West China Cement Ltd. (2233) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Huaxin Cement Co., Ltd.

China Shanshui Cement Group Ltd.

China Resources Building Materials Technology Holdings Ltd.

Asia Cement (China) Holdings Corp.

China National Building Material Co., Ltd.

West China Cement Ltd.

BBMG Corp.

Dongwu Cement International Ltd.

Anhui Conch Cement Co., Ltd.

Zhixin Group Holding Ltd.

China Tianrui Group Cement Co., Ltd.

Why is West China Cement Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -3.57% of over the last 5 years
The company is Net-Debt Free

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD 2,954.19 MM
DEBT-EQUITY RATIO (HY) Highest at 82.71 %
INTEREST COVERAGE RATIO(Q) Lowest at 199.27

With ROE of 9.51%, it has a Very Expensive valuation with a 0.93 Price to Book Value

Over the past year, while the stock has generated a return of 63.70%, its profits have risen by 115.3% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is West China Cement Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

West China Cement Ltd.

63.7%

1.83

58.04%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.11%

EBIT Growth (5y)

-3.57%

EBIT to Interest (avg)

6.78

Debt to EBITDA (avg)

3.51

Net Debt to Equity (avg)

0.76

Sales to Capital Employed (avg)

0.40

Tax Ratio

24.11%

Dividend Payout Ratio

31.69%

Pledged Shares

Institutional Holding

ROCE (avg)

9.27%

ROE (avg)

11.10%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.93

EV to EBIT

12.44

EV to EBITDA

9.85

EV to Capital Employed

0.96

EV to Sales

2.20

PEG Ratio

0.08

Dividend Yield

0.84%

ROCE (Latest)

7.70%

ROE (Latest)

9.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 210.39%

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 2,954.19 MM

DEBT-EQUITY RATIO (HY)

Highest at 82.71 %

INTEREST COVERAGE RATIO(Q)

Lowest at 199.27

RAW MATERIAL COST(Y)

Grown by 26.13% (YoY

CASH AND EQV(HY)

Lowest at HKD 1,652.61 MM

INTEREST(Q)

Highest at HKD 363.27 MM

OPERATING PROFIT(Q)

Lowest at HKD 723.91 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.73 %

NET PROFIT(Q)

Fallen at -59.45%

Here's what is working for West China Cement Ltd.

Dividend Payout Ratio

Highest at 210.39%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for West China Cement Ltd.

Operating Cash Flow

Lowest at HKD 2,954.19 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Interest Coverage Ratio

Lowest at 199.27

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 82.71 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at HKD 363.27 MM

in the last five periods and Increased by 28.35% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Operating Profit

Lowest at HKD 723.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 15.73 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Fallen at -59.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Cash and Eqv

Lowest at HKD 1,652.61 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 26.13% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales