West China Cement (2233) AI Stock Analysis

• Market Cap: $7.48B
• Dividend Yield: 2.71%
• Average Volume (3M): 21.92M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.80
• Revenue Growth: -9.23%
• EPS Growth: 40.52%
• Country: HK
• Employees: 9,504
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Construction Materials
• EPS (TTM): 0.04
• Shares Outstanding: 5,462,532,700
• 10 Day Avg. Volume: 25,375,160
• 30 Day Avg. Volume: 21,917,445
• PEG Ratio: 0.10
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -569.14
• 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: $1.96
• Price Target Upside: 41.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: HK$1.50 ▲(7.91%Upside)

West China Cement's stock score is primarily influenced by its mixed financial performance, characterized by operational efficiency but challenged by revenue declines and liquidity concerns. The technical analysis indicates a bearish trend, and the valuation appears reasonable. These factors result in a conservative overall stock score.

West China Cement Business Overview & Revenue Model

Company Description

West China Cement Limited, an investment holding company, manufactures and sells cement and cement products in the People's Republic of China. It sells its products under the Yao Bai and Yaobaishuini names. The company's cement products are used in the construction of infrastructure projects, such as highways, railways, bridges, hydroelectric power stations, and water conservancy and water transfer projects, as well as housing and social infrastructure projects. It also engages in financial leasing and transportation businesses. The company is headquartered in Xi'an, the People's Republic of China.

How the Company Makes Money

West China Cement makes money through the production and sale of cement and related products. Its primary revenue stream comes from supplying cement to infrastructure projects, residential and commercial construction, and various industrial applications across China. The company's extensive distribution network ensures timely delivery to its customers, which includes builders, contractors, and construction companies. Additionally, West China Cement may engage in strategic partnerships or joint ventures to enhance its market presence and production capabilities, thereby contributing to its earnings. Key factors influencing its revenue include the demand for construction materials driven by China's economic growth, urban development policies, and investments in infrastructure projects.

West China Cement Financial Statement Overview

Summary

West China Cement demonstrates a mixed financial performance. The company's revenue and net income have declined, and there's an increase in leverage, posing potential risks. However, operational efficiency remains stable, and the asset base is strong. Negative cash flow raises liquidity concerns that need to be addressed for better financial stability.

Income Statement

The company's revenue has shown fluctuations over the years, with a decline from 2023 to 2024. The gross profit and net profit margins have been generally healthy, but there was a notable decrease in net income in 2024 compared to 2023, impacting the overall profitability. The EBIT and EBITDA margins remained stable, indicating consistent operational efficiency.

Balance Sheet

West China Cement maintains a solid equity base with a relatively stable equity ratio. However, the debt-to-equity ratio has increased, reflecting a higher leverage position, which could pose risks if not managed carefully. Return on equity has weakened due to lower net income, but the company still shows a strong asset base.

Cash Flow

The cash flow situation presents challenges, with a negative free cash flow and an absence of operating cash flow in 2024. The company previously relied on positive operating cash flows, but the recent figures highlight potential liquidity concerns. The company's ability to convert net income to cash has been inconsistent, affecting overall financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.34B	9.02B	8.49B	8.00B	7.13B
	Gross Profit
1.97B	2.46B	2.18B	2.38B	2.34B
	EBIT
1.13B	1.31B	2.07B	2.45B	2.14B
	EBITDA
2.33B	2.62B	3.22B	3.43B	2.91B
	Net Income Common Stockholders
626.18M	421.28M	1.21B	1.59B	1.56B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.16B	922.66M	1.42B	3.59B	751.46M
	Total Assets
36.29B	32.90B	30.24B	26.65B	18.91B
	Total Debt
11.56B	10.68B	9.53B	9.13B	3.71B
	Net Debt
10.40B	9.75B	8.11B	5.62B	3.06B
	Total Liabilities
22.47B	18.73B	16.85B	14.86B	8.38B
	Stockholders Equity
12.27B	12.28B	12.03B	11.31B	10.33B
Cash Flow		Free Cash Flow
-181.88M	-224.02M	-826.78M	-1.84B	-259.73M
	Operating Cash Flow
2.04B	2.70B	2.13B	1.96B	2.68B
	Investing Cash Flow
-1.88B	-3.35B	-3.28B	-3.52B	-3.12B
	Financing Cash Flow
85.46M	139.81M	-1.08B	4.45B	322.04M

