233)
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Rating:49Neutral
Price Target:
HK$1.50
▼(-55.88% Downside)
Action:Reiterated
Date:06/11/26
The score is held back primarily by weak cash conversion (persistently negative free cash flow, worsening in 2025) and elevated leverage for a cyclical business, alongside a clear bearish technical trend. A low P/E and moderate dividend yield provide some valuation support but do not fully offset the financial and momentum risks.
Positive Factors
Margin profile
Sustained gross (~27%) and operating (~17%) margins indicate structural pricing power and cost control in cement operations. These margins provide a buffer through cyclical demand swings, supporting core profitability and the ability to fund maintenance capex and sustain operations over the next several quarters.
Negative Factors
Weak cash generation
Persistent negative free cash flow and a sharp drop in operating cash flow mean accounting profits are not converting to discretionary cash. This structural cash-generation shortfall constrains the company’s ability to reduce debt, fund growth or absorb demand cyclicality without external financing over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin profile
Sustained gross (~27%) and operating (~17%) margins indicate structural pricing power and cost control in cement operations. These margins provide a buffer through cyclical demand swings, supporting core profitability and the ability to fund maintenance capex and sustain operations over the next several quarters.
Read all positive factors
West China Cement (2233) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$8.90B
Dividend Yield1.29%
Average Volume (3M)42.61M
Price to Earnings (P/E)8.8
Beta (1Y)0.93
Revenue Growth15.17%
EPS Growth39.36%
CountryHK
Employees9,504
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)0.16
Shares Outstanding5,462,532,700
10 Day Avg. Volume48,984,311
30 Day Avg. Volume42,607,974
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)1.20
Price to Sales (P/S)1.58
P/FCF Ratio-8.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$1.10Price Target Upside-67.65% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)0.18
Revenue Forecast (FY)HK$11.33B
West China Cement Business Overview & Revenue Model
Company Description
West China Cement Limited functions as an investment holding enterprise, primarily focused on the manufacturing and distribution of cement and related building materials throughout the People's Republic of China. Its product lines are offered unde...
How the Company Makes Money
West China Cement primarily makes money by selling cement and cement-related building materials to customers in the construction value chain (e.g., contractors, developers, and infrastructure project participants). Its core revenue stream is deriv...
West China Cement Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
33
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.62B | 8.34B | 9.02B | 8.49B | 8.00B |
| Gross Profit | 2.48B | 1.97B | 2.46B | 2.18B | 2.38B |
| EBITDA | 3.02B | 2.33B | 2.62B | 3.22B | 3.43B |
| Net Income | 879.58M | 626.18M | 421.28M | 1.21B | 1.59B |
Balance Sheet | |||||
| Total Assets | 35.25B | 36.29B | 32.90B | 30.24B | 26.65B |
| Cash, Cash Equivalents and Short-Term Investments | 1.48B | 1.16B | 922.66M | 1.42B | 3.59B |
| Total Debt | 11.96B | 11.56B | 10.68B | 9.53B | 9.13B |
| Total Liabilities | 21.33B | 22.47B | 18.73B | 16.85B | 14.86B |
| Stockholders Equity | 12.66B | 12.27B | 12.28B | 12.03B | 11.31B |
Cash Flow | |||||
| Free Cash Flow | -1.77B | -181.88M | -224.02M | -826.78M | -1.84B |
| Operating Cash Flow | 1.09B | 2.04B | 2.70B | 2.13B | 1.96B |
| Investing Cash Flow | -2.36B | -1.88B | -3.35B | -3.28B | -3.52B |
| Financing Cash Flow | 318.19M | 85.46M | 139.81M | -1.08B | 4.45B |
West China Cement Technical Analysis
Negative
3.40
Price Trends
2.24
Negative
2.47
Negative
2.72
Negative
Market Momentum
-0.18
Positive
23.63
Positive
25.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2233, the sentiment is Negative. The current price of 3.4 is above the 20-day moving average (MA) of 1.97, above the 50-day MA of 2.24, and above the 200-day MA of 2.72, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 23.63 is Positive, neither overbought nor oversold. The STOCH value of 25.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2233.
West China Cement Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | HK$38.01B | 11.91 | 10.24% | 4.82% | 10.08% | 33.29% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | HK$104.97B | 12.06 | 4.06% | 4.59% | -9.32% | 5.05% | |
52 Neutral | HK$45.63B | -13.14 | -2.95% | 3.30% | -2.13% | -279.50% | |
49 Neutral | HK$8.90B | 8.75 | 6.91% | 1.29% | 15.17% | 39.36% | |
48 Neutral | HK$4.61B | -75.14 | -16.84% | ― | -3.75% | -13.94% | |
45 Neutral | HK$1.35B | -1.17 | -5.53% | ― | -20.28% | -604.87% |
* Basic Materials Sector Average
HK:2233
West China Cement
1.56
0.21
15.21%
HK:0914
Anhui Conch Cement Company
17.64
-0.53
-2.90%
HK:3323
China National Building Material Co
5.76
2.31
67.00%
HK:0691
China Shanshui Cement Group
0.31
-0.16
-34.04%
HK:6655
Huaxin Cement Co., Ltd. Class H
12.52
4.23
51.01%
HK:0695
Dongwu Cement International Ltd.
8.10
5.39
198.89%
West China Cement Corporate Events
West China Cement Sets Final 2025 Dividend and HK Dollar Payout Terms
Jun 1, 2026
West China Cement Limited has proposed a final ordinary dividend of RMB 0.048 per share for the financial year ended 31 December 2025, with shareholder approval scheduled for 29 May 2026. The move underscores the company’s intention to retur...
West China Cement Shareholders Approve All AGM Resolutions and Final Dividend
May 29, 2026
West China Cement Limited reported that shareholders at its annual general meeting on 29 May 2026 approved all resolutions put forward by the board, underscoring broad investor support for its current governance and strategic direction. The meetin...
West China Cement Backs Deloitte Reappointment With 2026 Audit Fee Estimate
May 7, 2026
West China Cement has issued a supplemental announcement to its April 24, 2026 circular, focusing on auditor arrangements ahead of its upcoming annual general meeting. The company confirmed that Deloitte Touche Tohmatsu will retire at the meeting ...
West China Cement Details Valuation Basis for AfriSam Acquisition
Apr 30, 2026
West China Cement has issued a supplemental announcement detailing how it valued AfriSam Holdings in connection with its previously disclosed acquisition of interests and subscription of new shares. The company explained that it rejected cost and ...
West China Cement Sets Virtual AGM, Dividend and Share Issuance Mandate
Apr 23, 2026
West China Cement has called its 2026 annual general meeting for 29 May, to be held entirely by electronic means, where shareholders will review the audited consolidated financial statements and directors’ and auditors’ reports for the...
West China Cement to Acquire South Africa’s AfriSam in R2.5 Billion Deal
Apr 2, 2026
West China Cement has agreed, via an indirect wholly owned subsidiary, to acquire shares in and subscribe for new equity of South Africa’s AfriSam Holdings as part of a single, indivisible transaction. The deal, structured as a discloseable ...
West China Cement Declares Final 2025 Dividend and Sets Payout Timetable
Mar 23, 2026
West China Cement Limited has proposed a final ordinary cash dividend of RMB 0.048 per share for the financial year ended 31 December 2025, underscoring its intent to return capital to shareholders following its annual results. The distribution is...
West China Cement Posts Strong 2025 Profit Growth on Higher Volumes
Mar 23, 2026
West China Cement Limited reported a strong set of results for the year ended 31 December 2025, driven by higher sales volumes and improved profitability across its core products. Total cement and clinker sales rose 9.0% to 21.8 million tons, with...
West China Cement in Early Talks to Sell China Assets to Connected Buyer
Mar 13, 2026
West China Cement has entered preliminary talks to sell certain China-based assets to a potential buyer connected to its substantial shareholder Conch International Holdings. The proposed disposal aims to streamline the company’s investment ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.