Why is Anhui Construction Engineering Group Corp. Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 6.92%
- Poor long term growth as Net Sales has grown by an annual rate of 12.51% and Operating profit at 11.31% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
Negative results in Mar 25
- ROCE(HY) Lowest at 12.55%
- INTEREST COVERAGE RATIO(Q) Lowest at 174.45
- OPERATING PROFIT(Q) Lowest at CNY 950.76 MM
3
With ROE of 18.14%, it has a expensive valuation with a 0.73 Price to Book Value
- Over the past year, while the stock has generated a return of -2.21%, its profits have fallen by -1.6%
- At the current price, the company has a high dividend yield of 5.8
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -2.21% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Anhui Construction Engineering Group Corp. Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Anhui Construction Engineering Group Corp. Ltd.
-100.0%
0.05
19.80%
China Shanghai Composite
15.19%
1.01
14.58%
Quality key factors
Factor
Value
Sales Growth (5y)
12.51%
EBIT Growth (5y)
11.31%
EBIT to Interest (avg)
1.68
Debt to EBITDA (avg)
11.40
Net Debt to Equity (avg)
5.75
Sales to Capital Employed (avg)
1.09
Tax Ratio
23.46%
Dividend Payout Ratio
34.46%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.92%
ROE (avg)
19.00%
Valuation Key Factors 
Factor
Value
P/E Ratio
4
Industry P/E
Price to Book Value
0.73
EV to EBIT
17.07
EV to EBITDA
15.50
EV to Capital Employed
0.96
EV to Sales
0.85
PEG Ratio
NA
Dividend Yield
5.79%
ROCE (Latest)
5.65%
ROE (Latest)
18.14%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
4What is working for the Company
NET SALES(HY)
At CNY 56,918.01 MM has Grown at 27.33%
CASH AND EQV(HY)
Highest at CNY 34,335.5 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 6%
-6What is not working for the Company
ROCE(HY)
Lowest at 12.55%
INTEREST COVERAGE RATIO(Q)
Lowest at 174.45
OPERATING PROFIT(Q)
Lowest at CNY 950.76 MM
PRE-TAX PROFIT(Q)
Lowest at CNY 506.83 MM
Here's what is working for Anhui Construction Engineering Group Corp. Ltd.
Net Sales
At CNY 56,918.01 MM has Grown at 27.33%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Cash and Eqv
Highest at CNY 34,335.5 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 6%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Anhui Construction Engineering Group Corp. Ltd.
Interest Coverage Ratio
Lowest at 174.45
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 950.76 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Pre-Tax Profit
Lowest at CNY 506.83 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)






