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

• Market Cap: HK$50.81B
• Dividend Yield: 4.82%
• Average Volume (3M): 7.55M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.81
• 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: 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: 66 Neutral
• Price Target: HK$21.50 ▲(16.09% Upside)

The score is driven mainly by mid-range financial quality: profitability has recovered but leverage has increased and cash conversion is weak. Offsetting this, technicals show a clear uptrend with healthy (not overbought) momentum, and valuation is supportive with a low-to-moderate P/E and strong dividend yield.

Positive Factors

Stable end-market demand

Core cement sales to construction and infrastructure create a durable, volume-driven revenue base. Long-cycle projects and recurring material needs provide predictable utilization and revenue visibility, supporting steady operating scale and planning over the medium term.

Margin recovery

A rebound in net margin to ~9.5% from ~7.1% reflects better pricing or cost control, boosting sustainable profitability. If maintained, higher margins improve cash generation capacity, enabling reinvestment, debt reduction or shareholder returns even through cyclical demand shifts.

Improving returns on equity

ROE rising to ~10.7% indicates more effective capital deployment and improving operating performance. Sustained ROE expansion enhances long-term shareholder value, signals better asset utilization, and supports financing flexibility for strategic initiatives without excessive equity issuance.

Negative Factors

Rising leverage

Leverage nearly doubling to ~0.86 reduces financial flexibility and raises refinancing and interest-rate risk. Elevated debt limits capacity to absorb downturns or fund growth internally, forcing trade-offs between capex, deleveraging and dividends over the medium term.

Weak cash conversion

Low cash conversion—OCF at ~32% of net income and FCF ~25%—constrains ability to pay down debt, sustain capex or maintain payouts. Year-over-year FCF decline and historical volatility reduce resilience to cycles and increase dependence on external financing for investments.

Margins remain below historical peaks

Profitability lagging 2020–2021 peaks suggests structural pricing pressure or higher input costs versus prior cycles. Persistent margin gaps limit long-term free cash generation and make earnings more sensitive to volume swings, requiring sustained efficiency gains or stronger pricing power.

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

Modest TTM revenue growth (+3.93%) and improved net margin (~9.5% vs ~7.1% in 2024) support results, but profitability remains below 2020–2021 levels. Balance-sheet risk increased with debt-to-equity rising to ~0.86, and cash conversion is weak (operating cash flow ~32% of net income; free cash flow ~25%) with FCF down YoY (-12.4%).

Income Statement

TTM (Trailing-Twelve-Months) revenue is up modestly (+3.93%), with profitability rebounding versus 2024 as net margin improved to ~9.5% (from ~7.1%). That said, margins remain well below the 2020–2021 peak period (when gross and net margins were materially higher), pointing to a less favorable pricing/cost backdrop than earlier years. Overall: stable top line with a moderate profitability recovery, but still a step down from historical highs.

Balance Sheet

Leverage has moved higher: debt-to-equity is ~0.86 in TTM (Trailing-Twelve-Months), up sharply from 2024 (~0.44), reducing balance-sheet flexibility. Equity returns are positive but mid-range (ROE ~10.7% TTM vs ~8.0% in 2024), still well below 2020–2021 levels. Overall: improving returns, but the rapid increase in debt is a key risk factor.

Cash Flow

Cash generation is positive but not particularly strong versus earnings: TTM (Trailing-Twelve-Months) operating cash flow covers only ~32% of net income and free cash flow is ~25% of net income, suggesting weaker cash conversion. Free cash flow is also down year over year (TTM growth about -12.4%), and the multi-year record includes volatility (including negative free cash flow in 2022). Overall: positive free cash flow, but consistency and cash conversion remain the main weaknesses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.53B	34.22B	33.76B	30.47B	32.46B	29.36B
Gross Profit	9.89B	8.45B	8.88B	7.99B	11.07B	11.92B
EBITDA	6.15B	8.63B	8.65B	7.07B	9.89B	9.64B
Net Income	3.28B	2.42B	2.76B	2.70B	5.36B	5.63B
Balance Sheet
Total Assets	78.53B	69.51B	68.80B	64.24B	52.55B	43.93B
Cash, Cash Equivalents and Short-Term Investments	6.85B	6.84B	5.85B	7.08B	9.55B	9.65B
Total Debt	27.30B	13.32B	18.50B	17.34B	10.49B	7.95B
Total Liabilities	41.79B	34.61B	35.51B	33.40B	23.17B	18.19B
Stockholders Equity	31.57B	30.29B	28.93B	27.45B	26.73B	23.57B
Cash Flow
Free Cash Flow	1.45B	1.44B	1.39B	-3.15B	1.37B	4.82B
Operating Cash Flow	3.25B	5.98B	6.24B	4.57B	7.59B	8.41B
Investing Cash Flow	-8.91B	-3.67B	-6.45B	-8.38B	-6.79B	-5.01B
Financing Cash Flow	4.15B	-1.47B	-951.75M	1.77B	-632.25M	187.69M

