Power Construction Corporation of China, Ltd. (601669) 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

Power Construction Corporation of China, Ltd.

Why is Power Construction Corporation of China, Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.38%

Poor long term growth as Net Sales has grown by an annual rate of 11.54% and Operating profit at 3.67% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Negative results in Sep 25

ROCE(HY) Lowest at 7.63%
INTEREST COVERAGE RATIO(Q) Lowest at 157.29
RAW MATERIAL COST(Y) Grown by 6.28% (YoY)

With ROE of 10.14%, it has a very expensive valuation with a 0.66 Price to Book Value

Over the past year, while the stock has generated a return of 12.93%, its profits have fallen by -13.2%
At the current price, the company has a high dividend yield of 2.3

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 Power Construction Corporation of China, Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Power Construction Corporation of China, Ltd.

4.84%

0.15

31.34%

China Shanghai Composite

21.43%

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)

8.20%

EBIT Growth (5y)

2.12%

EBIT to Interest (avg)

2.00

Debt to EBITDA (avg)

8.97

Net Debt to Equity (avg)

3.25

Sales to Capital Employed (avg)

0.91

Tax Ratio

20.71%

Dividend Payout Ratio

20.00%

Pledged Shares

Institutional Holding

ROCE (avg)

5.38%

ROE (avg)

13.44%

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

0.37

EV to EBIT

20.28

EV to EBITDA

12.21

EV to Capital Employed

0.85

EV to Sales

0.82

PEG Ratio

Dividend Yield

3.96%

ROCE (Latest)

4.20%

ROE (Latest)

8.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

OPERATING CASH FLOW(Y)

Highest at CNY 28,301.8 MM

CASH AND EQV(HY)

Highest at CNY 246,995.27 MM

-14What is not working for the Company

ROCE(HY)

Lowest at 6.47%

RAW MATERIAL COST(Y)

Grown by 6.48% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 25.11 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.7 times

OPERATING PROFIT(Q)

Lowest at CNY 6,298.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.34 %

PRE-TAX PROFIT(Q)

Lowest at CNY 3,151.21 MM

NET PROFIT(Q)

Lowest at CNY 1,951.53 MM

EPS(Q)

Lowest at CNY 0.11

Here's what is working for Power Construction Corporation of China, Ltd.

Operating Cash Flow

Highest at CNY 28,301.8 MM and Grown

In each year 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 246,995.27 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 Power Construction Corporation of China, Ltd.

Operating Profit

Lowest at CNY 6,298.66 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 3,151.21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 1,951.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.11

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 25.11 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 1.7 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 6.48% (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