New Risk • May 13
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.6% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.9x net interest cover). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 19% per year over the past 5 years. New Risk • May 01
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 2.4% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (2.4% operating cash flow to total debt). Earnings have declined by 12% per year over the past 5 years. Minor Risk Profit margins are more than 30% lower than last year (0.2% net profit margin). Annuncio • Apr 30
Shaanxi Construction Engineering Group Corporation Limited, Annual General Meeting, May 27, 2026 Shaanxi Construction Engineering Group Corporation Limited, Annual General Meeting, May 27, 2026, at 10:00 China Standard Time. Location: The Company Headquarters' Meeting Room, Xi'an, Shaanxi China New Risk • Apr 13
New major risk - Revenue and earnings growth Earnings have declined by 5.3% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 5.3% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.8% net profit margin). Annuncio • Mar 30
Shaanxi Construction Engineering Group Corporation Limited to Report Q1, 2026 Results on Apr 30, 2026 Shaanxi Construction Engineering Group Corporation Limited announced that they will report Q1, 2026 results on Apr 30, 2026 Annuncio • Dec 26
Shaanxi Construction Engineering Group Corporation Limited to Report Fiscal Year 2025 Results on Apr 30, 2026 Shaanxi Construction Engineering Group Corporation Limited announced that they will report fiscal year 2025 results on Apr 30, 2026 Reported Earnings • Nov 02
Third quarter 2025 earnings released: EPS: CN¥0.019 (vs CN¥0.37 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.019 (down from CN¥0.37 in 3Q 2024). Revenue: CN¥29.9b (down 14% from 3Q 2024). Net income: CN¥69.3m (down 95% from 3Q 2024). Profit margin: 0.2% (down from 4.0% in 3Q 2024). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 8.4% growth forecast for the Construction industry in China. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Annuncio • Sep 30
Shaanxi Construction Engineering Group Corporation Limited to Report Q3, 2025 Results on Oct 31, 2025 Shaanxi Construction Engineering Group Corporation Limited announced that they will report Q3, 2025 results on Oct 31, 2025 New Risk • Sep 14
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. This is currently the only risk that has been identified for the company. Annuncio • Jun 30
Shaanxi Construction Engineering Group Corporation Limited to Report First Half, 2025 Results on Aug 30, 2025 Shaanxi Construction Engineering Group Corporation Limited announced that they will report first half, 2025 results on Aug 30, 2025 New Risk • May 14
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (22% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Apr 30
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.80 (down from CN¥1.01 in FY 2023). Revenue: CN¥151.1b (down 16% from FY 2023). Net income: CN¥2.96b (down 25% from FY 2023). Profit margin: 2.0% (down from 2.2% in FY 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 7.6%. Earnings per share (EPS) also missed analyst estimates by 24%. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 6.8% growth forecast for the Construction industry in China. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 11% per year, which means it is performing significantly worse than earnings. Annuncio • Apr 30
Shaanxi Construction Engineering Group Corporation Limited, Annual General Meeting, Jun 26, 2025 Shaanxi Construction Engineering Group Corporation Limited, Annual General Meeting, Jun 26, 2025, at 10:00 China Standard Time. Location: The Company Headquarters' Meeting Room, Xi'an, Shaanxi China Annuncio • Mar 28
Shaanxi Construction Engineering Group Corporation Limited to Report Q1, 2025 Results on Apr 30, 2025 Shaanxi Construction Engineering Group Corporation Limited announced that they will report Q1, 2025 results on Apr 30, 2025 Annuncio • Dec 27
Shaanxi Construction Engineering Group Corporation Limited to Report Fiscal Year 2024 Results on Apr 30, 2025 Shaanxi Construction Engineering Group Corporation Limited announced that they will report fiscal year 2024 results on Apr 30, 2025 Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥4.82, the stock trades at a trailing P/E ratio of 4.7x. Average trailing P/E is 25x in the Construction industry in China. Total returns to shareholders of 25% over the past three years. Annuncio • Sep 30
