Epic : WCC

Last Results : http://www.investegate.co.uk/Article.aspx?id=200703270701277583T


The Company, which is headquartered in Xi'an the provincial capital of Shaanxi Province, operates three cement production plants in Pucheng, the first of which has been operational since 1977 and now have a combined production capacity of 1.5 million tonnes per annum. Two new lines are coming on line soon which will boost output by an additional 2 million tones. Some of this additional output will be seen in 2007 financial year, the rest in 2008 financial year.

The PRC Government is actively promoting the restructuring of the Chinese cement industry with a shift away from small-scale producers towards large, modern environmentally friendly production plants. This will benefit WCC are the smaller and more polluting plants are shut down and production at larger more efficient plans is ramped up, eg WCC.


Activities

The Group manufactures three types of cement, as well as clinker, a cement compound:

* Ordinary Portland Cement is a mixture of clinker, mineral admixtures (accounting for 6 to 15 per cent.) and gypsum, which is widely used in industrial and civil construction projects

* Flyash Portland Cement is a mixture of clinker, flyash and gypsum. The content of flyash by weight ranges from 20 per cent. to 40 per cent.depending on its intended use

* Composite Portland Cement is a mixture of clinker, at least two kinds of prescribed mineral admixtures and gypsum, which is widely used in industrial and civil construction projects

* Clinker is the base of the above mentioned products, the principal raw material of which is limestone. The Group does not intend to sell clinker as a separate product in the future

Supported by government tax breaks, and also geographically situated in a key area, with natural barriers to entry of others (eg logistics), they could offer a compelling growth story.

Quick fag packet calculations (and do not quote me on them !!) at around 130p might give a current year PER of just 7.5 times potential 18p EPS in 2007, and a forward PER of just 5 times potential 27p EPS in 2008. On those very quick potential estimated earnings figures, and given the company is generating cash, and has decent cash in the bank levels, WCC could be in for a decent re-rating.

I also like the fact they have not declared a dividend for this past year, even though their financial position is strong and strengthening further. They want the money for expansion, and I like it when companies do this and do not fall into the pay a quick dividend and then worry about working cap later.

For those that know China, Shaanxi province has not developed as fast as the east coast, as its middle China however middle China is now a focal point for growth and investment, so the demand in that area of China will be high for construction materials.

The dividend potential will be considered again at the next results, and that is something to look forward to. It reminds me very much of when I purchased ACHL in the 120s..and looks like it could follow the same course, and thats a doubling of the SP within a reasonable period of time.

There, I do not dislike all China plays. ;)

This comment I see from www.growthcompany.co.uk :

West China Cement expands

Companies: WCC

27/03/2007

AIM newcomer West China Cement has more than doubled pre-tax profits to 5.2 million and plans further expansion.

Headed by formidable founder and chief executive officer Jimin Zhang, West China boosted profits in 2006 on turnover 33 per cent ahead at 20.5 million, helped by buoyant demand in China for the company's 'dry-processed' cement, which is less environmentally damaging than traditionally produced cement. West China, which with state government encouragement is a dominant player in China's landlocked Shaanxi province, produced 1.47 millions tonnes of cement last year and hopes to lift that to 3.5 million tonnes in two years.

Chaired by ex-Tarmac boss Robert Robertson and with a board including South African niche financier Brett Miller, the company, which raised 20.5 million net with Insinger's 105p float in December, is increasing production with a new plant at Lantian, near the provincial capital of Xi'an. West China hopes eventually to take capacity to more than 5.5 million tonnes.

Jimin Zhang argues the company's position is strengthened by being close to the limestone deposits from which its raw material is drawn and to its key markets, as well as being bolstered by government tax breaks. Although electricity prices are set to rise five per cent a year, the company, which claims two years of coal stocks, is using some of its cash flow to invest in a process which it hopes will cut costs 25 per cent by re-using electricity.

West China says it also hopes to increase market share further as government-backed consolidation phases out more of the heavily polluting small producers which still account for a major chunk of China's cement industry. At 130.5p, valuing the company at 83 million, the shares should have further to go.

For those interested there is an write up on Proactive (Jan 07) about WCC as below :

http://www.proactiveinvestors.co.uk/articles/article.asp?WCC



And also the admission document is in the link below :

http://www.proactiveinvestors.co.uk/articles/pdfs/wcc-admissiondocument.pdf



.

It appears the IC is positive about WCC, stating the PER of times 8 makes it very attractive. (Insigner present price target is 220p)

I like WCC, its boring (selling cement) but repetitive business. The development of the central and western regions of China is like "organic growth" and is not going to be effected by global concerns like the east coast, its the natural progression of the money and developement spreading now through the rest of China in a westerly direction.

Shaanxi is pretty remote, so these regional suppliers like WCC are very much guarded against competition (due to the high cost of road transport for competitors), nothing more expensive than "heavy goods" transported by road and rail.

Xian (the captial of Shaanxi) is also a major tourist spot (due to those Terracota warriers), and so with the major city being well developed, again this leads to the spread of money out further into the provincial regions, so the growth story behind Shaanxi should remain on very solid footing.

It will be highly beneficial, as noted on Proactive article, if they can recieve the "Star Rating" as this will enhance their attractiveness.

Nothing exciting about the business plan, boring but demand and sales growing, expansion complete with first new line on line soon, second phase on line late summer, sales due to rise from 1.47m tonnes last year up to potentially 3.5m tonnes in 2008.......that will do for me as its over doubling in the coming 2 years.

Broker forecast for current year 2007 is 16.5p EPS.

They are also investing in a process to re-use electricity, which they hope will save costs to the tune of 25%. Given that electricity is the major cost item to them, a reduction like that will have serious positive impact on profits, not that they are struggling with them at the moment anyway.

They should be looking at somewhere in the region of 22p to 28p EPS in 2008, lets say 22p, and on that basis presently they are 8 times current, falling to 6 times next year.

