Anhui Conch Cement Co Ltd

Anhui Conch Cement maintains a conservative capital structure with a debt-to-equity ratio of 0.14 and a current ratio of 3.19, indicating strong short-term liquidity coverage. The company holds total equity of 192.4 billion CNY against total liabilities of 63.6 billion CNY, with long-term debt standing at 27.8 billion CNY. Despite the strong balance sheet, the risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt, suggesting that cash reserves are insufficient to fully cover all debt obligations without operating cash flow support. Operating cash flow stands at 15.9 billion CNY, providing a robust buffer for debt servicing and operational needs.

Profitability metrics reflect a compressed margin environment, with a return on equity of 4.4% and a return on assets of 3.3%. The company trades at a price-to-earnings ratio of 2.62 and a price-to-book ratio of 0.12, signaling significant market skepticism regarding future earnings sustainability or asset quality. The EV/EBITDA multiple of 4.64 and EV/Revenue of 0.61 further underscore the depressed valuation relative to historical norms for the sector. Gross profit of 18.97 billion CNY on revenue of 82.53 billion CNY yields a gross margin of approximately 23%, while operating income of 10.78 billion CNY indicates an operating margin of roughly 13%.

Analysts project 31.4% upside to a mean price target of 26.15, reflecting strong buy consensus among 13 analysts.

Free cash flow surged 1,238.6% year-over-year to 2.04 billion CNY, demonstrating significant improvement in cash generation.

Operating margin of 13.1% exceeds the 12.0% cohort median, indicating superior operational efficiency relative to peers.

Debt-to-equity ratio of 0.14 is well below the 0.33 cohort median, suggesting a conservative leverage profile.

Long-term debt increased to 30.24 billion CNY in 2025, rising from 12.26 billion CNY in 2022.

The company faces medium liquidity and credit risks, posing potential challenges to financial stability.

Revenue ¥82.53B, −9,3% YoY; Operating income −0,9% YoY.

• ▍Revenue ¥82.53B, −9,3% YoY
• ▍Operating income −0,9% YoY
• ▍Net income +5,1% YoY
• ▍Free cash flow +1 238,6% YoY
• ▍Net margin 10.3%

Revenue ¥91.03B, −35,5% YoY; Operating income −25,0% YoY.

• ▍Revenue ¥91.03B, −35,5% YoY
• ▍Operating income −25,0% YoY
• ▍Net income −24,6% YoY
• ▍Free cash flow +104,1% YoY
• ▍Net margin 8.8%

Revenue ¥141.16B, +6,9% YoY; Operating income −27,9% YoY.

• ▍Revenue ¥141.16B, +6,9% YoY
• ▍Operating income −27,9% YoY
• ▍Net income −32,6% YoY
• ▍Free cash flow +77,2% YoY
• ▍Net margin 7.6%

Revenue ¥132.02B, −21,4% YoY; Operating income −54,1% YoY.

• ▍Revenue ¥132.02B, −21,4% YoY
• ▍Operating income −54,1% YoY
• ▍Net income −52,4% YoY
• ▍Free cash flow −217,4% YoY
• ▍Net margin 12.0%

Revenue ¥167.96B; Operating income ¥43.82B.

• ▍Revenue ¥167.96B
• ▍Operating income ¥43.82B
• ▍Net margin 19.8%