WESTCHINACEMENT

West China Cement (2233.HK) gapped up and advanced steadily today, closing 6.99% higher at HKD 1.53, with the intraday high reaching HKD 1.53, marking a 14.18% rebound from its 52-week low of HKD 1.34. The morning session rose from HKD 1.48 to HKD 1.53, while the afternoon consolidated within a HKD 1.49-1.53 range, finishing at the day's high. The upward move was driven by a profit guidance forecasting 33%-43% YoY growth for 2025, followed by a CITIC Securities 'Buy' rating with a target price of HKD 3.73. Despite Q4 2025 revenue declining 5.38% YoY to HKD 2.34 billion and net profit dropping 42.64% to HKD 73 million, the net profit margin held steady at 3.12%, matching Q3's level. The stock, at HKD 1.53, remains well above its 52-week low but is still down 50.96% YTD and trades below both the MA20 (HKD 1.643) and MA60 (HKD 2.165), indicating enduring weakness. However, the company's acquisition of a Southern Africa business for up to USD 145 million may provide a new growth catalyst.