China State Construction Engineering Corp. Ltd. (601668) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

China State Construction Engineering Corp. Ltd.

Why is China State Construction Engineering Corp. Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 6.86% and Operating profit at 0.39% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 19.30% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.86% and Operating profit at 0.39% over the last 5 years

Negative results in Sep 25

ROCE(HY) Lowest at 9.61%
INTEREST COVERAGE RATIO(Q) Lowest at 316.2
RAW MATERIAL COST(Y) Grown by 5.97% (YoY)

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.86% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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 China State Construction Engineering Corp. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

China State Construction Engineering Corp. Ltd.

-10.46%

-0.61

16.55%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.86%

EBIT Growth (5y)

0.39%

EBIT to Interest (avg)

6.15

Debt to EBITDA (avg)

3.98

Net Debt to Equity (avg)

1.22

Sales to Capital Employed (avg)

1.67

Tax Ratio

22.59%

Dividend Payout Ratio

24.44%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

12.70%

ROE (avg)

19.30%

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

0.47

EV to EBIT

8.16

EV to EBITDA

7.05

EV to Capital Employed

0.76

EV to Sales

0.36

PEG Ratio

Dividend Yield

5.07%

ROCE (Latest)

9.28%

ROE (Latest)

13.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 59,100.42 MM

CASH AND EQV(HY)

Highest at CNY 728,565.35 MM

-11What is not working for the Company

ROCE(HY)

Lowest at 9.61%

INTEREST COVERAGE RATIO(Q)

Lowest at 316.2

RAW MATERIAL COST(Y)

Grown by 5.97% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.31 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.12 times

NET SALES(Q)

Lowest at CNY 449,912.45 MM

OPERATING PROFIT(Q)

Lowest at CNY 16,439.96 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.65 %

PRE-TAX PROFIT(Q)

Lowest at CNY 11,213.55 MM

Here's what is working for China State Construction Engineering Corp. Ltd.

Operating Cash Flow

Highest at CNY 59,100.42 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 728,565.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for China State Construction Engineering Corp. Ltd.

Interest Coverage Ratio

Lowest at 316.2

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 449,912.45 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 16,439.96 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.65 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 11,213.55 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 2.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.12 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 5.97% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales