Huaxin Cement Co., Ltd. Class H (6655) AI Stock Analysis

• Market Cap: HK$47.37B
• Dividend Yield: 5.01%
• Average Volume (3M): 7.55M
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.82
• Revenue Growth: 0.40%
• EPS Growth: 62.35%
• Country: HK
• Employees: 20,174
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.44
• Shares Outstanding: 734,720,000
• 10 Day Avg. Volume: 9,574,383
• 30 Day Avg. Volume: 7,548,905
• PEG Ratio: -0.52
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 10.62
• 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: HK$19.83
• Price Target Upside: 13.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: HK$20.50 ▲(17.48% Upside)

Huaxin Cement Co., Ltd. demonstrates strong technical indicators and an attractive valuation, contributing significantly to its overall score. While financial performance is stable, concerns about declining net profit margins and fluctuating cash flow growth slightly temper the outlook.

Positive Factors

Diversified Revenue Model

A diversified revenue model, including strategic partnerships and government contracts, provides stability and reduces dependency on a single revenue stream, enhancing long-term resilience.

Operational Efficiency

High operational margins indicate efficient management and cost control, which can sustain profitability even amidst fluctuating raw material prices.

Balanced Capital Structure

A balanced capital structure with manageable leverage supports financial stability, providing the company with flexibility to invest in growth opportunities.

Negative Factors

Declining Net Profit Margins

Decreasing net profit margins suggest rising costs or inefficiencies, which could impact long-term profitability if not addressed.

Fluctuating Free Cash Flow

Volatility in free cash flow indicates potential challenges in managing capital expenditures, which could affect the company's ability to fund new projects or return capital to shareholders.

Revenue Decline

A decline in revenue, even if slight, can signal challenges in market demand or competitive pressures, potentially impacting future growth prospects.

Huaxin Cement Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Huaxin Cement Co., Ltd., together with its subsidiaries, manufactures and sells cement in China and internationally. It also provides ready-mixed concrete, aggregates, clinker, cement based new building materials, and other building materials, as well as cement technical services. In addition, the company is involved in the research, manufacture, installation, and maintenance of cement equipment; and cement import and export trade activities. Further, it engages in the cement kiln co-processing of wastes; engineering, procurement, and construction (EPC) of cement projects; equipment and project contracting regarding the cement kiln co-processing technology; and other related businesses. The company was founded in 1907 and is headquartered in Wuhan, China.

How the Company Makes Money

Huaxin Cement generates revenue primarily through the sale of its cement products to construction companies, contractors, and distributors. The company benefits from a diversified revenue model that includes not only the direct sale of cement but also ancillary products such as concrete and aggregates. Key revenue streams include bulk sales to large-scale construction projects as well as retail sales through distribution channels. Additionally, Huaxin Cement has entered into strategic partnerships with various construction firms and government contracts, enhancing its market reach and securing stable revenue sources. The company also invests in production efficiency and cost control measures, which help maintain profitability amidst fluctuating raw material prices.

Huaxin Cement Co., Ltd. Class H Financial Statement Overview

Summary

Huaxin Cement Co., Ltd. exhibits stable financial performance with strong operational margins and a balanced capital structure. However, declining net profit margins and fluctuating free cash flow growth are potential concerns.

Income Statement

Huaxin Cement Co., Ltd. shows a stable financial performance with a consistent gross profit margin of around 25% across the periods. Despite a slight revenue decline in the TTM period, the company demonstrates strong EBIT and EBITDA margins at 13% and 17%, respectively, indicating operational efficiency. However, the net profit margin has decreased over time, suggesting increased costs or expenses impacting net income.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of approximately 0.48, indicating a balanced capital structure. The equity ratio is about 43%, showcasing strong asset backing by equity. Return on equity is somewhat moderate at around 8%, implying room for improving shareholder returns. Overall, the balance sheet is stable with manageable leverage.

Cash Flow

Cash flow analysis reveals a positive operating cash flow to net income ratio, signifying efficient cash generation from operations. The free cash flow growth has been fluctuating, highlighting potential volatility in capital expenditures. The free cash flow to net income ratio is positive, but relatively low, suggesting limited free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.36B	34.22B	33.76B	30.47B	32.46B	29.36B
Gross Profit	10.15B	8.45B	8.88B	7.99B	11.07B	11.92B
EBITDA	6.30B	8.63B	8.65B	7.07B	9.89B	9.64B
Net Income	3.37B	2.42B	2.76B	2.70B	5.36B	5.63B
Balance Sheet
Total Assets	85.83B	69.51B	68.80B	64.24B	52.55B	43.93B
Cash, Cash Equivalents and Short-Term Investments	7.49B	6.84B	5.85B	7.08B	9.55B	9.65B
Total Debt	29.84B	13.32B	18.50B	17.34B	10.49B	7.95B
Total Liabilities	45.68B	34.61B	35.51B	33.40B	23.17B	18.19B
Stockholders Equity	34.51B	30.29B	28.93B	27.45B	26.73B	23.57B
Cash Flow
Free Cash Flow	1.54B	1.44B	1.39B	-3.15B	1.37B	4.82B
Operating Cash Flow	3.40B	5.98B	6.24B	4.57B	7.59B	8.41B
Investing Cash Flow	-9.36B	-3.67B	-6.45B	-8.38B	-6.79B	-5.01B
Financing Cash Flow	4.49B	-1.47B	-951.75M	1.77B	-632.25M	187.69M

