Updates

West China Cement

April 2010

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West China reported a 111% increase in adjusted pretax profit to RMB544m (Â£52.3m), with underlying eps increasing by 101% to 7.73 RMB (74p). Both profit and eps were well ahead of expectations and analysts have upgraded forecasts.Gross margins improved from 36% to 42%, reflecting strong cement price rises, while return on capital increased from 30.5% to 47.6%. West China also announced plans to build two new plants which, along with last year's two acquisitions, will increase capacity to 11.8m tonnes by the year end - compared to previous expectations of 9m tonnes. This investment will increase debt from RMB 1.3bn last year towards RMB 1.6bn but strong cash flows should reduce this sharply thereafter. West China has ...

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