Huaxin Cement Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 18.52 is below the 20-day moving average (MA) of 18.92, above the 50-day MA of 17.98, and above the 200-day MA of 13.65, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 48.41 is Neutral, neither overbought nor oversold. The STOCH value of 50.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	66 Neutral	HK$50.81B	10.84	10.68%	4.82%	0.40%	62.35%
0914	65 Neutral	HK$141.87B	13.19	4.59%	4.59%	-28.50%	23.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2233	60 Neutral	HK$20.48B	19.26	7.74%	1.29%	20.56%	254.64%
0691	48 Neutral	HK$2.57B	16.67	0.80%	―	-14.85%	―
1252	48 Neutral	HK$801.65M	2.19	2.15%	―	0.18%	―
1313	45 Neutral	HK$11.94B	47.63	0.51%	1.52%	―	―

Huaxin Cement Co., Ltd. Class H Corporate Events

Huaxin Building Materials Forecasts Double-Digit Profit Growth for 2025 on Overseas Expansion

Huaxin Building Materials Group has issued a 2025 results forecast indicating that net profit attributable to shareholders is expected to rise to between RMB2.7 billion and RMB2.95 billion, an increase of 11.6% to 21.9% year on year. Net profit excluding non-recurring items is projected at RMB2.58 billion to RMB2.76 billion, up 45% to 55% from the prior year, highlighting a substantial improvement in underlying earnings quality. Management attributes the stronger performance primarily to the continued expansion and contribution of its overseas operations and a recovery in unit profitability of major products, aided by lower fuel costs and ongoing cost-reduction and efficiency initiatives, though the domestic market remains intensely competitive; the company also stressed that the figures are based on unaudited preliminary accounting and urged investors to consider related risks.

The most recent analyst rating on (HK:6655) stock is a Buy with a HK$22.50 price target. To see the full list of analyst forecasts on Huaxin Cement Co., Ltd. Class H stock, see the HK:6655 Stock Forecast page.

Huaxin Building Materials Wins Shareholder Approval at Fifth 2025 EGM

Huaxin Building Materials Group Co., Ltd. announced that its Fifth Extraordinary General Meeting of 2025 was held on 30 December 2025 in Wuhan, where shareholders voted by poll and passed the sole resolution set out in the meeting notice without any amendments. All voting shares, other than a small tranche of repurchased A shares, were eligible to participate, with no shareholders required to abstain or indicating opposition in advance, underscoring broad investor support and procedural compliance for the company’s corporate decision-making.

The most recent analyst rating on (HK:6655) stock is a Buy with a HK$20.50 price target. To see the full list of analyst forecasts on Huaxin Cement Co., Ltd. Class H stock, see the HK:6655 Stock Forecast page.

Huaxin Cement Announces Fifth Extraordinary General Meeting

Huaxin Cement Co., Ltd. has announced the convening of its Fifth Extraordinary General Meeting (EGM) on December 30, 2025. The meeting will address a special resolution proposing the cancellation of the Board of Supervisors and amendments to certain articles of the Articles of Association. This move could potentially streamline the company’s governance structure, impacting its operational efficiency and stakeholder engagement.

The most recent analyst rating on (HK:6655) stock is a Buy with a HK$20.50 price target. To see the full list of analyst forecasts on Huaxin Cement Co., Ltd. Class H stock, see the HK:6655 Stock Forecast page.

Huaxin Building Materials Announces Governance Restructuring

Huaxin Building Materials Group Co., Ltd. has announced the cancellation of its Board of Supervisors, with the responsibilities being transferred to the Board of Directors’ Audit Committee. This decision aligns with the Company Law of China and other relevant regulations, aiming to streamline governance. The company also plans to amend its Articles of Association to reflect these changes, subject to approval at an extraordinary general meeting. This move is expected to enhance operational efficiency and governance structure, potentially impacting stakeholders by altering oversight mechanisms.

The most recent analyst rating on (HK:6655) stock is a Buy with a HK$20.50 price target. To see the full list of analyst forecasts on Huaxin Cement Co., Ltd. Class H stock, see the HK:6655 Stock Forecast page.

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.

The most recent analyst rating on (HK:6655) stock is a Buy with a HK$20.50 price target. To see the full list of analyst forecasts on Huaxin Cement Co., Ltd. Class H stock, see the HK:6655 Stock Forecast page.

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.

The most recent analyst rating on (HK:6655) stock is a Buy with a HK$20.50 price target. To see the full list of analyst forecasts on Huaxin Cement Co., Ltd. Class H stock, see the HK:6655 Stock Forecast page.

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.

The most recent analyst rating on (HK:6655) stock is a Buy with a HK$20.50 price target. To see the full list of analyst forecasts on Huaxin Cement Co., Ltd. Class H stock, see the HK:6655 Stock Forecast page.

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.

The most recent analyst rating on (HK:6655) stock is a Buy with a HK$20.50 price target. To see the full list of analyst forecasts on Huaxin Cement Co., Ltd. Class H stock, see the HK:6655 Stock Forecast page.

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.

The most recent analyst rating on (HK:6655) stock is a Buy with a HK$20.50 price target. To see the full list of analyst forecasts on Huaxin Cement Co., Ltd. Class H stock, see the HK:6655 Stock Forecast page.