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Fundamentals and forecasts for WCC :


http://www.digitallook.com/cgi-bin/dlmedia/security.cgi?ac=&csi=201989&username=


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Quite stunning when you compare peers on other markets.

I notice that there is a sell note out on "Anhui Conch" who are a cement producer in Anhui. The note says the PER of times 21 is too high, and a new targer price of PER times 17 of current year forecast.


LOL.


Put WCC on current year forecast of 17 times and you get 17 x 1190p (yes near 12 pounds).

Do that again next year and you get 17 times 1785p (year near 18 pounds).

Now its never going to achieve that kind of rating on the AIM market, but they are looking to dual list as part of their loan deal announced last year.

Given the outlook, the peer group ratings on other markets and the liklihood of a dual listing then WCC certainly should fall into most peoples "put some in the bottom drawer" and keep for a couple of years kind of investment.

Not that many potential multibaggers out there, especially ones presently on a PER of less than times 3 and one that is profitable and expanding, now, through the use of internally generated cash.

Couple of media articles, one from Nov last year highlighting that WCC is likely going to be a big beneficiary of the Domestic Stimulus plan in China, and a more recent one from PI, snippets from both below :

http://wallstreetpit.com/998-chinas-585-billion-renovation

................Most of the bailout package will be spent on the raw materials and service-suppliers needed to build roads, bridges, and other infrastructure. We should be looking at companies who operate exclusively in that space. Here’s a few we would consider pure-plays on China aggressive infrastructure spending:

West China Cement (LSE: WCC) is definitely going to be very busy. It produces and sells cement, using environmentally sound practices, under the brand ‘Yaobai Cement’. It has three production lines in the Pucheng area (100 miles north of Xi’an) which can crank out 1.5 million tons of cement a year. A massive new plant, however, is scheduled to be completed in the next six months, bringing total production to 5.8 million tons. West China Cement had sales of about U.S. $430 million last year. Its profits and operating income increased about 70% from the previous year.

Guangshen Railway (NYSE: GSH) is a $107 billion transportation....................


-----------------------

http://www.proactiveinvestors.co.uk/companies/news/5073/west-china-cement-record-sales-and-approval-for-two-new-plants-in-earthquake-reconstruction-area--5073.html?WCC

..................The company is to set to supply a number of large infrastrucuture projects with cement over the next two or three next years as the Chinese government invests a large sums of its economic stimulus package on roads, railways and post-earthquake reconstruction in Western China.

The company also Monday announced approval for its Hanzhong ........................

LOOKING GOOD.

More good news today for WCC and the like as "cement stocks" were strong in Asian trading today on news of potential for yet more increased demand.


http://www.forbes.com/feeds/afx/2009/04/30/afx6358749.html

Thomson Reuters
China stocks rise 0.8 pct; property, cement strong
04.30.09, 01:04 AM EDT

SHANGHAI, April 30 (Reuters) - Chinese stocks rose 0.83 percent on Friday, with property and cement shares strong after a cut in capital requirements for investment projects while Shanghai-based firms ga.................

http://www.investegate.co.uk/Article.aspx?id=200905051204196840R

AGM result out, interesting........


RNS Number : 6840R
West China Cement Limited
05 May 2009

Result of Annual General Meeting

The Company is pleased to announce that all resolutions proposed at its Annual General Meeting, held earlier today, were duly passed by shareholders.

Brett Miller, Non-Executive Director, made the following remarks in response to a shareholder enquiry:

'Whilst AIM has served West China Cement very well, the Directors believe that a move to the Hong Kong Stock Exchange or London Stock Exchange Full List might be a natural progression for the Company. At the appropriate time, the Board will need to consider the merits, implications and timing of such a listing in detail. However, the Company's main focus at present is the operations of the business and managing the Company's growth, particularly in light of the recent announcement to build two new cement plants in the South West Shaanxi province.'

Enquiries:
Brett Miller, West China Cement Limited
Tel: +44 20 7584 3663


Christopher Caldwell or Emma Brewer, NCB Stockbrokers Ltd
Tel: + 44 20 7071 5200

Some large trades in there today, and the time they go through and the price kind of suggests that someone is buying lumps of WCC and builing a larger holding. Looks to me like institutional buying is going on, and who can blame them. If they can pick up a million of so WCC at sub 300p and wait a couple of years, they should be looking at quite spectacular gains.

Update from IC on 6th April :

http://www.investorschronicle.co.uk/

Tip update

BUY

WCC’s share price has rebounded in 2009 and it’s roughly where it was 12 months ago. Broker Evolution forecasts 2009 revenues of RMB 1.44m and nearly doubled net profits of RMB490m. Buy.

