China's West China Cement H1 revenue falls on lower sales volumes

West China Cement

24/08/2026 15:35

Overview
China cement producer's interim revenue fell 16.5% yr/yr for six months ended June 2026
Net income attributable to owners dropped 49.4% yr/yr for the interim period
Gross profit margin rose to 31.0% from 28.6% despite lower sales

Outlook
Dugongo Nampula Plant aims to complete construction in Mozambique in Q1 2027
Zimbabwe cement plant is due for completion in Q2 2027
Tanzania's second grinding line is due for completion in Q3 2027

Result Drivers
LOWER SALES VOLUMES - Total cement and clinker sales volume declined 2.6% yr/yr, with cement sales volume down 10.6%
GROSS MARGIN IMPROVEMENT - Gross profit margin rose to 31.0% from 28.6% despite lower sales

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 4.53 bln
 
H1 Net Income Attributable
 
RMB 378.8 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", no "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the construction materials peer group is "buy."
Wall Street's median 12-month price target for West China Cement Ltd is HK$2.10, about 15.7% above its August 24 closing price of HK$1.82
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Aug 21 - China's Jujiang Construction H1 swings to loss amid weak industry demand
Aug 21 - Zhong An Group's H1 revenue plunges, posts net loss on lower property deliveries, sale prices

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)