Huaxin Cement Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6655, the sentiment is Positive. The current price of 17.45 is above the 20-day moving average (MA) of 17.15, above the 50-day MA of 17.25, and above the 200-day MA of 12.26, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 75.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6655.

Huaxin Cement Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6655	77 Outperform	HK$47.37B	10.16	10.68%	5.01%	0.40%	62.35%
0914	65 Neutral	HK$126.62B	11.91	4.59%	4.63%	-28.50%	23.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2233	60 Neutral	HK$15.90B	14.95	7.74%	1.27%	20.56%	254.64%
0691	48 Neutral	HK$2.96B	19.21	0.80%	―	-14.85%	―
1252	48 Neutral	HK$878.74M	2.41	2.15%	―	0.18%	―
1313	45 Neutral	HK$10.89B	43.45	0.51%	1.54%	―	―

Huaxin Cement Co., Ltd. Class H Corporate Events

Huaxin Cement Rebrands to Huaxin Building Materials Group

Huaxin Building Materials Group Co., Ltd. has announced a change in its company name and stock short name, effective December 4, 2025. The change, which includes a new company logo, reflects the company’s broader focus on building materials beyond cement. This rebranding is not expected to affect shareholder rights, and existing share certificates will remain valid.

Huaxin Cement Declares Multi-Currency Dividend for 2025

Huaxin Cement Co., Ltd. has announced a cash dividend for the first three quarters of 2025, declaring RMB 0.34 per share. The dividend will be paid in multiple currencies, including HKD and USD, with specific exchange rates provided. The announcement includes details on withholding tax rates for different types of shareholders, highlighting the company’s compliance with tax obligations for non-resident and resident shareholders. This dividend declaration reflects Huaxin Cement’s financial performance and commitment to returning value to its shareholders, potentially impacting its market positioning and investor relations.

Huaxin Cement Announces Dividend for First Three Quarters of 2025

Huaxin Cement Co., Ltd. has announced a dividend distribution for the first three quarters ended September 30, 2025. Shareholders will receive a cash dividend of RMB 0.34 per H share, payable in Hong Kong dollars or US dollars. The dividend will be distributed to H-shareholders listed on the register by November 20, 2025, with payments expected on December 24, 2025. This move reflects the company’s commitment to returning value to its shareholders and may enhance its attractiveness to potential investors.

Huaxin Cement’s 2025 EGM Resolutions Passed Successfully

Huaxin Cement Co., Ltd. announced the successful conclusion of its Fourth Extraordinary General Meeting in 2025, where all proposed resolutions were passed without amendments. The meeting, held in Wuhan, China, saw participation from shareholders, with specific abstentions related to the 2025 Restricted A Share Incentive Scheme. This outcome reflects the company’s stable governance and shareholder alignment, potentially strengthening its market position and stakeholder confidence.

Huaxin Cement Rebrands to Huaxin Building Materials Group

Huaxin Building Materials Group Co., Ltd. has officially changed its name from Huaxin Cement Co., Ltd. to reflect a broader focus on building materials. The company completed the necessary registration procedures for the name change and obtained a new business license. This change signifies a strategic shift in the company’s market positioning, potentially impacting its operations and stakeholders. Further announcements regarding the registration of the new name and changes to the stock short name for trading on the Hong Kong Stock Exchange will be made in due course.

Huaxin Cement Completes Share Repurchase Plan

Huaxin Cement Co., Ltd. has completed a share repurchase plan, acquiring 2,578,000 A shares, which accounts for 0.12% of the company’s total shares, at an average price of RMB 19.00 per share. The repurchase, funded entirely by the company’s self-owned funds, is intended for a share incentive scheme and is not expected to have a material impact on the company’s operations, financial status, or future development.

Huaxin Cement Announces 2025 Q3 Profit Distribution Proposal

Huaxin Cement Co., Ltd. announced a profit distribution proposal for the first three quarters of 2025, reporting a net profit of RMB 2,003,800,231 attributable to shareholders. The board proposes a cash dividend of RMB 0.34 per share, totaling RMB 706,021,373, representing 35.23% of the net profit after consolidation. The distribution plan is subject to approval at the company’s Fourth Extraordinary General Meeting in 2025, and dividends will be paid in RMB, HKD, or USD depending on the shareholder’s location.