For those interested in a bit more detail of WCC, there are 5 MM's on WCC this being EVO, WINS, SCAP, LIBR and KBC.

Presently quite strong at 5 v 1 at 184/189



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Mentioned in the Times today under "Tiddler to Watch", snippet below, full article on the link.

http://business.timesonline.co.uk/tol/business/markets/article6252183.ece

".............Tiddler to watch

Shares in West China Cement, the cement producer located......................"


-----------------------


Little bird also says they got a write up in SCSW this weekend ( http://www.scsw.co.uk/ ) so it would seem that more and more people are getting to know a bit more about WCC and its potentially very exciting future and outlook.


.

Looks like a small consolidation with profit taking/top slicing by some is now over.

Looking stronger, and it also appears some institutional buying has been going on.

Alan Gibbs at Waverton appears very bullish on West China Cement (WCC).

I agree with him on this company, perhaps not on some of his other views.


http://www.citywire.co.uk/adviser/-/news/fund-manager-views/content.aspx?ID=340459&Page=2

http://www.trustnet.com/News/Printable.aspx?scope=Offshore&id=36568


.

Outlook statement from China Shuangji Cement's final results which were released on last Friday :

Business Outlook:

The Company is currently building a new 1 million metric ton cement plant outside Zhaoyuan City to replace the old Zhaoyuan plant and will be completed in July 2009. The Company acquired fifty-one percent ownership in a 300,000 metric ton plant in nearby Longkou, Shandong in April 2009 and will upgrade capacity to 500,000 metric tons by July 2009.

"We foresee positive business sales in the fiscal first quarter and beyond due to the Chinese Government decision to shut down a collection of small cement plants by the end of 2010 and the Chinese Government's recently announced 4-trillion-RMB ($586 billion) economic stimulus plan. This will result in expanding our cement market and increased commodity price for cement," stated Mr. Song.


Which confirms that the government is actively shutting down smaller and polluting cement producers (ones which also produce inferior grade cement) and they are encouraging the growing producers who utilise new plants and new cleaner technology. Which is why WCC is forecast to make over 100p of earnings in 2010, and much higher levels again in 2011 when all the plants presently planned contribute to a full year of revenue and profits.

WCC will continue to grow their output as demand is robust from not only continued construction projects, but also the shutting down of smaller cement producers.

Strong again today. When you look at the development of "expressways" in China (which in the UK would be classed as motorways) its quite staggering.

Again a benefit here is that expressways are now being built more so in central and western China, along with lots of cement roads replacing mud ones, and so, being in the right place where the demand is, a company like WCC can grow very strongly in the coming years.

Historical Development of Expressway Length in China

Year Distance (KM)

01-01-1988 0

01-01-1989 147

01-01-1990 271

01-01-1991 522

01-01-1992 574

01-01-1993 652

01-01-1994 1145

01-01-1995 1603

01-01-1996 2141

01-01-1997 3422

01-01-1998 4771

01-01-1999 8733

01-01-2000 11605

01-01-2001 16314

01-01-2002 19453

01-01-2003 25200

01-01-2004 29800

01-01-2005 34300

01-01-2006 41005

01-01-2007 45339

01-01-2008 53913

01-01-2009 60346

01-01-2010 65000 (projected)

Good news for WCC, as the price of electricity/coal is a major cost for cement producers. Over-capacity and weak prices is excellent for boosting margins, and boosted they should be in 2009 and 2010 at this rate.

http://www.mineweb.net/mineweb/view/mineweb/en/page38?oid=83752&sn=Detail


Is China headed for coal production overcapacity?

China's voracious energy demands notwithstanding, a China Coal Industry official suggests a trend for overcapacity may be emerging.

Author: Dorothy Kosich
Posted: Monday , 25 May 2009

RENO, NV -

The deputy director of the China Coal Industry Association says "weak demand has resulted in a clear trend for overcapacity" in the country's coal industry.

The nation's coal production incre...............

Outlook is very exciting as we all know. Taiwan companies see the potential too, the future looks very enticing for WCC and their location and prospects.

http://cens.com/cens/html/en/news/news_inner_27765.html

Taiwanese Cement Firms Step Up Investments in China

2009/06/01

Taipei, June 1, 2009 (CENS)--

To vie for the business opportunities generated by China`s policy to boost domestic demand, Taiwan-based cement producers are increasing investments in China.

