West China Cement Ltd

West China Cement Ltd maintains a capital structure characterized by significant leverage, with long-term debt of 11.89 billion CNY against total equity of 12.66 billion CNY, resulting in a debt-to-equity ratio of 0.94. The company holds 766.30 million CNY in cash and equivalents, which is insufficient to cover its total liabilities of 22.58 billion CNY, leading to a negative net cash position. Liquidity is constrained, evidenced by a current ratio of 0.64, indicating that current assets do not fully cover current liabilities. The firm generates 1.85 billion CNY in operating cash flow, but this is offset by substantial capital expenditures of 2.99 billion CNY, resulting in negative free cash flow of -1.68 billion CNY.

Profitability metrics show a return on equity of 6.95% and a return on assets of 2.50%, reflecting modest efficiency in utilizing its asset base. The company reports a net income of 879.58 million CNY on revenues of 9.62 billion CNY, yielding a net margin of approximately 9.14%. Operating income stands at 1.93 billion CNY, suggesting that while the core business generates positive operating leverage, the bottom-line profitability is impacted by interest expenses and other non-operating items associated with its high debt load.

Revenue concentration and segment details are not explicitly provided in the available data, limiting the analysis of specific product or geographic exposures. However, the classification as a construction materials company implies exposure to the broader infrastructure and real estate cycles in China. The lack of detailed segment data prevents a granular assessment of revenue drivers, but the overall revenue scale of 9.62 billion CNY indicates a significant market presence within its operational region.

Growth trajectory analysis is limited by the absence of historical period data in the input. Without multi-year revenue or net income trends, it is not possible to assess the company's growth momentum or cyclicality from the provided snapshot. The current financial position reflects a single period's performance, highlighting the need for historical context to evaluate long-term trends.

Risk factors include medium liquidity risk due to the low current ratio and negative net cash position. The key flag of negative net cash after subtracting total debt underscores the company's reliance on external financing or operating cash flow to meet obligations. Dilution risk is assessed as low, with no immediate signs of share count expansion, as basic and diluted shares outstanding are identical at 5.46 billion.

Recent events and analyst sentiment indicate a neutral outlook, with a mean recommendation of 3.00 (Hold) and a mean price target of 2.10 CNY, representing a potential upside from the current market price of 1.49 CNY. The high price target of 3.10 CNY and low of 1.10 CNY suggest divergent views among analysts, but the consensus remains cautious. No specific filing, news, or transcript observations are provided to detail recent corporate actions or strategic shifts.

Net income surged 40.5% year-over-year to CNY 879.6 million in FY2026, demonstrating strong recent earnings growth.

Revenue grew 15.3% year-over-year to CNY 9.62 billion in FY2026, showing robust top-line expansion.

Cash conversion ratio of 2.1 exceeds the cohort median of 1.2, suggesting efficient working capital management.

Long-term debt increased to CNY 11.89 billion in FY2026, compounding high credit risk flags.

Revenue ¥9.62B, +15,3% YoY; Operating income +47,0% YoY.

• ▍Revenue ¥9.62B, +15,3% YoY
• ▍Operating income +47,0% YoY
• ▍Net income +40,5% YoY
• ▍Free cash flow −78,0% YoY
• ▍Net margin 9.1%

Revenue ¥8.34B, −7,5% YoY; Operating income +11,6% YoY.

• ▍Revenue ¥8.34B, −7,5% YoY
• ▍Operating income +11,6% YoY
• ▍Net income +48,6% YoY
• ▍Free cash flow +55,3% YoY
• ▍Net margin 7.5%

Revenue ¥9.02B, +6,3% YoY; Operating income −33,4% YoY.

• ▍Revenue ¥9.02B, +6,3% YoY
• ▍Operating income −33,4% YoY
• ▍Net income −65,3% YoY
• ▍Free cash flow −182,2% YoY
• ▍Net margin 4.7%

Revenue ¥8.49B, +6,1% YoY; Operating income −18,7% YoY.

• ▍Revenue ¥8.49B, +6,1% YoY
• ▍Operating income −18,7% YoY
• ▍Net income −23,4% YoY
• ▍Free cash flow +48,2% YoY
• ▍Net margin 14.3%

Revenue ¥8.00B; Operating income ¥2.17B.

• ▍Revenue ¥8.00B
• ▍Operating income ¥2.17B
• ▍Net margin 19.8%