Shaanxi Construction Engineering Group Corporation Limited to Report Q3, 2024 Results on Oct 31, 2024 Shaanxi Construction Engineering Group Corporation Limited announced that they will report Q3, 2024 results on Oct 31, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥4.17, the stock trades at a trailing P/E ratio of 4.6x. Average trailing P/E is 20x in the Construction industry in China. Total loss to shareholders of 18% over the past three years. Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: CN¥0.27 (vs CN¥0.36 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.27 (down from CN¥0.36 in 2Q 2023). Revenue: CN¥39.2b (down 20% from 2Q 2023). Net income: CN¥1.03b (down 22% from 2Q 2023). Profit margin: 2.6% (down from 2.7% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 22% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Construction industry in China. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 15% per year. Annuncio • Aug 16
Shaanxi Construction Engineering Group Corporation Limited (SHSE:600248) agreed to acquire remaining 44.08% stake in Shaanxi Construction Engineering Sixth Construction Group Co., Ltd. from Changan Huitong Asset Management Co., Ltd. for Approximately CNY 500 million. Shaanxi Construction Engineering Group Corporation Limited (SHSE:600248) agreed to acquire remaining 44.08% stake in Shaanxi Construction Engineering Sixth Construction Group Co., Ltd. from Changan Huitong Asset Management Co., Ltd. for Approximately CNY 500 million on August 14, 2024. A cash consideration of CNY 508.33 million will be paid by Shaanxi Construction Engineering Group Corporation Limited. As part of consideration, CNY 508.33 million is paid towards common equity of Shaanxi Construction Engineering Sixth Construction Group Co., Ltd. Upon completion, Shaanxi Construction Engineering Group Corporation Limited will own 100% stake in Shaanxi Construction Engineering Sixth Construction Group Co., Ltd.
As of March 31, 2023, Shaanxi Construction Engineering Sixth Construction Group Co., Ltd. reported total assets of CNY 19.43 billion and total common equity of CNY 2.09 billion.
The transaction is subject to approval by regulatory board / committee. Annuncio • Jun 28
Shaanxi Construction Engineering Group Corporation Limited to Report First Half, 2024 Results on Aug 31, 2024 Shaanxi Construction Engineering Group Corporation Limited announced that they will report first half, 2024 results on Aug 31, 2024 Board Change • Jun 25
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 2 experienced directors. No highly experienced directors. Independent Director Shihui Guo is the most experienced director on the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Board Change • Jun 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. Independent Director Weiqiao Yang was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. New Risk • May 12
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (33% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Shareholders have been diluted in the past year (2.2% increase in shares outstanding). Annuncio • May 01
Shaanxi Construction Engineering Group Corporation Limited, Annual General Meeting, May 30, 2024 Shaanxi Construction Engineering Group Corporation Limited, Annual General Meeting, May 30, 2024, at 10:00 China Standard Time. Location: The Company Headquarters' Meeting Room, Xi'an, Shaanxi China Reported Earnings • Apr 30
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥1.01 (up from CN¥0.97 in FY 2022). Revenue: CN¥180.6b (down 4.7% from FY 2022). Net income: CN¥3.96b (up 10% from FY 2022). Profit margin: 2.2% (up from 1.9% in FY 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 6.0%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Construction industry in China. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 3% per year. Annuncio • Mar 29
Shaanxi Construction Engineering Group Corporation Limited to Report Q1, 2024 Results on Apr 30, 2024 Shaanxi Construction Engineering Group Corporation Limited announced that they will report Q1, 2024 results on Apr 30, 2024 Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.24 (vs CN¥0.29 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.24 (down from CN¥0.29 in 3Q 2022). Revenue: CN¥40.2b (down 1.5% from 3Q 2022). Net income: CN¥887.5m (down 17% from 3Q 2022). Profit margin: 2.2% (down from 2.6% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Construction industry in China. Reported Earnings • Aug 31
