# Anhui Conch Cement (600585.SHG)

Canonical: https://gigainvestors.com/s/600585.SHG

Analysis as of: 2026-10-16T07:35:18.674Z. Financial observations: FY1999–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 17.51 per share; close as of 2026-10-15.

Estimated value: low CNY 20.29 per share, central CNY 21.62 per share, high CNY 23.39 per share. Buy at or below the central value CNY 21.62 per share. Valuation as of 2026-10-16T07:35:18.674Z; scenarios are not confidence intervals.

Expected annual return: 14.4% at the stated quote. About 14.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.39×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.19×

- FY2017: 0.28×

- FY2018: 0.31×

- FY2019: 0.28×

- FY2020: 0.26×

- FY2021: 0.26×

- FY2022: 0.15×

- FY2023: 0.09×

- FY2024: 0.11×

- FY2025: 0.10×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 7.5pp below the typical margin (limit 4pp)

- ROIC, median of available years: 16.3%

- ROIC, second-lowest year: 5.2%

- Typical minus recent gross margin: 7.5 pp

- Typical gross margin (annual median): 29.2%

- Recent gross margin (lower of latest and 3-year median): 21.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 9.0%

- ROIC including acquisitions, ten-year median: 16.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 10.9%

- FY2017: 20.6%

- FY2018: 36.4%

- FY2019: 44.2%

- FY2020: 43.3%

- FY2021: 33.1%

- FY2022: 11.9%

- FY2023: 7.8%

- FY2024: 5.2%

- FY2025: 4.1%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.53×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 40B

- Net income, five-year total: CNY 75B

- Return on incremental invested capital: -0.4%

- Working capital / revenue, annual change: 0.0 pp

- Working capital / revenue, change between three-year averages: -2.2 pp

- Working capital / revenue, final three-year average: 16.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.72×

- FY2022: -0.25×

- FY2023: 0.81×

- FY2024: 0.62×

- FY2025: 0.85×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 20.6% vs 5.2%

- Per-share earnings: 1.60 to 1.54 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.2%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: CNY 25B

- Cumulative retained earnings: CNY 118B

- Diluted shares, 10-year annual growth: -0.2%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -0.5%

- Per-share value change: CNY -0.06

- Per-share value, starting three-year median: CNY 1.60

- Per-share value, ending three-year median: CNY 1.54

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.2%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 31B

- Cumulative net income, 10 years: CNY 198B

- ROIC, first three-year median: 20.6%

- ROIC, last three-year median: 5.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.60

- FY2017: CNY 2.97

- FY2018: CNY 5.64

- FY2019: CNY 6.32

- FY2020: CNY 6.63

- FY2021: CNY 6.28

- FY2022: CNY 3.11

- FY2023: CNY 2.04

- FY2024: CNY 1.51

- FY2025: CNY 1.54

### accounting: pass

- Sloan accruals: -4.1%

- Receivables to sales index (DSRI): 1.13×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.29×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.20×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.3%

- FY2017: -1.2%

- FY2018: -4.2%

- FY2019: -4.0%

- FY2020: 0.2%

- FY2021: -0.3%

- FY2022: 2.5%

- FY2023: -3.9%

- FY2024: -4.2%

- FY2025: -4.1%

## Holders

## Price story

Down 57% since Dec 2021 · sales -9.7%

Story as of 2026-10-16T10:00:04.364Z; price observation 2026-10-15.

Price needs cash profits to shrink 5% a year for ten years

### Sales · FY2024–2025

sales -9.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 56B 

- FY2017: CNY 75B 

- FY2018: CNY 128B 

- FY2019: CNY 157B 

- FY2020: CNY 176B 

- FY2021: CNY 168B 

- FY2022: CNY 132B 

- FY2023: CNY 141B 

- FY2024: CNY 91B 

- FY2025: CNY 82B 

### Gross margin · FY2025

gross margin 22.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 32.5% 

- FY2017: 35.1% 

- FY2018: 36.7% 

- FY2019: 33.3% 

- FY2020: 28.8% 

- FY2021: 29.6% 

- FY2022: 20.6% 

- FY2023: 16.6% 

- FY2024: 21.7% 

- FY2025: 22.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in building materials; annual sales are CNY 82.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); FY2025: revenue 82210398000; grossProfit 18518440000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600585.SHG: Anhui Conch Cement Company Limited, together with its subsidiaries, manufactures, sells, and trades in clinker and cement products in China and internationally. The company provides construction and installation services for industrial purposes; logistic transportation agency and warehouse logistics services; financial supporting services; road freight transport; and mining and related services. It also manufactures and sells cement packaging products, concrete products, refractory materials, construction materials, nonmetallic mineral products, new materials, and chemical fibres; develops and sells profile and related products; exports clinker and cement products; processes and sells construction stones, and manufactured sand; sells aggregates; and constructs industrial and civil buildings, and highways. In addition, it is involved in investment and trading; machinery installation and maintenance; product testing and environmental inspection; technical services, development, and consulting; industrial product design; industrial waste storage and disposal; photovoltaic and wind power generation, and energy storage system development; renewable resources sales and renewable resource processing; research, development, and manufacture of automation machinery; and research and experimental development. Anhui Conch Cement Company Limited was incorporated in 1997 and is based in Wuhu, the People's Republic of China.

