Long Yuan Construction Hits Day Low of CNY 1.62 Amid Price Pressure

Long Yuan Construction Group Co., Ltd. experienced a significant decline today, with the stock dropping by 9.44% and reaching an intraday low of CNY 1.62. This performance stands in stark contrast to the China Shanghai Composite, which recorded a modest gain of 0.59% on the same day. Over the past week, Long Yuan Construction has shown a slight recovery with a 4.49% increase, but its longer-term performance remains concerning. The stock has decreased by 56.42% over the past year, while the broader market has seen a positive return of 1.14%. Year-to-date, the stock is down 38.26%, further highlighting its struggles in a challenging market environment. Financial metrics reveal a weak long-term fundamental strength, with a return on capital employed (ROCE) of just 3.08%. The company has faced declining net sales and operating profit over the last five years, alongside a high debt-to-equity ratio of 3.05. Additionally, the net profit for the latest quarter stands at CNY -326.84 million, reflecting a significant drop of 235.29%. Overall, Long Yuan Construction continues to face substantial challenges in its financial performance.