.

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...

Hi Proselenes, am I right in thinking you are the new revamped papalpower?

I have been using this new name for over a year now, perhaps even longer.

Prices of cement in key WCC markets stable. (Broker estimates are based on 300RMB average selling price).

http://www.cementchina.net/news/shownews.asp?id=6004

Shaanxi (main market) steady at 371 RMB

Sichaun (minor market) steady at 418 RMB

Gansu (minor market) steady at 450 RMB

Strong today and moving up nicely.

Decent end of the week. I would imagine this will have plenty of legs into results and the institutional/investor presentations after results.

Returned from my jollies and am pleased to see the market behave whilst I was away.

I equally won't be able to make the PI presentation (work comittments) but would appreciate feedback etc - shame it wasn't an evening or even week-end event, but have to commend managment on the very fact a mtg is being held.

Must digest CHNS non-movement now, as personally had expected a surge here, in the belief that it was merely a stock overhang holding the SP back.

Cash concerns will be the worry at CHNS, many people are sceptical about the last figures and expecting a massive outflow of cash at the interims.

WCC looking for 400p or more in the coming few weeks IMO.