West China Cement Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.39
• 50DMA: Negative
• 100DMA: Negative
• 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:2233, the sentiment is Negative. The current price of 1.39 is below the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.43, and above the 200-day MA of 1.34, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.53 is Neutral, neither overbought nor oversold. The STOCH value of 9.09 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2233	60 Neutral	$7.48B	11.00	5.10%	2.71%	-9.23%	40.52%
Sector *	51 Neutral	$2.02B	-1.19	-21.37%	3.64%	2.88%	-30.57%
AHCHF		$16.03B	13.76	4.26%	4.67%	―	―
0691	47 Neutral	HK$2.11B	―	-0.77%	―	-21.41%	84.29%
CJRCF		$1.46B	30.89	0.79%	1.56%	―	―
T18		€93.14M	―	-4.75%	―	―	―
6655	70 Outperform	HK$24.71B	6.93	8.32%	5.61%	-1.00%	-9.13%

West China Cement Corporate Events

West China Cement Announces Final Dividend Payment Details

West China Cement Limited has announced the exchange rate for the payment of its final dividend for the year ended December 31, 2024. The dividend, approved by shareholders, will be paid in Hong Kong dollars at a rate of HK$0.037 per ordinary share, based on the exchange rate of RMB1 to HK$1.0886, as of May 23, 2025. This announcement reflects the company’s commitment to providing returns to its shareholders and may influence its financial positioning and stakeholder relations.

The most recent analyst rating on (HK:2233) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on West China Cement stock, see the HK:2233 Stock Forecast page.

West China Cement Announces Final Dividend for 2024

West China Cement Limited has announced a final ordinary dividend of RMB 0.034 per share for the financial year ending December 31, 2024, with the payment to be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.0886. This announcement, which updates a previous statement, highlights the company’s commitment to returning value to shareholders and may impact investor perceptions positively, reinforcing its stable financial performance and shareholder-friendly policies.

The most recent analyst rating on (HK:2233) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on West China Cement stock, see the HK:2233 Stock Forecast page.

West China Cement Announces Board Changes

West China Cement Limited announced a change in its board of directors, with Mr. Fan Zhan resigning as a non-executive director due to work arrangement adjustments, and Mr. Wang Manbo being appointed as his replacement. Mr. Wang brings extensive experience in financial management and corporate governance from his previous roles at Anhui Conch Cement Company Limited, which may enhance the company’s strategic and operational capabilities.

The most recent analyst rating on (HK:2233) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on West China Cement stock, see the HK:2233 Stock Forecast page.

West China Cement Announces Successful AGM Resolutions

West China Cement Limited announced that all proposed resolutions at its Annual General Meeting held on May 23, 2025, were successfully passed by shareholders through a poll. Key resolutions included the adoption of the 2024 financial statements, the declaration of a final dividend, the re-election of several directors, and the re-appointment of Deloitte & Touche Tohmatsu as auditors. This outcome reflects strong shareholder support and positions the company to continue its strategic initiatives and maintain stability in its governance and financial practices.

The most recent analyst rating on (HK:2233) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on West China Cement stock, see the HK:2233 Stock Forecast page.

West China Cement Expands Stake in CILU with New Acquisition

West China Cement Limited has announced a discloseable transaction involving the acquisition of additional equity interests in Cimenterie de Lukala SA (CILU). The transaction, which involves WIH Cement, a wholly-owned subsidiary of West China Cement, acquiring 134,105 shares from IFC, represents 7.75% of CILU’s issued share capital for a consideration of USD6 million. This acquisition is part of a series of transactions aimed at consolidating West China Cement’s stake in CILU, aligning with its strategic growth objectives in the cement industry. The transactions are subject to regulatory requirements under the Hong Kong Stock Exchange’s Listing Rules, highlighting the company’s commitment to compliance and transparency.

West China Cement Announces 2025 AGM and Key Resolutions

West China Cement Limited has announced its Annual General Meeting scheduled for May 23, 2025, in Hong Kong. Key agenda items include the adoption of financial statements for 2024, declaration of a final dividend, re-election of directors, and authorization for directors to fix remuneration. Additionally, the company seeks approval to allot and issue additional shares, which could impact its capital structure and shareholder value.

West China Cement Projects Significant Profit Increase for 2024

West China Cement Limited has issued a positive profit alert, anticipating a 35% to 45% increase in profit for the year ended December 31, 2024, compared to the previous year. This expected profit growth is attributed to the absence of significant losses and penalties recorded in 2023, including a derecognition loss of a subsidiary and an administrative penalty for anti-trust law violations. Despite stable but low cement prices, the company’s revenue slightly decreased from RMB9,021 million in 2023 to RMB8,330 million in 2024.