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West China Cement - To list on HKSE on 10 August

August 2010

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • WCC
  • Price:
  • 665p
West China surged as the company published its pathfinder prospectus ahead of its expected listing on the Hong Kong Stock Exchange, with a record date set at 10 August and the listing occurring just after. Copies are available at the following web link:http://www.hkexnews.hk/reports/prelist/EWPWESTC-20100723-Full.pdf. The document contains a pretax profit forecast of “at least RMB307m for the first six months.” This is against RMB330m pretax in the whole of last year. West China has seven cement lines in operation and two more are underway with aggregate capacity to hit 12.5m tones (actual output expected at 9.5m tones this year). New plants are no longer allowed to open so an era of acquisitive growth is now ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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