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

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 23.57% and Operating profit at 21.33% 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 -14.16%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 8 consecutive quarters
NET PROFIT(Q) At CNY 69.23 MM has Fallen at -95.02%
INTEREST(HY) At CNY 1,151.76 MM has Grown at 5.35%
ROCE(HY) Lowest at 3.8%

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 -13.38%, its profits have fallen by -32.5%
At the current price, the company has a high dividend yield of 3.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.38% 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 Shaanxi Construction Engineering Group Corp., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shaanxi Construction Engineering Group Corp., Ltd.

-20.88%

-0.15

19.91%

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)

23.57%

EBIT Growth (5y)

21.33%

EBIT to Interest (avg)

3.36

Debt to EBITDA (avg)

5.98

Net Debt to Equity (avg)

1.66

Sales to Capital Employed (avg)

1.86

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

10.73

EV to EBITDA

9.36

EV to Capital Employed

0.72

EV to Sales

0.38

PEG Ratio

Dividend Yield

3.67%

ROCE (Latest)

6.69%

ROE (Latest)

7.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

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 -3,330.11 MM

CASH AND EQV(HY)

Highest at CNY 55,078.7 MM

-29What is not working for the Company

NET PROFIT(Q)

At CNY 69.23 MM has Fallen at -95.02%

INTEREST(HY)

At CNY 1,151.76 MM has Grown at 5.35%

ROCE(HY)

Lowest at 3.8%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.5 times

RAW MATERIAL COST(Y)

Grown by 15.49% (YoY

NET SALES(Q)

Fallen at -14.16%

OPERATING PROFIT(Q)

Lowest at CNY 722.52 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 199.15 MM

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

Operating Cash Flow

Highest at CNY -3,330.11 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 55,078.7 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 Shaanxi Construction Engineering Group Corp., Ltd.

Pre-Tax Profit

At CNY 199.15 MM has Fallen at -88.14%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 69.23 MM has Fallen at -95.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 1,151.76 MM has Grown at 5.35%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 0.5 times 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

Fallen at -14.16%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 722.52 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 199.15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Raw Material Cost

Grown by 15.49% (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