Cash is being generated and being invested back into the business (the new process for electricity saving) which although means no maiden dividend for 2006 results just gone, with a potential saving of 25% of your costs could mean very significant profits and dividends in future. This style of management to hold off a dividend and invest in the business while you can grow it, is a style I like in the initial stages, I prefer companies to not just rush into paying dividends (and I hounded Leadcom about that, as I will any company that with one hand pays a divi and the other hand goes about raising more money in placings).

So, in summary, its boring, yet exciting. Its cheap and generating cash. The growth is there and being factored into developments, and also ongoing development to cut their costs. I like what I see of WCC so far.

Nice blue start to the week.

2 MM's up, now 1 v 2 @ 132/137

I am into this is well so please don't think you are talking to yourself.
Very little buys until this morning after results
Also have HAIK, RCG and GNG and starting to trade on the HSI.
Making money out of cement is not that boring,
I mean the Mafia have been doing it for years.

Indeed Peter

Those X trades should have eliminated a weak holder, and also shows we have a volume buyer.


L2 all blue now and 2 v 1 @ 135/140

Finished up a good amount today, also its moving on small buys, which would look like those X trades have cleared a seller, and now it can move on upwards.

Broker target for now is 220p and thats with 16.5p EPS forecast this year.

Nice few ticks up today as well, now 2 v 1 @143/149

Nice big 845K X trade there at mid price.....

Shows the buyer(s) is(are) still around, and taking out the weaker holders.

There is the reason for the jump up, delayed reported 100K buy at 155p (at 14:49)......someone is confident, well, from the buys today, quite a number of people are confident.

Couple of posts on AFN :


PapalPower - 4 Apr'07 - 01:29 - 107 of 111

OC, the lack of any pullback is likely to be due to the very different business models for WCC and SOLA. SOLA at the time was not understood, its tech, it was not "visible" and people got worried. WCC is a simple business, everyone can understand the boring process of making and selling cement, WCC also have plenty of cash and are generating cash.

Comparisons with PMHL are not valid per se, due the Iron Ore side of PMHL, which complicates the business model, and also the very high debt levels of PMHL, and their acquistions, and all acquisitions cloud the picutre and bring in risk until they are completely bedded in.

WCC is therefore very simple, easy to understand, and with lots of growth occuring, its in the boring business of cement, which all leads to an exciting stock holding.

Last year did 13.5 EPS, and forecast this year for 16.5p EPS.

This means historic PER is now times 11.8

Current year PER is times 9.7 falling to potentially times 6.5 in 2008.

For a business with cash, and generating cash, and strongly growing earnings, that is, imo, far too low.



OLIVERCROMWELL - 4 Apr'07 - 07:50 - 108 of 111

cast my eye over the results again and for a company cap of 83M it looks a steal on a pe of 12 with forecasted EPS growth of over 30% pa going forward. 2008 should see the full benefits of the new plant. Generated cash in 2006 of over 11m from operations. That is excellent. Debtors minimal, trade creditors minimal and inventories are simply coal. There is no trade inventory so that EVERYTHING that is produced is sold cos its bloody cement so working capital is never impacted from this part of WCC;s operation. That is quality in itself.

bank borrowings of over 11M for cap exp on the new plant is easily covered by cash (interest = 1m pa) is easily covered by 11x so no concerns on short term debt financing. Moreover borrowings have been used wisely for future earnigs enhancing cap exp. as opposed to borrowings to cover operational activities which should normally covered by cash from operations.

selling into an expanding market in western china, a consolidating producers market, monopoly position, strong cash generation, strong working capital, strong earnings going forward, plans for further expansion in 2008 and highly experienced mgt in Roberston.

Ill be buying

OliverC

Nice moves up again today, still cheap imo.

Very well spotted, Papalpower...WCC has a great business...It is cash rich, cash generating, diversity (cement, electricity, gas waste) in a country that is strongly driven towards industrialization and urbanization. And also a robust balance sheet - that says it all.


West China Cement Limited
27 March 2007

West China Cement Limited
('WCC' or 'the Company')
Preliminary Results for the year to December 31, 2006

Post-tax profits double (99.6%) to RMB 88.6 million (approx 5.9 million)
Sales up 29% to RMB 307.3 million (approx 20.35 million).
Net profit margin rises to 28.8% (18.6%)
December admission to AIM following 22 million fundraising
New 2m tonnes p.a. production facility at Lantian
Strongly positioned to benefit from industry rationalisation

Chairman's Statement

Two thousand and six was a landmark year in positioning West China Cement as a
key participant in the growth of the construction industry in Shaanxi Province.
The Company raised 22 million in London and the Far East to complete the
financing of the construction of its two new production lines at Lantian. The
Company's growing production capacity means that it is well placed to benefit
from growth in demand for cement in the provincial capital of Xi'an, and the
area around Pucheng, where the Company's existing plants are located.
Furthermore WCC's developing market presence and strong cash generating capacity mean that we are in a good position to contemplate further expansion in the south in the province.

The Initial Public Offering was successfully carried out on the AIM market in
London, and it is highly satisfactory to see London at the forefront of financing the development of the needs of the fast growing Chinese economy. Following admission to AIM, WCC's shares have traded at a premium to the IPO price of 1.05, albeit in thin trading volumes. The finance raised amounted to 20.1 million net of expenses, and this completed the financing required for the RMB420 million (approx. 28 million) Lantian project. This project consists of
the construction of two kilns, with related facilities, which will increase the
Company's cement production capacity by 2 million tonnes to 3.5 million tonnes.
The first kiln is in the process of hot commissioning and the first sales of cement are expected in April. The second line is due to enter production in the fourth quarter of this year. This new capacity is highly efficient and environmentally sound, and will be further enhanced on both counts when the RMB60 million (approx. 4 million) waste-heat generation project is completed at the end of this year. Lantian is situated 35 kilometres to the South-East of Xi'an, significantly closer to the market than its competitors, and it is linked to the Xi'an ring road by a new highway.

