ScoreWhy is Guangdong Construction Engineering Group Co., Ltd. ?
1
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 39.38% and Operating profit at 19.41% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 9.04% signifying low profitability per unit of shareholders funds
2
With a fall in Net Sales of -45.33%, the company declared Very Negative results in Mar 26
- OPERATING CASH FLOW(Y) Lowest at CNY -1,987.17 MM
- INTEREST(HY) At CNY 433.54 MM has Grown at 5.58%
- ROCE(HY) Lowest at 7.58%
3
With ROE of 8.26%, it has a very expensive valuation with a 0.28 Price to Book Value
- Over the past year, while the stock has generated a return of -12.03%, its profits have fallen by -4.7%
- At the current price, the company has a high dividend yield of 12.9
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -12.03% 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 ReportHow 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 Guangdong Construction Engineering Group Co., Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Guangdong Construction Engineering Group Co., Ltd.
-12.03%
-0.71
31.12%
China Shanghai Composite
16.78%
1.20
13.96%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
39.38%
EBIT Growth (5y)
19.41%
EBIT to Interest (avg)
2.03
Debt to EBITDA (avg)
6.25
Net Debt to Equity (avg)
1.29
Sales to Capital Employed (avg)
1.48
Tax Ratio
17.43%
Dividend Payout Ratio
47.39%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.45%
ROE (avg)
9.04%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
3
Industry P/E
Price to Book Value
0.28
EV to EBIT
11.53
EV to EBITDA
7.61
EV to Capital Employed
0.71
EV to Sales
0.38
PEG Ratio
NA
Dividend Yield
12.86%
ROCE (Latest)
6.19%
ROE (Latest)
8.26%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.44% (YoY
-24What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY -1,987.17 MM
INTEREST(HY)
At CNY 433.54 MM has Grown at 5.58%
ROCE(HY)
Lowest at 7.58%
INTEREST COVERAGE RATIO(Q)
Lowest at 164.33
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.86 times
NET SALES(Q)
Lowest at CNY 13,959.77 MM
OPERATING PROFIT(Q)
Lowest at CNY 354.15 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 2.54 %
PRE-TAX PROFIT(Q)
Lowest at CNY 175.06 MM
NET PROFIT(Q)
Lowest at CNY 111.87 MM
EPS(Q)
Lowest at CNY 0.03
Here's what is working for Guangdong Construction Engineering Group Co., Ltd.
Raw Material Cost
Fallen by 0.44% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Guangdong Construction Engineering Group Co., Ltd.
Net Sales
At CNY 13,959.77 MM has Fallen at -18.98%
over average net sales of the previous four periods of CNY 17,230.03 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Net Profit
At CNY 111.87 MM has Fallen at -59.65%
over average net sales of the previous four periods of CNY 277.22 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Operating Cash Flow
Lowest at CNY -1,987.17 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Interest Coverage Ratio
Lowest at 164.33
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
At CNY 175.06 MM has Fallen at -54.96%
over average net sales of the previous four periods of CNY 388.7 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Interest
At CNY 433.54 MM has Grown at 5.58%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Sales
Lowest at CNY 13,959.77 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CNY MM)
Operating Profit
Lowest at CNY 354.15 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 2.54 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY 175.06 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY 111.87 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY 0.03
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Debtors Turnover Ratio
Lowest at 0.86 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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