Huaxin Cement Announces Dividend for Q1-Q3 2025

Huaxin Cement Co., Ltd. has announced a cash dividend of RMB 0.34 per share for the first three quarters of 2025, with a payment date set for December 24, 2025. The announcement includes details on currency options and withholding tax rates for different types of shareholders, impacting both non-resident enterprises and mainland individual investors.

Huaxin Cement Releases Q3 2025 Financial Report

Huaxin Cement Co., Ltd. has announced the publication of its unaudited third quarterly report for the period from July 1, 2025, to September 30, 2025, in accordance with Chinese accounting standards. The report, which will be available in newspapers circulating in the PRC on October 25, 2025, confirms the accuracy and completeness of the financial statements, as warranted by the company’s management.

Huaxin Cement’s 2025 EGM Resolutions Passed Unanimously

Huaxin Cement Co., Ltd. successfully held its Third Extraordinary General Meeting in 2025, where all proposed resolutions were passed without amendments. The meeting saw full participation from shareholders, with no restrictions or abstentions on voting, indicating strong support for the company’s strategic decisions.

Huaxin Cement Announces 2025 EGM and Dividend Proposal

Huaxin Cement Co., Ltd. has announced the convening of its Fourth Extraordinary General Meeting in 2025 to discuss and approve several resolutions, including a profit distribution proposal and the adoption of a Restricted A Share Incentive Scheme. The company plans to distribute a cash dividend of 0.34 yuan per share for the first three quarters of 2025, amounting to a total of 706,021,373 yuan, subject to approval at the EGM. This move is expected to impact shareholders, particularly overseas non-resident enterprise shareholders, due to tax withholding obligations.

Huaxin Cement Declares Dividend for First Three Quarters of 2025

Huaxin Cement Co., Ltd. announced a cash dividend of RMB 0.34 per share for the first three quarters of 2025, with shareholders having the option to receive the dividend in different currencies. The ex-dividend date is set for November 14, 2025, and the payment date is December 24, 2025. The announcement reflects the company’s stable financial performance and commitment to returning value to shareholders, despite withholding tax implications for different types of shareholders.

Huaxin Cement Schedules Board Meeting to Review Quarterly Results

Huaxin Cement Co., Ltd. has announced that its board of directors will hold a meeting on October 24, 2025, to consider and approve the company’s quarterly results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

Huaxin Cement Terminates Overseas Subsidiary Spin-Off Plan

Huaxin Cement Co., Ltd. has announced the termination of its plan to spin off its overseas subsidiary for listing on an overseas stock exchange. This decision was made after thorough consultations and assessments revealed that the proposed spin-off would take longer than anticipated and might not comply with relevant regulations if the subsidiary’s net profit exceeded certain thresholds. The company assures that this termination will not adversely affect its production, business activities, financial condition, or strategic plans.

Huaxin Cement Announces A-Share Repurchase Plan

Huaxin Cement Co., Ltd. has announced its intention to repurchase its A-shares through a centralized price bidding process, allocating between RMB 32.25 million and RMB 64.5 million from its internal resources for this purpose. The repurchase, aimed at share incentives, faces risks such as securing necessary funds, potential price ceiling issues, and approval of the share incentive plan, which could impact the company’s operational and market positioning.

Huaxin Cement Proposes Name Change to Reflect Building Materials Focus

Huaxin Cement Co., Ltd. has announced a proposal to change its company name to Huaxin Building Materials Group Co., Ltd. This change aims to better reflect the company’s focus on building materials as per regulatory requirements in China. The name change is subject to shareholder approval and the issuance of a certificate of incorporation by the Hong Kong Companies Registrar. The company will also amend certain articles of association to align with the new name and recent listing rule amendments. The stock codes for A-shares and H-shares will remain unchanged.

Huaxin Cement Unveils 2025 A-Share Incentive Scheme

Huaxin Cement Co., Ltd. has announced the draft of its 2025 A-Share Restricted Share Incentive Scheme, which involves granting up to 2.578 million restricted shares to participants, representing 0.124% of the company’s total share capital. This scheme, which aims to repurchase A-share common stocks from the secondary market, is expected to align the interests of employees with the company’s performance, potentially enhancing productivity and stakeholder value.

Huaxin Cement Schedules EGM to Discuss Key Resolutions

Huaxin Cement Co., Ltd. has announced its Third Extraordinary General Meeting (EGM) scheduled for October 24, 2025, where shareholders will consider resolutions including a change in the company name and amendments to the Articles of Association. This meeting is significant as it could impact the company’s branding and governance structure, potentially influencing its market positioning and stakeholder relations.