SHSE:601668

Stock Analysis Report

China State Construction Engineering

Executive Summary

China State Construction Engineering Corporation Limited operates as an integrated construction and real estate company in China.


Snowflake Analysis

6 star dividend payer and good value.


Similar Companies

Share Price & News

How has China State Construction Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 601668 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

601668

-0.2%

CN Construction

3.7%

CN Market


1 Year Return

-17.0%

601668

-17.6%

CN Construction

14.9%

CN Market

Return vs Industry: 601668 matched the CN Construction industry which returned -17.6% over the past year.

Return vs Market: 601668 underperformed the CN Market which returned 14.9% over the past year.


Shareholder returns

601668IndustryMarket
7 Day-3.7%-0.2%3.7%
30 Day-4.4%-1.6%6.9%
90 Day1.8%-0.5%14.5%
1 Year-14.6%-17.0%-16.0%-17.6%16.9%14.9%
3 Year-11.1%-17.3%-35.1%-37.8%-1.1%-5.1%
5 Year33.7%17.7%-25.0%-30.1%11.4%4.4%

Price Volatility Vs. Market

How volatile is China State Construction Engineering's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China State Construction Engineering undervalued compared to its fair value and its price relative to the market?

5.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 601668 (CN¥5.23) is trading above our estimate of fair value (CN¥2.83)

Significantly Below Fair Value: 601668 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 601668 is good value based on its PE Ratio (5.6x) compared to the Construction industry average (17.3x).

PE vs Market: 601668 is good value based on its PE Ratio (5.6x) compared to the CN market (34.7x).


Price to Earnings Growth Ratio

PEG Ratio: 601668 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 601668 is good value based on its PB Ratio (0.9x) compared to the CN Construction industry average (1.6x).


Next Steps

Future Growth

How is China State Construction Engineering forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 601668's forecast earnings growth (11.9% per year) is above the savings rate (3.2%).

Earnings vs Market: 601668's earnings (11.9% per year) are forecast to grow slower than the CN market (22.3% per year).

High Growth Earnings: 601668's earnings are forecast to grow, but not significantly.

Revenue vs Market: 601668's revenue (10.3% per year) is forecast to grow slower than the CN market (16.4% per year).

High Growth Revenue: 601668's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 601668's Return on Equity is forecast to be low in 3 years time (14.6%).


Next Steps

Past Performance

How has China State Construction Engineering performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 601668 has high quality earnings.

Growing Profit Margin: 601668's current net profit margins (2.9%) are lower than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: 601668's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: 601668's earnings growth over the past year (16.6%) exceeds its 5-year average (10.7% per year).

Earnings vs Industry: 601668 earnings growth over the past year (16.6%) exceeded the Construction industry 7.2%.


Return on Equity

High ROE: 601668's Return on Equity (13.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China State Construction Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: 601668's short term assets (CN¥1,381.8B) exceed its short term liabilities (CN¥1,074.4B).

Long Term Liabilities: 601668's short term assets (CN¥1,381.8B) exceed its long term liabilities (CN¥404.0B).


Debt to Equity History and Analysis

Debt Level: 601668's debt to equity ratio (106.7%) is considered high.

Reducing Debt: 601668's debt to equity ratio has increased from 106.2% to 106.7% over the past 5 years.

Debt Coverage: 601668's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 601668's interest payments on its debt are well covered by EBIT (36.8x coverage).


Balance Sheet

Inventory Level: 601668 has a high level of physical assets or inventory.

Debt Coverage by Assets: 601668's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

What is China State Construction Engineering's current dividend yield, its reliability and sustainability?

3.21%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%0.4%markettop25%1.8%industryaverage2.3%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: 601668's dividend (3.21%) is higher than the bottom 25% of dividend payers in the CN market (0.4%).

High Dividend: 601668's dividend (3.21%) is in the top 25% of dividend payers in the CN market (1.82%)


Stability and Growth of Payments

Stable Dividend: 601668's dividends per share have been stable in the past 10 years.

Growing Dividend: 601668's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.1%), 601668's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 601668's dividends in 3 years are forecast to be well covered by earnings (18.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Xuexuan Zheng (52yo)

0.08yrs

Tenure

0

Mr. Xuexuan Zheng serves as General Manager and President at China State Construction Engineering Corporation Limited since January 2020. He has been a Director at China State Construction Engineering Corp ...


Leadership Team

NamePositionTenureCompensationOwnership
Bai'an Li
VP & GM of Investment Department6.5yrsCN¥865.00kno data
Jinzhang Liu
Chief Economist & Deputy GM15.4yrsCN¥865.00kno data
Zeping Ma
VP & President of Infrastructure Operations0yrsCN¥835.00kno data
Xuexuan Zheng
President0.08yrsno datano data
Yunlin Wang
VP & CFO0.9yrsno datano data
Zhibing Mao
Chief Engineer8.6yrsno datano data
Guiqing Lu
Chief Economist0yrsno datano data
Keqing Xue
Secretary of the Board0.9yrsno datano data

3.7yrs

Average Tenure

55yo

Average Age

Experienced Management: 601668's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xuexuan Zheng
President0.08yrsno datano data
Zhibing Mao
Chief Engineer8.6yrsno datano data
Jie Liu
Chairman of Board of Supervisors0yrsno datano data
Lin Yang
Member of the Board of Supervisors0yrsno datano data
Jinao Zhang
Employee-Representative to the Board of Supervisors0yrsno datano data
Chunjin Yang
Independent Director5.7yrsCN¥66.00kno data
Hailong Yu
Independent Director5.7yrsCN¥60.00kno data
Chen Jia
Independent Director0yrsno datano data
Changhong Zheng
Independent Director0yrsno datano data
Naixiang Zhou
Chairman of the Board0yrsno datano data

5.7yrs

Average Tenure

65yo

Average Age

Experienced Board: 601668's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China State Construction Engineering Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China State Construction Engineering Corporation Limited
  • Ticker: 601668
  • Exchange: SHSE
  • Founded: 1982
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: CN¥219.533b
  • Shares outstanding: 41.98b
  • Website: https://www.cscec.com.cn

Number of Employees


Location

  • China State Construction Engineering Corporation Limited
  • No. 3 Building
  • China Fortune International Center
  • Beijing
  • 100029
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
601668SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYJul 2009
601668XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYJul 2009

Biography

China State Construction Engineering Corporation Limited operates as an integrated construction and real estate company in China. It provides general contracting services for building, municipal public, and highway works. The company’s projects include public works, offices, hotels, education works, sports facilities, housing, medical works, embassies, industrial works, national defense and military works, etc. It also invests in and develops real estate properties under the China Overseas Property and China Construction Property brands. In addition, the company undertakes various infrastructure projects comprising railways, highways, bridges, tunnels, airports, ports, power plants, etc. Further, it engages in architectural design, urban planning, project prospecting, and design for municipal utility works. The company was founded in 1982 and is based in Beijing, China. China State Construction Engineering Corporation Limited is a subsidiary of China Construction Engineering Corp. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 15:35
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.