### Why customers stay

Margins ranged from 16.6% to 22.5% during 2023–25; it earns 16.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); FY2023: grossProfit / revenue = 16.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); FY2024: grossProfit / revenue = 21.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); FY2025: grossProfit / revenue = 22.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); 10-year return on capital observations [[2016,0.10909481297517934],[2017,0.20627912858795597],[2018,0.36373704782626054],[2019,0.4418912994252494],[2020,0.43252288788980475],[2021,0.330848705081295],[2022,0.11943376966862651],[2023,0.07752838840390225],[2024,0.05178197523474469],[2025,0.04100526530936833]]; median 0.16285644912829123. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); FY2016: growth capex 228780348; upkeep 4752715000; owner earnings 8529917000. Growth capex / owner earnings = 0.02682093483441867.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); FY2017: growth capex 0; upkeep 3656135224; owner earnings 17031710776. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); FY2018: growth capex 0; upkeep 4748521753; owner earnings 30019176247. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); FY2019: growth capex 3603155891; upkeep 5270963000; owner earnings 33592755000. Growth capex / owner earnings = 0.10725991038841559.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); FY2020: growth capex 4505438599; upkeep 5464748000; owner earnings 35158225000. Growth capex / owner earnings = 0.12814749888539595.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); FY2021: growth capex 0; upkeep 15202311138; owner earnings 24013992022.6. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); FY2023: growth capex 4755410138.279854; upkeep 9412041220.720146; owner earnings 8402293181.879854. Growth capex / owner earnings = 0.565965747129038.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); FY2024: growth capex 0; upkeep 11314257000; owner earnings 4755336938.8. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); FY2025: growth capex 0; upkeep 9636323000; owner earnings 6892577742.6. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); Dividend observations: [[2016,3285381832],[2017,3340635013],[2018,6931643820],[2019,8955821359],[2020,10598605158],[2021,11234521467],[2022,12612340138],[2023,7842968000],[2024,5949570000],[2025,5013207000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 52% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600585.SHG SharesStats.PercentInsiders = 51.970000000000006 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 5% yearly over ten years; actual growth was 0.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:18.674Z); Ten-year compound average after fade. Initial solved rate -0.08314943486669929. Price 17.51; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.2667774413219293 → FY2025 1.3061397336016647. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 17.04 per share

