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West China Cement Ltd. (HK:2233)
:2233

West China Cement (2233) AI Stock Analysis

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HK

West China Cement

(OTC:2233)

Rating:67Neutral
Price Target:
HK$1.50
▼(-7.98%Downside)
West China Cement's stock is fairly rated with a score of 67, driven by stable technical indicators and reasonable valuation. However, financial performance raises concerns due to liquidity issues and increased leverage, emphasizing the need for risk management.

West China Cement (2233) vs. iShares MSCI Hong Kong ETF (EWH)

West China Cement Business Overview & Revenue Model

Company DescriptionWest China Cement Limited (2233) is a leading cement manufacturer in China, primarily serving the construction industry. The company is engaged in the production, distribution, and sale of cement products, focusing on the development of high-quality cement to meet the demands of infrastructure and real estate development. With a significant presence in the Shaanxi Province and expanding operations in other regions, West China Cement plays a crucial role in supporting China's ongoing urbanization and industrialization efforts.
How the Company Makes MoneyWest 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. Operational efficiency and a strong asset base are positives, but declines in revenue and net income, higher leverage, and negative cash flow raise concerns about financial health and stability.
Income Statement
65
Positive
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
70
Positive
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.34B9.02B8.49B8.00B7.13B
Gross Profit1.97B2.46B2.18B2.38B2.34B
EBITDA2.33B2.62B3.22B3.43B2.91B
Net Income626.18M421.28M1.21B1.59B1.56B
Balance Sheet
Total Assets36.29B32.90B30.24B26.65B18.91B
Cash, Cash Equivalents and Short-Term Investments1.16B922.66M1.42B3.59B751.46M
Total Debt11.56B10.68B9.53B9.13B3.71B
Total Liabilities22.47B18.73B16.85B14.86B8.38B
Stockholders Equity12.27B12.28B12.03B11.31B10.33B
Cash Flow
Free Cash Flow-181.88M-224.02M-826.78M-1.84B-259.73M
Operating Cash Flow2.04B2.70B2.13B1.96B2.68B
Investing Cash Flow-1.88B-3.35B-3.28B-3.52B-3.12B
Financing Cash Flow85.46M139.81M-1.08B4.45B322.04M

West China Cement Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.63
Price Trends
50DMA
1.44
Positive
100DMA
1.47
Positive
200DMA
1.39
Positive
Market Momentum
MACD
0.05
Negative
RSI
72.86
Negative
STOCH
89.03
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2233, the sentiment is Positive. The current price of 1.63 is above the 20-day moving average (MA) of 1.42, above the 50-day MA of 1.44, and above the 200-day MA of 1.39, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 72.86 is Negative, neither overbought nor oversold. The STOCH value of 89.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2233.

West China Cement Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
HK$25.41B7.478.32%5.20%-1.00%-9.13%
75
Outperform
$124.59B12.784.26%3.67%-36.59%
67
Neutral
$8.85B13.015.10%2.27%-9.23%40.52%
58
Neutral
HK$17.25B4.63-6.43%5.11%-3.18%-62.89%
50
Neutral
$12.64B33.770.79%1.10%
49
Neutral
HK$2.13B-0.77%-21.41%84.29%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2233
West China Cement
1.63
0.55
50.79%
HK:6655
Huaxin Cement Co., Ltd. Class H
9.52
2.36
32.96%
HK:1313
China Resources Cement Holdings
1.81
0.16
9.96%
HK:0691
China Shanshui Cement Group
0.49
-0.12
-19.67%
HK:0914
Anhui Conch Cement Company
21.15
1.43
7.24%

West China Cement Corporate Events

West China Cement Announces Major Asset Disposals in Xinjiang
Jun 25, 2025

West China Cement Limited has announced major disposals and connected transactions involving the sale of companies and assets in Xinjiang. The transactions, which include multiple agreements with various purchasers, amount to a total consideration of RMB1.65 billion, subject to adjustments. These disposals are classified as major transactions under the Hong Kong Listing Rules, requiring shareholder approval. The transactions also involve connected parties, necessitating additional regulatory compliance. Upon completion, the company will no longer hold equity interests in the target companies, potentially impacting its operational focus and market positioning.

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 Payment Details
May 30, 2025

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
May 30, 2025

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
May 27, 2025

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
May 23, 2025

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
May 7, 2025

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
Apr 24, 2025

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.

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.Date of analysis: Jun 27, 2025