Elevator Pitch
Investing in the low cost leader in a commodity business tends to be rewarding, and Hong Kong-listed Mainland China cement producer Anhui Conch Cement (OTCPK:AHCHY) (OTCPK:AHCHF) [914:HK] is one good example. Based on my estimates, Anhui Conch Cement has delivered five-year and 10-year total shareholder return (share price appreciation and dividends) CAGRs of approximately 16% and 14% respectively.
Anhui Conch Cement trades at 8.3 times consensus forward next twelve months P/E which represents a discount to its historical seven-year average forward P/E of approximately 10 times. The stock also