West China Cement (2233) H1 2026 earnings summary

Executive summary

• Revenue declined 16.5% year-over-year to RMB4,526.9 million, mainly due to lower sales volumes in China, partially offset by strong overseas growth.

• Profit attributable to owners dropped 49.4% to RMB378.8 million, reflecting weaker domestic demand and lower ASPs in China, despite robust overseas performance.

• Overseas operations contributed 67% of total revenue and 92% of gross profit, with significant growth in Africa and Central Asia.

• China operations suffered from declining cement demand, lower ASPs, and reduced capacity utilization, while overseas operations saw higher ASPs and margins.

• The Group completed major capacity expansions in Uganda and continued to strengthen its position in sub-Saharan Africa and Central Asia.

Financial highlights

• Gross profit decreased 9.5% to RMB1,404.2 million; gross margin improved to 31.0% from 28.6% year-over-year.

• EBITDA fell 17.8% to RMB1,518.4 million; EBITDA margin slightly decreased to 33.5%.

• Basic EPS dropped to 6.9 cents from 13.7 cents year-over-year.

• Total assets increased 2.7% to RMB36,203 million; net debt decreased 4.6% to RMB9,508.1 million.

• Net gearing improved to 67.9% from 71.6% at year-end 2025.

Outlook and guidance

• Focus remains on overseas expansion, with the AfriSam acquisition in South Africa expected to complete in H2 2026.

• Construction of the Dugongo Nampula Plant in Mozambique is targeted for completion in Q1 2027.

• Domestic market expected to remain subdued, but infrastructure projects in southern Shaanxi may support demand.

• Overseas markets, especially Africa and Central Asia, are expected to drive future growth.