Asia Cement Corporation said it would invest over NT$5 billion (US$153.37 million at US$1:NT$32.6) to set up four kilns in China in the next three years. Chia Hsin Cement Corporation will invest over 100 million renminbi to exp........................

Good news :

http://www.investegate.co.uk/Article.aspx?id=200906090700135534T

RNS Number : 5534T
West China Cement Limited
09 June 2009

West China Cement Limited (AIM:WCC)

Contract Wins

Shitian Expressway and Baotou - Xi'an Railway Line

West China Cement Limited ('WCC'), the AIM listed cement production and sales company located in Shaanxi Province, China, is pleased to announce it has won contracts on two projects in the area.


Shitian Expressway

The more significant of the two is winning the majority of contracts up for tender for the Shitian Expressway project. As at 31 May 2009, Shitian Expressway had opened 64 tender sections, 51 of which are in Ankang Section and 13 in Hanzhong Section. WCC won 43 contracts in Ankang and 11 in Hanzhong, resulting in an overall number of 54 contracts obtained so far, an impressive 84% of the total sections up for tender. There are another 25 sections within Hanzhong region that are yet to be opened for tender. This accomplishment can be credited to the experienced WCC team, the reputation of the Company, and the market share and advantageous geographical locations in which WCC operates.


The Shitian Expressway is of great importance as it links Central China and North Western China. It runs from Shiyan in Hubei Province to Tianshui in Gansu Province, passing across 11 counties in southern Shaanxi Province, linking Ankang and Hanzhong. The total mileage is 750 km, of which 480 km is in Shaanxi Province.


Construction of the Expressway commenced in late 2008 and is expected to open to traffic in 2011. The estimated cement consumption for the sections that fell within WCC's sales radius is 3 million tonnes, with 1 million tonnes per section needed specifically for Ankang West Section, Ankang East Section and Hanzong Section respectively.


An investment of RMB 32 billion (2.8 billion) has been allocated for this project and given its scale and breadth, it will be instrumental in facilitating provincial productivity distribution and economic development.


Baotou - Xi'an Railway Line

On 1 June 2009, biddings for three sections of the Baotou - Xi'an Railway Line took place. WCC tendered for the one section running through the Weinan region, where WCC's Pucheng plant is located and consequently was awarded this section. The estimated cement consumption for this section is approximately 600,000 tonnes.


The line will be 935 km long and will connect Baotou in Inner-Mongolia and Xi'an in Shaanxi Province. The sections that were opened for bidding stretch from the Yulin region in Northern Shaanxi to the Weinan region.


Commenting on the projects, WCC's Chief Executive Officer Jimin Zhang said:


'I am delighted with the wins on both projects. The high percentage of Sections on the Shitian Expressway that have been awarded to us is a result of the determination of our successful team at WCC. These are significant projects for the Provinces involved with large scale investment which will enhance productivity distribution and economic development for all the regions involved and beyond.'



For further information, please contact:


Citigate Dewe Rogerson

Pui Shan Lee Tel: + 86 21 6340 4186 / Mob: + 86 138 1712 5781

ps.lee@citigate.com.cn


Susanna Gale Tel: + 852 2533 4607 / Mob: + 852 9457 4356

susanna.gale@citigate.com.hk


Notes to Editors:

West China Cement listed on the AIM market of the London Stock Exchange on 4 December 2006, raising approximately 20.1 million net of expenses.

Prior to the listing, the Company, which is headquartered in Xi'an the provincial capital of Shaanxi Province, had operated three cement production plants in Pucheng with a combined production capacity of 1.5 million tonnes per annum since 2003.

In order to service the growing demand for cement in the region, a new plant running two cement production lines, funded by money raised at the IPO, opened in Lantian in 2007 and has a production capacity of 2 million tonnes.

The company's 1.8 million tonne third plant at Ankang started producing and selling cement in March 2009 and is expected to reach full capacity in the second half of 2009.

Approval for the building of two new cement plants, Yangxian and Mianxian, each with a capacity of 1 million tonnes per annum, was announced in March 2009. With the massive government spend on infrastructure as part of the RMB 4 trillion fiscal stimulus package and the need to rebuild in the wake of the Sichuan earthquake which occurred in this area, the Company has chosen the appropriate location to build these latest projects.

Enjoying a superb long holiday but keep getting alerts about WCC going up leaps and bounds.

Nice to see it moving, but its still cheap as chips below 10 pounds, so no reason to get excited yet just keep on holding and adding.

Enjoy.

Edit.

Given 2010 EPS could be well over 120p and given the ratings for these companies on the Hang Seng, my target is 15 pounds by 2012, all being well.