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West China Cement Ltd
HKEX:2233

Watchlist Manager
West China Cement Ltd
HKEX:2233
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Price: 2.93 HKD 1.03% Market Closed
Market Cap: HK$16B

Operating Margin

18.3%
Current
Improving
by 1.6%
vs 3-y average of 16.7%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin
18.3%
=
Operating Income
¥1.8B
/
Revenue
¥10.1B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin
18.3%
=
Operating Income
HK$1.8B
/
Revenue
¥10.1B

Peer Comparison

Country Company Market Cap Operating
Margin
CN
West China Cement Ltd
HKEX:2233
15.8B HKD
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IE
CRH PLC
NYSE:CRH
85.2B USD
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CH
Holcim AG
SIX:HOLN
41.8B CHF
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DE
HeidelbergCement AG
XETRA:HEI
39B EUR
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US
Vulcan Materials Co
NYSE:VMC
43.1B USD
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IN
UltraTech Cement Ltd
NSE:ULTRACEMCO
3.8T INR
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US
Martin Marietta Materials Inc
NYSE:MLM
42B USD
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US
Amrize AG
SIX:AMRZ
25.1B CHF
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DE
Heidelberg Materials AG
XMUN:HEI
25.7B EUR
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IN
Grasim Industries Ltd
NSE:GRASIM
2T INR
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CN
Anhui Conch Cement Co Ltd
SSE:600585
132.6B CNY
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Market Distribution

Higher than 85% of companies in China
Percentile
85th
Based on 8 544 companies
85th percentile
18.3%
Low
-409 046.1% — -1.4%
Typical Range
-1.4% — 10.3%
High
10.3% — 876.4%
Distribution Statistics
China
Min -409 046.1%
30th Percentile -1.4%
Median 4.2%
70th Percentile 10.3%
Max 876.4%

West China Cement Ltd
Glance View

West China Cement Ltd. operates as an integral player in China's vast construction landscape, propelled by the country's relentless urbanization and infrastructure development. Founded in 1991, the company has steadily carved out a significant presence in the cement production industry, concentrated mainly in the Shaanxi province. The burgeoning need for infrastructure, fueled by China's rapid economic expansion, has laid fertile ground for West China Cement to thrive. This growth is further bolstered by its dedication to leveraging advanced technology within its production processes, ensuring efficiency and quality that meet the demands of modern construction. The company employs a network of strategically located production facilities, which minimizes transportation costs and maximizes the availability of its products, reinforcing its competitive edge. The financial engine of West China Cement Ltd. is largely powered by the sale of its core product—cement. This essential building material finds its way into a plethora of applications, from public infrastructure projects like roads and bridges to residential and commercial buildings. The company generates revenue by not only selling finished cement but also engaging in the distribution and logistics involved in delivering this vital material to various construction sites. Moreover, West China Cement has cultivated strong relationships with local authorities and contractors, ensuring a steady pipeline of orders. This business model, coupled with strategic expansions into other developing regions within China, enables the company to capture a substantial market share in an industry characterized by its increasing demand and relatively stable pricing, which together create a robust revenue stream.

Intrinsic Value
5.89 HKD
Undervaluation 50%
Intrinsic Value
Price
W
What is Operating Margin?
Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.
How is Operating Margin calculated?

Operating Margin is calculated by dividing the Operating Income by the Revenue.

Operating Margin
18.3%
=
Operating Income
¥1.8B
/
Revenue
¥10.1B
What is West China Cement Ltd's current Operating Margin?

The current Operating Margin for West China Cement Ltd is 18.3%, which is above its 3-year median of 16.7%.

How has Operating Margin changed over time?

Over the last 3 years, West China Cement Ltd’s Operating Margin has decreased from 22.5% to 18.3%. During this period, it reached a low of 13.6% on Dec 31, 2024 and a high of 22.5% on Jun 30, 2022.

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