While Lantian did not contribute to production during 2006, WCC's output
nonetheless increased by 29% over the previous year, to 1.47 million tonnes, as
a result of earlier capacity expansion. Net profit for the year doubled to RMB88.6 million (approx 5.9 Million) on an increase in turnover of 29.0%, reflecting the benefits of scale as output from the Pucheng plant reached capacity. Margins were also higher as the Company was able to increase cement prices whilst costs remained broadly stable. Being able to increase output in a firm cement market meant that Net Profit margins rose to 28.8% from 18.6% in 2005. Despite this satisfactory financial performance, the board is not recommending a dividend in respect of 2006, in view of the projects in progress. The board expects to consider the question of dividend policy afresh in regard to 2007.

China is now the world's largest cement producer with output above 1 billion tonnes per annum, and output from domestic producers grew more than 65% between 2002 and 2005, reflecting the country's continuing construction boom. While cement prices in mainland China fell during 2004 and 2005 following government measures to rein in national economic growth, the onset of rationalisation and consolidation within the industry, combined with continually increasing demand, has seen a strengthening of prices since the early part of 2006.

The outlook for well-positioned producers such as West China Cement is thus
improving, and it is anticipated that the industry will become dominated by a
few financially-strong regional companies using modern production methods. This
trend is driven in large part by Government planners who are acting to encourage
modernisation and rationalization in the cement industry through enforced
closure of small, inefficient plants and the introduction of modern, environmentally-friendly manufacturing. WCC's progress to date has positioned us
well to emerge as one of these so called 'regional champions' with the required
financial stability and modern production processes. We also aim to benefit from
Government concerns about the uneven pace of economic development in China. Over recent years, Shaanxi Province, close to the geographical centre of China, has recorded stronger GDP growth than the national average and there is little
competition from producers in other provinces due in large part to high transportation costs.

It is also notable that the growth in the market for cement in China is
accompanied by a demand on the part of government and customers that production and service be of the highest standard. The ethos of WCC is one of excellence, in terms of the quality of product and the manner in which it is produced. WCC is committed to the highest Safety, Health and Environmental standards. It is pleasing to note that there were no serious injuries to employees or contractors working on our sites during the year and that WCC won a number of environmental awards.

The success of WCC thus far and the buoyant prospects for its market place
encourage the board to consider further expansion. We are actively examining the
feasibility of a further new plant, of up to 2 million tonnes production capacity, in the south of the province, an area presently served by imports from other parts of China. We hope to be able to report further progress on this later in the year.

In summary, the Board is confident that having delivered strong financial growth
during 2006, WCC is now well placed to consolidate its regional position as
rationalisation of the cement industry in China continues. The Company has made
good operational progress, and we are looking forward to a maiden contribution
from our new Lantian production lines during the year.

Market Overview

Chinese Cement Market

Demand for cement products in China is expected to remain strong in the years
ahead as the country continues its drive for wider industrialisation and
urbanisation. The Government's 11th Five-Year Development Plan provides for the
rapid development of key infrastructure projects such as highways, railways,
airports and major energy supply projects, while construction in the private
sector is continuing apace. According to the Regulation on Industrial
Restructuring Promotion, domestic demand for cement is expected to reach 1.2
billion - 1.25 billion tonnes by 2010; and by 2020, 70% of the cement produced
in China must come from manufacturers using environmentally-friendly New Dry
Process Production (NDPP) technology. WCC is already using this technology, both
in its original production plant at Pucheng, near Xi'an, and in the two
production lines at its new Lantian plant further to the north.

Shaanxi Cement Market

Located close to the geographical centre of China, Shaanxi Province is still
lagging other parts of the country in terms of its economic development. As
development continues, demand for cement in the province - driven by
infrastructure spending growth of 13% per annum - is expected to reach 35
million tonnes by 2010, according Shaanxi's 11th Five Year Development Plan. The
same plan identifies requirements for the consolidation of the cement industry
in the province, including the closure of smaller, inefficient, producers, the
elimination of out-dated production technology used by shaft kiln manufacturers,
and the closure of plants causing serious pollution. All of these measures
should serve to enhance the competitive strength of companies such as West China
Cement that have achieved critical mass and adopted NDPP technology ahead of the
competition.

Customers and Sales

The Company continued with the successful expansion of its customer base during
2006, but remain focused heavily on Shaanxi Province, where it is well
positioned to use the existing transport infrastructure to supply clients. A
little over half of sales during the year went to customers in the Weinan area,
with most of the rest going to customers around Xi'an, Yan'an and the southern
part of Shaanxi. Small amounts went to Yuncheng and Fenglingdu in Shanxi
Province, and to Yu Ling in Henan Province.

Province Areas and Cities Sales %
Shaanxi Weinan area 50.65
Xi'an 34.38
Shangluo 10.61
Yan'an 2.54
Shanxi Yuncheng 1.71
Henan Yuling 0.11

Although the Company has maintained its position as a key supplier to large
infrastructure projects, winning involvement in seven either underway or due to
start during 2007, it is also positioned to meet strong demand from the private
sector, where construction work continues apace. Sales during 2006, totaled 1.47
million tonnes, with bulk sales of 0.46 million tonnes accounting for 31.1% of
the total, and bagged sales of 1.01 million tonnes accounting for the remaining
68.9%. Of the total, 37%, or 0.54 million tonnes, was provided for use on major
infrastructure projects, and 63%, or 0.93 tonnes for the private sector. Sales
for the year reached RMB 307.32 million, up from RMB 238.24 million during 2005,representing a year-on-year increase of 29.0%. Weighted average selling price per tonne rose from RMB218 per tonne (approx. 14.53 per tonne) in 2005 to RMB244 per tonne (approx. 16.27 per tonne) in 2006.

Credit Controls

WCC continues to operate tight credit controls to maintain solid cash flow and
margins, adopting different approaches for different kinds of customer. With
supplies to major projects, the Company delivers monthly only after having
received payment for deliveries in the previous month. Private sector customers
are required to provide settlement in advance.

Operating Overview

Pucheng Plant

Annual production increased by 0.33 million tonnes, or 29%, over the previous 12
months. Input costs remained stable through the year.

Lantian Plant

Investment in the new Lantian production facility reached RMB 310 million
(approx. 20.67 million) by the end of December 2006, accounting for nearly 74%
of the total planned project investment of RMB 420 million (approx 28million).
The Number One cement milling system on the first of the two Lantian production
lines began operating in March, 2007, using bought in clinker, and is now
running smoothly. The plant's 110kw electricity generating substation project
began operating in February, and the road between the plant and its limestone
quarry was also successfully completed. The Number Two cement milling system on the same line, and the final adjustments to the raw material and burning systems are expected to complete by April, at which time the Lantian 1 production line will be fully operational. Equipment ordering for the Lantian 2 line has now been completed, and this plant is on schedule for completion in the fourth quarter of the year.

Waste Heat Project.

WCC intends to invest more than RMB 60 million (approx. 4 million) to provide a
waste heat project using manufacturing exhaust gases to generate electricity.
Two generating sets of 4.5 MW each have been installed, potentially saving
19,590 tonnes of coal per annum, and cutting annual emissions of CO2 by 52,650
tonnes and of NOx gases by 395 tonnes. Annual cost savings as a result of this
project will be of the order of RMB 14.7 million (approx. 0.98 million) and
completion is scheduled by the year end.

Research and development

To improve the quality of its products and to strengthen its competitiveness in
the market, the Company set up an R&D centre in conjunction with Xi'an
University of Architecture and Technology. The facility is located on the
university's campus and is strategically focused towards the improvement of
existing manufacturing processes and further research into future NDPP
technology. WCC's objective is the continual improvement of its products and to
become more reactive to customer demands.

Summary

In summary, it is pleasing to be able to report that our continued operational
success during the year under review has translated into a strong market
presence in the Weinan area around our Pucheng plant, while the start-up of our
first production line at Lantian should bolster our presence around Xi'an and in
the east of Shaanxi Province. Looking ahead, we are evaluating opportunities in
the south of the province, where prices are high thanks to a relatively scarcity
of local supply and the high transport costs from distant manufacturing plants.
Having met our operational targets successfully during 2006, we remain confident
of moving forward with equal success through 2007.

Jimin Zhang
Chief Executive Officer

I bought in this morning when they were down , looks like a good growth story ,,good call papalPower.

I bought these ones when they first floated, I should have waited as they drifted down until the results came out.... but even then it seemed clear that WCC would make good growth.....

Yes, I got into WCC 6250 shares this morning...lucky opportunity.

good luck to you guys, but certainly not for me ...... i hear China and i am very wary; no web site; very little trade .... none of it sounds good to me ...... by the way, nms is only 2000 so see what happens if you try to sell 6250 in a weakening market!

nms is 5000 actually cynic ,,very little trade ??

not according to the official stock exchange page it isn't

Iv'e traded them today

that does not mean nms is 5000 .... would sooner trust info on stock exchange site re both nms and volumes over the last few months ..... believe Septic Peg if you so choose

wary?.what, with Rob Robertson as chairman..ex boss at Tarmac and Anglo American plus non-exec director at Avocet mining..you're losing the plot my son..its a cement business dude! what's a webiste! I could set one up tomorrow with 500!! means nowt.

Daily MAil described WCC as the best chinese company on AIM. If we'd listen to you cynic none of us would have made a penny in SOLA!

if some of you Wunderkinde listened to me occasionally, you might also find yourselves backing some quality stocks for considerable profit too .... as for SOLA, do you not believe sp is now looking sickly?

cynic doesn't know what he is talking about here.

fine .... i was asked to comment so i did ..... i write as i find; sometimes i'm even right

you crack me up you do cynic. you proffer worthless generalisations that are based on opinion not FACT! If we all invested on that basis none of us would make any money.

FACT,FACT AND FACT AGAIN. WE WANT FACTS NOT OPINIONS.

F18

FACT IS you get from me what you get and as i said, suprisingly often it is good advice even if it does not coincide with your opinion.

Cynic, you are generalising that all China shares are no good. I think that is clearly not a FACT.

i have said that any company linked with china i treat with great caution and that is from first hand experience of dealing there.

You are certainly very generalising, cynic

quite possibly, but we do a lot of biz in F/E in general and have learnt that some countries and their practices are more "acceptable" than others ...... even companies that are part govn't owned will not necessarily have the same "moral code" as a similar institution in the west ..... so not just blind prejudice.

Maybe it is just your unlucky experience...

i think not ..... we have a very good Singaporean guy running our F/E operation ..... even SOLA with a cap some 8x greater than this tiddler is prone to some pretty exciting gyrations and i think it is also worth noting the tiny volume of monthly trades in WCC - find via www.stockexchange.com ...... also, though i am mocked for observing that WCC has no web site, it indicates to me that this company lacks the knowledge or nous on how to portray itself to the investing public and institutions, and may well not even care .... finally, the chinese, in common with most orientals, hold round eyes in pretty low esteem, so the fact that some ex plc chairman heads up WCC does nothing at all to inspire me (would you employ Eric Nicoli?) .... does Robertson even LIVE in China? ..... more likely to live in Surrey .... as for non-execs; even with new UK (not Chinese) rules, it is a lovely way to reel in plentiful dosh for little real input.

cynic no one asked for your opinion, however if you think its that bad a buy then short the bugger. if your not in them, long or short then why bother posting.

Firstly, none of your biz why i post here; secondly i would neither buy this stock nor short it- the logic for either is different, thirdly, i posted here originally because i was asked to .... fourthly, i don't recollect asking you to reply!

i posted here originally because i was asked to .... fourthly, i don't recollect asking you to reply


,Bit cocky arn't you cynic,,,,,,,,,,,,,,,, you come on here like some hot shot stock picker ,giving your opinion and tell me i'm wrong about the NMS when iv'e traded them through two brokers that day,if you read the other posts it doesn't look like everyones waiting for your advice does it . matter closed now thanks..

jimmyb,

ignore Cynic, he's a bore. He was ripping SOLA's business model apart (ie its chinese etc etc) only last year and then started to buy/sell/buy..of course initially he wouldn't touch it with a barge pole.

WCC is a well run business with big plans. The next Chinese Lafarge!

like i said, bores like cynic like to prohesise and proffer advice to poor, unsuspecting PI's like ourselves!

zzzzzzzzzzzzzzzzzzzzzz

wrong! .... i was asked to post by a"friend" on another thread .... time will tell; if i am wrong am delighted to be so ... at least i am happy to own up when i am which is considerably more than most here .... like you, they berate me for taking a contrary view to their own, but never have the backbone to stand up to admit when i am right, which is rather more often than you care to credit .... or for that matter, when they are wrong!

by the way, you are 150% wrong about NMS .... suggest you look at www.stockexcexchange.com and also learn what is meant by NMS

you were completely wrong about SOLA and u r completely wrong about West china cement. you are grasping at straws now mr cynic re: NMS. knob head and bore......take your place over on danvf..cruxificfion is awaiting u..

just one word for you cynic........... SOLA!!!!!!!!!! you bought ahahahahaha

wrong wrong wrong]

do try to cut out the childish abuse; it really is very dull .... yes, i did buy SOLA in the end and did very well out of it ..... in due course i sold out at 566 and was told in no uncertain terms that i was very foolish and that it would continue to rocket ..... which it briefly did to just over 600 ...... since when it has come back to about where i sold and is looking to weaken further ... if it pulls back to about 400, i shall consider buying back in.

WCC may do well eventually, but imo there are much better places to put money with a much greater likelihood of a decent profit

you spent weeks and weeks decrying SOLA and then you buy the stock and tell the thread you 'did very well out of it'! You even say that if it falls to 4 yo would buy back in! It is obvious to me that had you done a little research into SOLA before spouting your crap on here you would have made a hell of a lot more AND would not have exposed yourself to ridicule. IMO anyone who decries a company because it has the word 'Chinese' in it is simply neive and at worst malicious.

Your bearish nonsense places fear in the heads of those investors who are a little less experienced than I and therefore deserves to be exposed and ridiculed

Cynic.
Keep up the good work, it`s always important to hear both sides of a story.
Cheers.

thanks m8 .... F18 can rattle all he likes ... for myself, i am very happy to keep banking profits when the time looks right ..... at the end of the day, the only thing of importance is whether or not sp rises or falls ..... researching the chairman's breakfast preferences or even what "might might happen if" is fine for those who like that sort of thing.

new to wcc, bought in on IC advice, good return so far but hoping it will go further.

IC is very positive on WCC. It will go up further.

cynic spent at least the whole of aug and sept 2006 criticising and scare mongering about Renesola. I was bullish so I bought and he was bearish so, erm, well he bought also! Laughable hypocrisy or ludicrous duplicity. Confused? You should be. Is it possible to respect a person's opinion who says one thing and does another? No, i think not, so when he comments on a stock he clearly doesn't own then you know he's scaremonerging.

His opinion his based on nothing more than assumption. He prefers this subjective approach because he refuses to acknowledge the facts that are presented to him in WCC's 2006 financial results.

It is my intention going forward to ignore or certainly refuse to respond to his provocations. His neivety and ignorance about the stocks he chooses to comment upon are revealed by his double standards displayed on the SOLA thread.

Pop over to the SOLA thread and go right back and check his postings from beginning to end and you'll quickly discover his approach.

I really do appreciate constructive criticism of the stocks I buy. Analysis of a company's financial position vis a vis its results or analysis of the industry in which the company operates but to say 'it's got the word china' in the company name so no thankyou does not, IMO, inspire confidence in his contributions.

Quite sure the guy is a decent and respectable person but ive seen de-rampers at work so many times so for me I'll leave it upto others to accept or reject his input.

Fortitude, I have gone through the posts in SOLA and I would have to agree with you. Creating bad press for a good company is certainly demeaning. De-ramping a company and then get in yourself is a sham. Shame on you, cynic.

i never either ramp or deramp as you guys contentiously like to call it ..... i post as i see things, whether or not that falls in line with the favoured line of thinking .... if i change my mind, as i did with SOLA, then i have no problem posting as much ..... equlally, if i feel certain shares are better sold (not the same as shorting) then i will post that too, whether it is to bank a profit (SOLA again if you like) or because sp is just not performing despite the underlying quality of the stock (e.g. TLW)

cynic, you dont have to defend yourself to others, you know the truth of the matter and thats all that matters. just ignore em.
best regards
jkd

thanks jkd ..... fortunately i am pretty sanguine about these things and, as i have always marched to my own band, i am well aware that it is not always a comfortable journey, sometimes for myself and sometimes for others

'sanguine'? You've spent all day defending your investing style on the WCC thread. You don't even own the stock for gods sake. Why don't you stick to the stocks you do own and let WCC holders get on with discussing the company so that the thread isn't clogged with the sh*te you keep posting.

'i am well aware that it is not always a comfortable journey'..You make it sound like you're on the front line in Iraq! You wanna grow up mate. We're trading the markets not fighting the taliban.

cynic, I ask one thing of you. Stop posting subjective and ignorant sh*te on the WCC thread. It isn't wisdom. it's vacuous, meangingless twaddle.

you go off and discuss SOLA, you remember SOLA don't you? It's that company from CHINA (you know China don't you? apparently you don't invest in chinese companies do you. Well thats what you said). ah SOLA. based in Shanghai i believe. Of course its a CHINESE company!!!!! you've just broken your own investing rules and you expect others on this site to respect your opinion.

Like I said you're probably a decent guy but when it comes to understanding the art of equity investment it seems you fail miserably

You certainly don't have to hold a position in a stock to have an opinion and generally speaking BBs are for expressing your opinion. Of course there are those who use them as a vehicle for ramping or bashing. Historically, I must admit I have become a little pissed off when people pop up and post negative stuff without an interest in the company, but it goes with the territory of posting on and reading BB threads.

Well I value cynic's opinions.
It's a two way thing - I can agree or disagree ;)

thanks choccy ..... compliments from pretty girls doubly welcome .... lol!

am also glad i am not of that small mindless minority whose lack of sense, language skills and general politeness leaves them bereft of the ability to post other than personal abuse.

I won't disappoint you Cynic. How about 'you're a pompous, condescending pr*ck' for starters whose main aims are to deramp stocks and frighten neive investors into selling shares in profitable companies.

I'd say that's unethical, immoral and displays a lack of integrity.

pathetic!

Good reversal today ,very bullish ,Where is PapalPower ,i hope he will come back and post ,it's his thread after all.

Yes, I got in today at 158p...this has a very good prospect.

Welcome aboard hlyeo.

I am around, however tend to disappear when threads get busy but post more when they go quiet :)

It was a nice intraday reversal, quite a few stocks had them today, and it looks like there were lots of shakes across a few stocks this morning.

Papal Power
I use ADfvn ? for this share as there is little interest here.
It is bouncing around on very little trade like a Sola.
I am in it for the long haul although I am buying and selling on dips.

Papal Power
I use ADfvn ? for this share as there is little interest here.
It is bouncing around on very little trade like a Sola.
I am in it for the long haul although I may try to buy and sell on dips.

Added more WCC today as I've heard there is more demand for cement as the Olympics in China is approaching. Also news that China is increasing its flexibility on its currency... WCC is a BUY.

if i remember correctly, CEO now owns 59% of the company ....... how much do the other directors hold? ...... what about other large shareholders? ..... with such a large % being held by CEO in any case, is not the company and its sp open to even more manipulation (abuse) than usual?

Yes it might even push the price up cynic :-)

West China Cement Limited
20 April 2007


20th April 2007

West China Cement Limited
('West China Cement' or the 'Company')
Additional Listing

The Directors of West China Cement advise that the Company has today allotted
425,000 ordinary shares of 10p following an exercise of warrants. Application
will be made for the shares to be admitted to trading on AIM. The new shares
rank pari passu with the Company's issued ordinary shares and dealings are
expected to commence on the 26th April 2007.

As a result of this allotment the Company will have 64,113,366 ordinary shares
of 10p in issue.

Nice nudge up today ,,where is everyone ?

Good amount of buys yesterday. I think this would move higher in view of more industrialization, good economic growth in China and Olympics on the way.

Another nudge up hlyeo nice ,what happened to PapalPower, are you still in ?.

Yep jimmy, still holding and no worries. Could be a littel quiet in May and the summer, however this will for sure, imo, have a good run into the interim figures, if it does not on earlier news.

All is well at WCC, and worthy of a few tucked away for the long term.

Tipped in Growth Company Investor today.

Yep, "Speculative Buy".

you mean it's not rated as the absolute racing certainty that some here have been touting so loudly? (lol)

Edited by MoneyAM

fortuitude18,

Please do not use personally abusive language or words which may be deemed as unacceptable on these bulletin boards.

Ian

i will refrain from using such language in the future.

kindest regards

f18

Anyway as i said earlier ,tipped by Growth Company Investor ,which is nice .

Can you please paste the article here, jimmy?

Hi hlyeo , sorry but i don't subcribe so i can't,, however go and have a look across at advfn someone has a link there. Hope that helps,,,cheers Jimmy.

smacked wrist Forti (lol!) ..... did someone else disagree with you too and thus subjected to your childish tantrums? .... by the way, i don't now see you telling me or everyone else to buy SOLA .... why's that?

Nice little move up just then.

This has really caught fire over the last week PP. :-)

Huge growth is getting recognised in the rapid industrialization of China...WCC is in a niche where it can take advantage of this potential.

not for me at all this one, not only for reasons already stated, but also because though sp shot up today, volume was virtually NIL at just 17k ..... this smells of very poor liquidity and a horror story in waiting in a weak market even if nothing specifically wrong announced here .... God forbid there should be disappointing announcment.

cynic your becoming really boring ,go back and comment on shares you own,we know you don't like this one ,you'v made your point and i've made a few quid thanks,bye.

you have your opinion of this share (and me) and vice versa ...... owning a share does not give exclusivity to comment thereon, just as not owning one does not exclude ..... unlike many or even most on this site, i am transparent when i buy or sell and neither ramp nor deramp, but tell it as i truly see it .... no one asked you or anyone else to side with me.

Neither ramp or deramp !!! you,have deramped this again and again ,I think the truth is cynic that you saw a fast rise and shorted it ,but the blighter just won't crash, bad luck you made a bad decision.

oh i see .... so because i do not like a share and say so and why, then i am deramping it, whereas if i follow the herd, then i am just a good chap and not ramping? ..... i know it's early in the morning and my brain is functioning even less than usual, but i fail to follow your logic ... or is there none, and it its just a touch of spleen after too much port and brandy last night?

by the way, if i had shorted this stock, i would have posted as much, just as i always do elsewhere and similarly when i buy ..... in fact, such is the illiquidity of this WCC, i would doubt very much if there are even stock lenders about to make such an exercise worthwhile or even feasible.

dramatic Beijing shares crash on way, Greenspan warns ...... sharp rises are "clearly unsustainable"

Nice rise :)

Greenspan is just doing the scares but SOLA, GNG, GGG and WCC are all doing well - all Chinese shares. I somehow don't believe Greenspan, let us see.

