West China Cement (2233) H1 2025 earnings summary

Executive summary

• Revenue rose 46.4% year-over-year to RMB5,418.3 million for H1 2025, driven by strong overseas growth and improved supply discipline in China.

• Net profit surged 93.4% to RMB748.3 million, with basic EPS up 93% to 13.7 cents.

• Overseas operations contributed 43% of revenue and 58% of gross profit, validating the international expansion strategy.

• Major asset restructuring included the acquisition of the CILU plant in DRC and the sale of Xinjiang assets, focusing on high-growth overseas markets.

• Cement and clinker sales volume increased 23.7% year-over-year to 10.82 million tons.

Financial highlights

• Gross profit rose 67.2% to RMB1,627.0 million; gross margin improved to 30.0% from 26.3% year-over-year.

• EBITDA reached RMB1,846.7 million, up 43.8% year-over-year; EBITDA margin was 34.1%.

• Net gearing increased to 69.0% (from 65.3% at YE24); net debt/EBITDA improved to 2.7x (from 3.4x).

• Net assets per share: 262 cents (up 3.6% YoY).

• Cash and equivalents at period end: RMB1.8bn; unused banking facilities of RMB2,031.0 million.

Outlook and guidance

• Focus on liability management and repaying part of US$600m senior notes due July 2026, using Xinjiang disposal proceeds.

• Overseas expansion to continue, with new capacity in Uganda and Mozambique and completion of DRC CILU acquisition expected in 2025-2026.

• African GDP growth and infrastructure demand expected to support further volume and revenue growth.

• Expect continued supply-side discipline and stable demand from infrastructure projects in Shaanxi to support profitability.