Anhui Construction Engineering Group Corp. Ltd. (600502) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Anhui Construction Engineering Group Corp. Ltd.

Why is Anhui Construction Engineering Group Corp. Ltd. ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

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

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

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 6.42%, its profits have fallen by -1.6%
At the current price, the company has a high dividend yield of 5.8

Underperformed the market in the last 1 year

The stock has generated a return of 6.42% in the last 1 year, much lower than market (China Shanghai Composite) returns of 24.30%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Anhui Construction Engineering Group Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Anhui Construction Engineering Group Corp. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Anhui Construction Engineering Group Corp. Ltd.

6.42%

-0.01

18.79%

China Shanghai Composite

24.3%

1.73

14.01%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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)

1.07

Tax Ratio

23.46%

Dividend Payout Ratio

34.46%

Pledged Shares

Institutional Holding

ROCE (avg)

6.92%

ROE (avg)

19.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

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

Dividend Yield

5.79%

ROCE (Latest)

5.65%

ROE (Latest)

18.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

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 periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 6%

in the last five Semi-Annual periods

MOJO 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 periods

MOJO 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 periods

MOJO 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 periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)