Second quarter 2023 earnings released: EPS: CN¥0.36 (vs CN¥0.35 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.36 (up from CN¥0.35 in 2Q 2022). Revenue: CN¥48.7b (down 9.1% from 2Q 2022). Net income: CN¥1.33b (up 2.0% from 2Q 2022). Profit margin: 2.7% (up from 2.4% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Construction industry in China. Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥7.45, the stock trades at a trailing P/E ratio of 7.6x. Average trailing P/E is 23x in the Construction industry in China. Total returns to shareholders of 42% over the past year. Reported Earnings • Apr 29
First quarter 2023 earnings released: EPS: CN¥0.22 (vs CN¥0.21 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.22 (up from CN¥0.21 in 1Q 2022). Revenue: CN¥35.5b (up 6.1% from 1Q 2022). Net income: CN¥817.4m (up 6.1% from 1Q 2022). Profit margin: 2.3% (in line with 1Q 2022). Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥5.60, the stock trades at a trailing P/E ratio of 6.7x. Average trailing P/E is 25x in the Construction industry in China. Total returns to shareholders of 5.0% over the past year. Reported Earnings • Oct 29
Third quarter 2022 earnings released: EPS: CN¥0.29 (vs CN¥0.44 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.29 (down from CN¥0.44 in 3Q 2021). Revenue: CN¥40.8b (flat on 3Q 2021). Net income: CN¥1.06b (down 25% from 3Q 2021). Profit margin: 2.6% (down from 3.5% in 3Q 2021). Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Construction industry in China. Reported Earnings • Aug 31
Second quarter 2022 earnings released: EPS: CN¥0.35 (vs CN¥0.35 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.35. Revenue: CN¥53.6b (up 14% from 2Q 2021). Net income: CN¥1.30b (up 3.9% from 2Q 2021). Profit margin: 2.4% (down from 2.7% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 22%, compared to a 21% growth forecast for the Construction industry in China. Valuation Update With 7 Day Price Move • May 30
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥5.86, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 10x in the Construction industry in China. Total returns to shareholders of 21% over the past year. Reported Earnings • Apr 28
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: CN¥0.21. Revenue: CN¥33.5b (up 10% from 1Q 2021). Net income: CN¥770.2m (up 4.1% from 1Q 2021). Profit margin: 2.3% (down from 2.4% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.6%. Earnings per share (EPS) missed analyst estimates by 31%. Over the next year, revenue is forecast to grow 13%, compared to a 15% growth forecast for the industry in China. Valuation Update With 7 Day Price Move • Apr 21
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥4.83, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 11x in the Construction industry in China. Total returns to shareholders of 17% over the past year. Valuation Update With 7 Day Price Move • Feb 28
Investor sentiment deteriorated over the past week After last week's 20% share price decline to CN¥5.74, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 12x in the Construction industry in China. Total returns to shareholders of 48% over the past year. Valuation Update With 7 Day Price Move • Feb 08
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥6.17, the stock trades at a trailing P/E ratio of 4.9x. Average trailing P/E is 21x in the Construction industry in China. Total returns to shareholders of 68% over the past year. Valuation Update With 7 Day Price Move • Dec 21
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥5.23, the stock trades at a trailing P/E ratio of 4.2x. Average trailing P/E is 21x in the Construction industry in China. Total returns to shareholders of 17% over the past year. Valuation Update With 7 Day Price Move • Oct 27
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥4.03, the stock trades at a trailing P/E ratio of 3.6x. Average trailing P/E is 17x in the Construction industry in China. Reported Earnings • Aug 30
Second quarter 2021 earnings released: EPS CN¥0.35 (vs CN¥0.26 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: CN¥46.8b (up 39% from 2Q 2020). Net income: CN¥1.25b (up 143% from 2Q 2020). Profit margin: 2.7% (up from 1.5% in 2Q 2020). The increase in margin was driven by higher revenue. Reported Earnings • Apr 29
Full year 2020 earnings released: EPS CN¥0.90 (vs CN¥0.61 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥127.7b (up 32% from FY 2019). Net income: CN¥2.83b (up 130% from FY 2019). Profit margin: 2.2% (up from 1.3% in FY 2019). The increase in margin was driven by higher revenue.