- 2016-11: CNY 18.14 per share

- 2016-12: CNY 16.96 per share

- 2017-01: CNY 19.93 per share

- 2017-02: CNY 20.48 per share

- 2017-03: CNY 20.74 per share

- 2017-04: CNY 21.20 per share

- 2017-05: CNY 21.33 per share

- 2017-06: CNY 22.73 per share

- 2017-07: CNY 24.27 per share

- 2017-08: CNY 23.48 per share

- 2017-09: CNY 24.97 per share

- 2017-10: CNY 26.12 per share

- 2017-11: CNY 31.32 per share

- 2017-12: CNY 29.33 per share

- 2018-01: CNY 34.43 per share

- 2018-02: CNY 32.52 per share

- 2018-03: CNY 32.17 per share

- 2018-04: CNY 33.94 per share

- 2018-05: CNY 34.24 per share

- 2018-06: CNY 33.48 per share

- 2018-07: CNY 38.53 per share

- 2018-08: CNY 37.13 per share

- 2018-09: CNY 36.79 per share

- 2018-10: CNY 32.73 per share

- 2018-11: CNY 31.81 per share

- 2018-12: CNY 29.28 per share

- 2019-01: CNY 32.47 per share

- 2019-02: CNY 35.45 per share

- 2019-03: CNY 38.18 per share

- 2019-04: CNY 39.49 per share

- 2019-05: CNY 39.55 per share

- 2019-06: CNY 41.50 per share

- 2019-07: CNY 39.53 per share

- 2019-08: CNY 39.43 per share

- 2019-09: CNY 41.34 per share

- 2019-10: CNY 42.16 per share

- 2019-11: CNY 45.80 per share

- 2019-12: CNY 54.80 per share

- 2020-01: CNY 48.00 per share

- 2020-02: CNY 54.86 per share

- 2020-03: CNY 55.10 per share

- 2020-04: CNY 59.96 per share

- 2020-05: CNY 56.80 per share

- 2020-06: CNY 52.91 per share

- 2020-07: CNY 61.42 per share

- 2020-08: CNY 60.91 per share

- 2020-09: CNY 55.26 per share

- 2020-10: CNY 50.84 per share

- 2020-11: CNY 56.50 per share

- 2020-12: CNY 51.62 per share

- 2021-01: CNY 50.44 per share

- 2021-02: CNY 53.34 per share

- 2021-03: CNY 51.22 per share

- 2021-04: CNY 49.03 per share

- 2021-05: CNY 49.03 per share

- 2021-06: CNY 41.05 per share

- 2021-07: CNY 35.40 per share

- 2021-08: CNY 39.96 per share

- 2021-09: CNY 40.80 per share

- 2021-10: CNY 38.08 per share

- 2021-11: CNY 36.22 per share

- 2021-12: CNY 40.30 per share

- 2022-01: CNY 39.21 per share

- 2022-02: CNY 40.30 per share

- 2022-03: CNY 39.49 per share

- 2022-04: CNY 39.96 per share

- 2022-05: CNY 36.83 per share

- 2022-06: CNY 35.28 per share

- 2022-07: CNY 32.50 per share

- 2022-08: CNY 31.92 per share

- 2022-09: CNY 28.81 per share

- 2022-10: CNY 24.28 per share

- 2022-11: CNY 28.59 per share

- 2022-12: CNY 27.38 per share

- 2023-01: CNY 29.42 per share

- 2023-02: CNY 30.68 per share

- 2023-03: CNY 28.25 per share

- 2023-04: CNY 26.88 per share

- 2023-05: CNY 25.06 per share

- 2023-06: CNY 23.74 per share

- 2023-07: CNY 27.14 per share

- 2023-08: CNY 25.68 per share

- 2023-09: CNY 26.03 per share

- 2023-10: CNY 24.19 per share

- 2023-11: CNY 23.00 per share

- 2023-12: CNY 22.56 per share

- 2024-01: CNY 23.11 per share

- 2024-02: CNY 23.94 per share

- 2024-03: CNY 22.28 per share

- 2024-04: CNY 22.98 per share

- 2024-05: CNY 24.01 per share

- 2024-06: CNY 23.59 per share

- 2024-07: CNY 24.17 per share

- 2024-08: CNY 20.92 per share

- 2024-09: CNY 26.14 per share

- 2024-10: CNY 26.75 per share

- 2024-11: CNY 25.66 per share

- 2024-12: CNY 23.78 per share

- 2025-01: CNY 24.90 per share

- 2025-02: CNY 23.26 per share

- 2025-03: CNY 24.29 per share

- 2025-04: CNY 24.08 per share

- 2025-05: CNY 23.23 per share

- 2025-06: CNY 21.47 per share

- 2025-07: CNY 23.55 per share

- 2025-08: CNY 24.35 per share

- 2025-09: CNY 23.22 per share

- 2025-10: CNY 23.19 per share

- 2025-11: CNY 22.85 per share

- 2025-12: CNY 21.86 per share

- 2026-01: CNY 24.52 per share

- 2026-02: CNY 25.56 per share

- 2026-03: CNY 23.16 per share

- 2026-04: CNY 21.13 per share

- 2026-05: CNY 20.15 per share

- 2026-06: CNY 16.95 per share

- 2026-07: CNY 18.56 per share

- 2026-08: CNY 17.65 per share

- 2026-09: CNY 17.51 per share

- 2026-10: CNY 17.23 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 24.45 per share, central CNY 33.77 per share, high CNY 39.20 per share

- FY2017: low CNY 36.96 per share, central CNY 50.93 per share, high CNY 59.07 per share

- FY2018: low CNY 66.35 per share, central CNY 91.95 per share, high CNY 106.85 per share

- FY2019: low CNY 98.85 per share, central CNY 135.68 per share, high CNY 157.12 per share

- FY2020: low CNY 112.74 per share, central CNY 154.14 per share, high CNY 178.25 per share

- FY2021: low CNY 108.10 per share, central CNY 145.36 per share, high CNY 167.68 per share

- FY2022: low CNY 69.35 per share, central CNY 77.13 per share, high CNY 87.48 per share

- FY2023: low CNY 56.53 per share, central CNY 62.49 per share, high CNY 70.43 per share

- FY2024: low CNY 25.12 per share, central CNY 26.72 per share, high CNY 28.85 per share

- FY2025: low CNY 22.05 per share, central CNY 23.45 per share, high CNY 25.31 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:01.842Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.