Oh yeah, and not forgetting HAIK - another Chinese. ;)

no real view except that certain shares of no particular nationality get badly out of touch with reality ....... then they fullfil the adage of up like a rocket and down like the stick.

of the 4 you mention above, only SOLA looks half way buyable, and even there i am sitting on the sidelines until there is some clarity from their Q1 figures ..... at that juncture, i may take a position one way or another

For me, WCC is the best quality Chinese stock on AIM, and I have a holding in WCC only of the Chinese variety :)

cynic

you really are the proverbial muppet. What a waster. Bet you're the type of guy who leaves a girl very much disappointed and yearning for a real man.

oh man

f18

Up 23.5p today cynic ,i bet folk on here really wish they had listened to you !!,now run along before you embarrass yourself anymore.. :-) .

to be fair - apologies to cynic for another emotional outburst directed towards him... but he will insist in posting anti-chinese propaganda which simply doesn't stand upto scrutiny.

not posting again cos i get far too personal which isn't healthy and since I'm a fervent believer in free speech in reflects badly on me!

was it Voltaire who said 'i may not agree with what you say Sir but I would die for the right for you to say it'

f18

F18 .... noticed your abuse last night but refrained from responding .... of course had you actually read what i posted, you would have noted that i was merely quoting Greenspan and made no additional comment, so to say that i keep spouting anti-chinese propaganda or similar is just not borne out by the facts.

i was also very puzzled by your last sentence, neither because it lacked logic nor because i felt remotely insulted or even belittled, but merely because i felt it was probably a reflection of your own insecurities .... sorry to see that

Nearing 1 bagger status for me now, very nice :)

Great performance PP,, you called this one right.
Where's cynic he seems to have gone quiet.

as i said before, this one's not for me ...... you guys may well prove right and have found a winner, but one can't buy everything that moves and breathes ...... i remain very nervous of the chinese market ...... hope you guys watched that fascinating prog last night on western entrepreneurs in china

A good find, cement is rapidly in demand with the boom in the building markets globaly and the rate of growth of some Eastern companies growth looks here to stay.... Will watch for now and do some homework.

cynic - 05 Apr 2007 11:50 - 21 of 106
good luck to you guys, but certainly not for me ...... i hear China and i am very wary; no web site; very little trade .... none of it sounds good to me ...... by the way, nms is only 2000 so see what happens if you try to sell 6250 in a weakening market

cynic - 05 Apr 2007 12:46 - 27 of 106
if some of you Wunderkinde listened to me occasionally, you might also find yourselves backing some quality stocks for considerable profit too .... as for SOLA, do you not believe sp is now looking sickly?
--------------------------------------------



Well cynic if you read your two posts ,,,,,,,first i sold a fair amount(a lot more than 6250) and the market makers gave me 3 points above the bid ,second if we listened to you i wouldn't have gained 55 points to the good in 6 weeks ,so i think you need to stick to posting your thoughts on what your trading and also admit you were wrong .....

and if you weren't so keen to criticise, you would also have read my post 106 ...... and there have been plenty of (my) stocks that have gained significantly in recent weeks, as well as lost of course

finally, thank you for your advice on what i should write about .... it will be duly ignored!

There is a place for all opinions, that is what makes a good BB discussion. We will never know when another poster buys or sells, or if indeed they do hold, or are long or are short.

Good discussion of both sides (bull and bear) is desired for a balanced view.

As for me I have recently top sliced WCC and my remaining holding is in for free for the longer term.

Fact is cynic didn't just post a view ,he told me i was wrong about the market size when i had just traded ,and bashed the stock ,,i do agree with you PP i also like to hear all views,,,however not constant bashing , ,anyway an end to the matter now,,and no hard feelings cynic..

jimmy .... unlike a few here, i never hold grudges or similar .... i strongly believe in the adage, "If you can't take it, don't dish it!" ......

by the way, NMS (normal market size) which is what I posted originally, is not make-believe .... it is published on the official stock exchange site (per company) and is the quantity in which (I think) MMs are obliged to deal ..... WCC, inter alia, has a very low number, specifically 2000 shares .... that does not mean that at any given time you will not be able to buy or even sell in considerably greater volume .... however, come the day(s) of correction, you could well find yourself effectively unable to deal.

Same here cynic ,,have a virtual pint on me ..

will do ..... think i'll make mine a real pint of Pimms given the weather!

time you guys had a chart to look at, so herewith ...... i don't know if there is any commercial reason for the sharp retrenchment other than the fact that this stock is illiquid and it needs only a few sellers (or buyers) for sp to make a disproportionate move ...... for those thinking of taking the plunge (not i), then i suggest waiting until sp hits 25 dma and its reaction at that point ...... having notedd that just 918(!!!) shares seem to have been traded today, i rather suspect that 25 dma will prove no resistance at all, in which case 50 dma could easily be tested or even somewhere between 160 and 175 where there is arguably a bit more support

RNS Number:8790A West China Cement Limited
26 July 2007

West China Cement Limited ("West China Cement" or the "Company")

Trading Update

The Directors of West China Cement are pleased to announce the following trading
update.


First Half Trading
The cement market in Shaanxi Province remains buoyant and the Company has
benefited from firmer pricing which, coupled with improved cost control and
expanded capacity, means that profits for the first half of 2007 will be ahead
of the comparative period in 2006 and on track to meet market expectations for
the full year.


Lantian update
The Company's new production line at Lantian, 35km from Xian, commenced
production earlier this year. The first production line at Lantian, with
capacity for producing one million tonnes of cement per annum, is currently
operating at approximately 95% of designed capacity. The second production line,
of an additional one million tonnes, is now anticipated to commence operations
in August, ahead of the previously indicated timetable.

During the course of the construction of the Lantian plant, a number of
additional opportunities to improve the efficiency of the plant have emerged.
The Company has spent an additional RMB 47 million on these opportunities,
meaning that the total capital cost of the project is expected to be
approximately RMB470 million. These projects include facilities enabling the use
of de-sulphurised gypsum in the production process, increasing the capacity to
use wet fly-ash rather than dry and bringing the crushing of limestone in-house.
These enhancements are expected to lead to operating cost reductions and the use of de-sulphurised gypsum contributes to the PRC Government's green agenda.

Ankang
The directors of West China Cement are pleased to confirm that the local and
provincial governments have granted the Company authority to build a plant with
capacity of 1.8 million tonnes per annum in the Ankang area, in the south of
Shaanxi Province. After due consideration, the Board has today approved the
project and pre-construction work is scheduled to begin by the end of August,
with completion provisionally scheduled for early in 2009. There are currently
no large scale cement production plants in the Ankang area, meaning that cement
has to be brought into the region from a long distance away, leading to pricing
levels above those in the regions in which the Company currently operates. The
Directors believe that the proposed plant will benefit from significant location
and scale benefits and that the Company has sufficient systems and procedures
and depth of management to continue to deliver and manage its expansion. Further
details on the Ankang project will be provided in the interim statement in
September.


Enquiries:

Brett Miller, Director, West China Cement Limited
Tel: +44 207-584 3663

Christopher Caldwell, Insinger de Beaufort
Tel: +44 207-190 7000

fantastic performance from a share which i am happy to admit i seem to have wrongly slated! .... at least i own up to an error, which is more than most others seem capable of

More good moves today.

West China Cement warns FY to be slightly below mkt views; H1 pretax up 72 pct
AFX


LONDON (Thomson Financial) - West China Cement Ltd said it expects its full-year results to be slightly below current market expectations even as it posted a higher pretax profit for the six months ended June 30.

The company said its outlook for the full year remains 'robust' but added that current trading has been hit by severe rains which disrupted the supply of limestone to the Lantian plants, causing temporary production delays.

In the first half, pretax profit rose 72 pct to 56 mln rmb, from 32 mln rmb in the previous year, while turnover grew 46 pct to 201 mln rmb.

my post of 13th june, though even less reason to buy now!

110p will be a fair value for WCC now...plenty of other better bets to choose from.

130p now

whoops! ..... did i forget to voice great caution when dealing with the chinese? ..... very remiss of me!

The Chinese are very cunning nowadays since they have been bitten once, twice shy from the past.

the chinese have been bitten? ..... more likely the dumb gweilos

What I meant was dated back to historical opium war when the Chinese were duped literally into letting the gweilos into China and siphoning their wealth and culture, cynic.

113.5p now...how come the China Olympics is not boosting this company???

perhaps because the chinese are crooked by occidental standards and the markets are just waking up to that fact

122p today...maybe this is the turning point for another huge spike towards 200p

big spike to puncture balloon!

Hahahaha...so funny, cynic...you got a great sense of humour

and i make fun of myself too

Despite the recent profits, WCC has not even budge...looks like the Chinese are keeping the money to themselves...SELL.

about time someone started to agree with me!

Shareholders don't get any benefit from below, it is a tragedy, cynic.


West China Cement Limited
31 March 2008

Full Year 2007 Preliminary Results

Strongest results to date lay foundations for significant future growth

31 March 2008: West China Cement (WCC), the producer and distributor of cement based in the western Chinese province of Shaanxi, whose shares are quoted on the London Stock Exchange's AIM market, today announced its preliminary results for the year ended 31 December 2007.

Key financial highlights

Revenues increased to Rmb 526 million (37.6 million) from Rmb 307
million (21.9 million) - up 71 per cent

Record post-tax profit of Rmb 150 million (10.7 million), a 69 per
cent increase over 2006

matter of opinion ..... my view of chinese-run companies is no secret

96p now despite above results...SELL WCC!

.

This one is on a current year PER of just over times 2, and a forward PER of under times 2. Makes it very cheap.

I had a change of stance on this one and have been buying in since 120p levels, and see the potential here to do a "SOLA" given over 1 pounds of earnings forecasts for next year.


Broker forecasts :


Evolution Watter... 31-03-09 BUY

2009 PTP 56.62m
2009 EPS 78.63p

2010 PTP 75.94m
2010 EPS 104.57p

West China Cement has a simple, strong product, using very modern facilities, and is ideally placed as the second largest cement producers in the central China region of Shaanxi. It has ambitious but quite achievable targets for growth, an excellent growth track record and is currently stunningly good value.

WCC has raised significant capital to fund the development at Ankang, which has recently come on stream, soon to raise production capacity by 50% (1.8 million tonnes) to about 5.3m tonnes. The full benefit will be seen in H2 2009. The debt incurred for completing this development is expensive (due to the dreadful credit markets), but could still be comfortably repayed over the next 2 years, given the strong demand for their products and cash flow, if WCC were not aiming for further growth in production of 2m tonnes by Q3 2010.

Two new 1m tonne p.a. plants near the city of Hanzhong are targeted to come on stream in mid 2010. Debt for this new development should be charged at a modest 5%. The longer term target is to increase capacity yet further to some 10m tonnes p.a. by 2011.

Strong product: WCC has won awards for the quality of their building materials (e.g. in 2007 an award for Outstanding National Laboratory in the Building Materials Industry; more recently in January 2009 they were "Provincial Model Enterprise for Environmental Protection"). WCC was the first in Shaanxi to get ISO14001 (Environmental Management system) accreditation. They also use waste heat for power generation. This is important, as small and less green and efficient producers have been shut down. The Lantian waste heat project was completed in August with expected cost savings of RMB 14 million p.a.. WCC naturally got official praise for this too.

Ideally Placed: While the current downturn has hit export-based areas of China such as Guangdong, WCC is well removed from this, being located in Shaanxi, one of the key provinces targetted by the government for infrastructure development, with a host of roads and railways being planned and built to both improve the local transport links and also use Shaanxi as a corridor connecting other parts of China. The government's huge stimulus package specifically targets this kind of development, and in this area. WCC's recent expansion with Ankang, and the two new 1m tonne developments at Yangxian and Mianxian (near Hanzhong), are in the South West of Shaanxi, where there is little competition and robust demand, so margins should be good. WCC have won a number of contracts in the last year, and have obviously excellent prospects for more, which will result in a healthy order book. Currently, there is additional demand from the earthquake-shattered areas of neighbouring Sichuan, and WCC are providing cement for reconstruction work.

The board is well connected, with the CEO Jimin Zhang being a Shaanxi Congress Delegate, advising on links between government and Enterprise.

New Thread : http://www.moneyam.com/InvestorsRoom/posts.php?tid=14049#lastread



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