Shaanxi Construction Engineering Group Corp., Ltd. (600248) 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

Shaanxi Construction Engineering Group Corp., Ltd.

Why is Shaanxi Construction Engineering Group 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 79.35% and Operating profit at 91.03% 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 18.43% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -13%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 8 consecutive quarters
NET PROFIT(HY) At CNY 403.24 MM has Grown at -72.77%
ROCE(HY) Lowest at 11.8%
INVENTORY TURNOVER RATIO(HY) Lowest at 41.58%

With ROE of 7.82%, it has a very attractive valuation with a 0.40 Price to Book Value

Over the past year, while the stock has generated a return of -20.43%, its profits have fallen by -32.5%
At the current price, the company has a high dividend yield of 3.7

Below par performance in long term as well as near term

Along with generating -20.43% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Shaanxi Construction Engineering Group Corp., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shaanxi Construction Engineering Group Corp., Ltd.

-20.43%

-0.12

21.55%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

79.35%

EBIT Growth (5y)

91.03%

EBIT to Interest (avg)

3.36

Debt to EBITDA (avg)

5.98

Net Debt to Equity (avg)

1.66

Sales to Capital Employed (avg)

1.96

Tax Ratio

15.21%

Dividend Payout Ratio

17.45%

Pledged Shares

Institutional Holding

ROCE (avg)

10.71%

ROE (avg)

18.43%

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

0.40

EV to EBIT

10.72

EV to EBITDA

9.35

EV to Capital Employed

0.72

EV to Sales

0.38

PEG Ratio

Dividend Yield

3.69%

ROCE (Latest)

6.69%

ROE (Latest)

7.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -24.45% (YoY

-21What is not working for the Company

NET PROFIT(HY)

At CNY 403.24 MM has Grown at -72.77%

ROCE(HY)

Lowest at 11.8%

INVENTORY TURNOVER RATIO(HY)

Lowest at 41.58%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.56%

NET SALES(Q)

Lowest at CNY 23,117.83 MM

PRE-TAX PROFIT(Q)

Fallen at -32.8%

Here's what is working for Shaanxi Construction Engineering Group Corp., Ltd.

Raw Material Cost

Fallen by -24.45% (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 Shaanxi Construction Engineering Group Corp., Ltd.

Net Profit

At CNY 403.24 MM has Grown at -72.77%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 23,117.83 MM has Fallen at -16.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 41.58% and Fallen

In each half year 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 0.56% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at CNY 23,117.83 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

Fallen at -32.8%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)