Why is Xinjiang Communications Construction Group Co., Ltd. ?
1
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 5.35% and Operating profit at 13.21% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 9.63% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 5.35% and Operating profit at 13.21% over the last 5 years
3
The company has declared negative results in Mar'2026 after 3 consecutive positive quarters
- RAW MATERIAL COST(Y) Grown by 34.06% (YoY)
- INVENTORY TURNOVER RATIO(HY) Lowest at 26.89 times
- OPERATING PROFIT(Q) Lowest at CNY -21.89 MM
4
With ROE of 11.56%, it has a expensive valuation with a 1.54 Price to Book Value
- Over the past year, while the stock has generated a return of -7.84%, its profits have risen by 44.1% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 1.3
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -7.84% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
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 Xinjiang Communications Construction Group Co., Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Xinjiang Communications Construction Group Co., Ltd.
-10.03%
-0.04
45.99%
China Shanghai Composite
19.22%
1.46
13.80%
Quality key factors
Factor
Value
Sales Growth (5y)
5.35%
EBIT Growth (5y)
13.21%
EBIT to Interest (avg)
2.22
Debt to EBITDA (avg)
6.71
Net Debt to Equity (avg)
1.30
Sales to Capital Employed (avg)
0.72
Tax Ratio
21.01%
Dividend Payout Ratio
28.57%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.19%
ROE (avg)
9.63%
Valuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.54
EV to EBIT
25.15
EV to EBITDA
22.13
EV to Capital Employed
1.26
EV to Sales
1.27
PEG Ratio
0.30
Dividend Yield
1.34%
ROCE (Latest)
5.02%
ROE (Latest)
11.56%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
7What is working for the Company
NET SALES(HY)
At CNY 4,196.87 MM has Grown at 33.44%
DEBTORS TURNOVER RATIO(HY)
Highest at 1.86 times
-18What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 34.06% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 26.89 times
OPERATING PROFIT(Q)
Lowest at CNY -21.89 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -4.21 %
PRE-TAX PROFIT(Q)
Lowest at CNY -26.11 MM
NET PROFIT(Q)
Lowest at CNY -13.25 MM
EPS(Q)
Lowest at CNY -0.02
Here's what is working for Xinjiang Communications Construction Group Co., Ltd.
Net Sales
At CNY 4,196.87 MM has Grown at 33.44%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Debtors Turnover Ratio
Highest at 1.86 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Xinjiang Communications Construction Group Co., Ltd.
Pre-Tax Profit
At CNY -26.11 MM has Fallen at -3,264.35%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -13.25 MM has Fallen at -78.85%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Operating Profit
Lowest at CNY -21.89 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at -4.21 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CNY -26.11 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 -13.25 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY -0.02
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
Inventory Turnover Ratio
Lowest at 26.89 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Raw Material Cost
Grown by 34.06% (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






