.

Cement prices in their home province (North West Shanxi (Shaanxi)) are up again being +5 to 378RMB now.

http://www.cementchina.net/news/shownews.asp?id=5953

Provided they keep above 300 then I am happy.

An interesting Friday last week with a sharp shake down and then finishing up on the day, may or may not bode well for some strength this coming week.

Interims next month.

Rising well today.

Appears that SCSW gave WCC a good write up over the weekend and a buy rating. ( http://www.scsw.co.uk/ )

Cannot blame them given the potential for this company going forward. Should be looking at over 150p of earnings for 2011, so you can guess what the stock price might be at that time.

in many ways, it's quite a tempting stock (despite its parentage!), but it is so thinly traded - about 130k per day - that even buying 2500, or trying to sell same in a soggy market could prove problematic ..... the spread also tends to be pretty hefty too

I thought you didn't like any China stocks cynic especially this one ,we had a ding dong about this a couple of years ago,,why the turnaround ,(not having a dig by the way) .

i don't like china stocks, and i allude to that in my post ..... for all that, i contemplated having a few of these, but for the reasons above, have decided against

Trading in size is not a problem, you just need a good broker, not an online one or a bucket shop job.

2500 shares for on line trades is suffucient for plenty of PI's. 5 trades of that size and thats 30K pounds traded.

i have L2 and can deal direct with the market .... my comment remains the same about illiquidity

Done well to keep hold of the rise and consolidate a little.

There simply is no better Chinese stock on the AIM. Keep buying and adding and holding it what I shall do, and let the profits pile up as the stock price continues to rise up to my 15 pounds target price.

This is not some techy stock that might fall over anytime, or some weird software company that pumps out profit warnings and could fall over anytime. This is cement and its in demand and demand will keep on growing. A very safe investment IMO. Put your money in and forget about it for 2 years and then be very delighted at whats happened.

The Yangxian plant (due to be on line Q2 2010) appears to be still on schedule.

Link Click Here

Company News August 7th 2009

Shaanxi Provincial Inspection Group visited Yangxian Plant

Shaanxi Provincial inspection group and a Standing Committee Member of Yangxian County visited Yangxian plant, the fully owned subsidiary of West China Cement Limited (“WCC”), which is under construction. The plant manager Mr. Wang Fayin and relative leaders warmly welcomed the inspection group.

During the visit, Mr. Wang gave a detailed introduction of the project progression, and the performances and achievements that have been recognized in the past months. The group hopes all staff will be overcome the bad weather and other adverse factors to ensure the plant can be successfully fired up on time and contribute to the local economic development.

At the same time, the plant manager Mr. Wang on behalf of all staff gives thanks for the provincial leader’s support and care. He also pointed out that the group will overcome all the difficulties, continue to be hard working and strive to build a high-quality and high-efficiency demonstration plant.

Edging up.

Cheapest Chinese stock on the market imv given who they are, what they do and the forward looking firm potential.

Nearing 300p, would be nice to break through and get the bid price at over 300p.

Nice to see someone as prominent as Giles Hargreave saying he likes West China Cement and the price could double quite quickly. I am expecting it to triple in the mid term, but yes double short term.

Interview from 14th August, comment on WCC about 1m 47s in.

Enjoy.

http://www.citywire.co.uk/adviser/-/video/week-in-investment/content.aspx?ID=353760


.

http://business.scotsman.com/personal-finance/If-the-small-cap-fits.5556824.jp

'.......Hargreave is partial to "quirky" companies, a good recent example being West China Cement, listed on the alternative investment market (AIM) but insulated from the UK economy. "Chinese companies quoted on AIM sell on amazingly low ratings even though they are growing," Hargreave noted. "If West China Cement gets listed in HK or even here there will be a dramatic rise in its share price........"'

MM's really had to spike the price today to loosen up some stock to fill buyers demands.

All very good for the future to get some churn and getting weaker holders out.

EVO are forecasting 1.89m tonnes sold for half one of 2009 at a price of 300RMB average for the period.

That is sales of 568m RMB with gross margin at around 40.8% giving a PBT of 195.4m and a net profit of say 181 million RMB.

That should fall in with my desires of 25p earnings for the half year, or say 2.75 RMB of earnings.

There is potential for a little upside if the average price is a little higher than 300RMB but given the close relationship between EVO and their client I would suggest their figures should be close.

For those looking ahead WCC should be producing and selling 10m tonnes by end 2010 (this is the stated goal and also everything is in place). For for 2011 you would get 10m tonnes sold at say 400RMB average price (cement is on the up in Western China and over 400 already in some places) which would be sales of 4 billion RMB . So in a very simple illustration of taking 7 times (4 billion divided by the 1st half 568m) the forecast earnings for 1st half 09 at 568m sales you get 7 x 2.75rmb = 19.25 rmb or prospective 1.72 of EPS for full year 2011 results.

Again the 1.72 of earnings is in the range I was talking about earlier for 2011 full year.

Happily holding and adding and waiting patiently for 10m tonnes sold in 2011 with further plans announced by that stage and in process to increase capacity even more.

Bit of expected profit after some good rises, allows other to now buy in and add more.

Cheapest and best quality Chinese stock on AIM, and well worth buying lots more IMO.

Should be the next leg up now as the short term money has left, onwards and upwards to interims and beyond.

Anyone interested please note :

WCC management are planning an institutional investor road show in September following the interim results announcement.

As part of this road show, the company would like to invite retail investors to an investor presentation and Q&A session on Tuesday 8th September at

The Caledonian Club,
9 Halkin Street,
Belgravia,
London SW1X 7DR.

The meeting will be at 3:30pm (15:30).

Ms Po Ling Low, WCC CFO and Mr Robbie Robertson, WCC Non Executive Chairman will be presenting at this meeting.

Please email the corporate broker, Anthony Schindler( anthony.schindler@evolutionchina.com ) to confirm your attendance at this meeting.

Presentation: Sept09, London.
Can't get there due to other work; but eager to have account of events (ie here), if a few "retail investors" can contribute....etc. that should create some "balance" . . . . IMHO.

Looking at sp it seems the time to invest was Jan09, abt. 50p . . . the current sp is looking "robust" at 3.20 esp as there is no yield. Hargreaves may be excited about this stock, but they hope to make money on each "deal" - and it's up to retail investors from there on.

hangon, its a growth stock and the money is being re-invested into the business for furhter growth, therefore you cannot expect a dividend, this is pure growth. The rating therefore is low, as if you did not re-invest then the potential dividend would be high and therefore the yield too.

The only fair rating for such a growth stock is on a PER basis, and 10 times would be fair value in my book, so for this year around 7 pounds, moving to aorund 10 pounds in 2010 etc...