West China Cement (2233) H2 2024 earnings summary

Executive summary

• Largest cement producer in Shaanxi with 39.3mt capacity and diversified operations in Africa and Uzbekistan.

• Revenue declined 7.5% year-over-year to RMB8,334.9 million, with cement sales volume down 3.0%.

• Profit attributable to shareholders rose 48.6% to RMB626.2 million; basic EPS up 49.4% to 11.5 cents.

• Dividend per share increased 47.8% to 3.4 cents.

• Healthy cash flows maintained through cost-control measures amid a challenging environment.

Financial highlights

• Revenue: RMB8,334.9 million (down 7.5% year-over-year); gross profit: RMB1,973.8 million (down 19.8%).

• EBITDA: RMB2,643.3 million (down 10.4%); EBITDA margin 31.7%.

• Net profit attributable to owners: RMB626.2 million (up 48.6%); basic EPS: 11.5 cents (up 49.4%).

• Total assets: RMB36,289.9 million (up 10.3%); net gearing: 65.3% (up 4.9 ppt year-over-year).

• Cash and cash equivalents at year-end were RMB2,541.4 million, up from RMB2,120.3 million.

Outlook and guidance

• Infrastructure-led demand in Shaanxi supported by major railway and expressway projects.

• Additional infrastructure projects in planning or under construction expected to sustain regional cement demand.

• International markets (Africa, Uzbekistan) expected to benefit from infrastructure demand and limited new capacity.

• The Group will focus on cost reduction, efficiency, and expanding overseas operations.

• New production lines in Mozambique and Uganda expected to commence in 2025–2026.