2010 Final Results for West China Cement (LON:WCC) can be seen from the Hong Kong Stock Exchange here. PLEASE NOTE that results are presented in RMB but the share price is quoted in HK Dollars
Highlights:
"Revenue increased by approximately 95.2%"
"Gross profit increased by approximately 86.7%"
"Basic earnings per share, after being adjusted for the exceptional charge of losses on warrant redemption of RMB168.5 million for the year ended December 31, 2009 and shares delisting and listing expenses of RMB 65.7 million for the year ended December 31, 2010, increased by approximately 80.0% from RMB0.155 per share to RMB0.273 per share, reflecting strong revenue and profit growth"
"Proposed declaration of final dividend of RMB1.53 cents per ordinary share for the year ended December 31, 2010. [This is completely unexpected but is in line with other Chinese cement companies and presumably will increase demand for the stock albeit the current yield is not significant]"
"RMB 0.273 per share is approximately 32.2c HKD"
At a current share price of 280c HKD the historic PE is 8.7. The company has added capacity during the year. Some of the capacity started during the year so there is a known increase in capacity for the current year. In addition the company has recently raised $US400m specifically to increase capacity.
The results talk about expanding outside the current province of Shaanxi into other provinces. Specifically there are concrete plans to expand into Xinjiang province. Other opportunities will be pursued where available. In particular it is worth noting:
"We plan to achieve a total production capacity of approximately 18 million tons per annum in Shaanxi by the first half of 2012."
and
".....the Group has achieved total cement sales of 9.9 million tons for the year under review. Gross profit and net profit margins are substantially higher than our peers."
The PE is significantly lower than their peers. Recent posts on the advfn thread give lots of useful information.
There is an Investor Presentation in London on March 14th. Contact the company for details.
