China Communications Construction (SEHK:1800) - Share price, News & Analysis

1800 fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	1/6
Past Performance	4/6
Financial Health	3/6
Dividends	3/6

1800 Stock Overview

China Communications Construction Company Limited, together with its subsidiaries, engages in the infrastructure construction, design, and dredging businesses.

Rewards

Trading at 51.5% below our estimate of its fair value

Earnings are forecast to grow 11.1% per year

Earnings grew by 3.7% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 6.24% is not well covered by earnings

China Communications Construction Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Communications Construction
Historical stock prices
Current Share Price	HK$3.97
52 Week High	HK$5.17
52 Week Low	HK$3.57
Beta	0.22
1 Month Change	-10.18%
3 Month Change	-2.93%
1 Year Change	5.03%
3 Year Change	-43.21%
5 Year Change	-60.54%
Change since IPO	-37.28%

Recent News & Updates

Jun 19

China Communications Construction's (HKG:1800) Dividend Will Be Increased To HK$0.25

The board of China Communications Construction Company Limited ( HKG:1800 ) has announced that it will be increasing...

Jun 09

Is China Communications Construction Company Limited (HKG:1800) Trading At A 48% Discount?

Today we will run through one way of estimating the intrinsic value of China Communications Construction Company...

May 22

China Communications Construction (HKG:1800) Is Paying Out A Larger Dividend Than Last Year

China Communications Construction Company Limited ( HKG:1800 ) has announced that it will be increasing its dividend on...

Shareholder Returns

	1800	HK Construction	HK Market
7D	-4.8%	-0.5%	2.1%
1Y	5.0%	1.9%	-23.3%

Return vs Industry: 1800 exceeded the Hong Kong Construction industry which returned 1.9% over the past year.

Return vs Market: 1800 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1800's price volatile compared to industry and market?
1800 volatility
1800 Average Weekly Movement	4.1%
Construction Industry Average Movement	7.0%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 1800 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1800's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2006	133,294	Haihuai Wang	https://ccccltd.cn

China Communications Construction Company Limited, together with its subsidiaries, engages in the infrastructure construction, design, and dredging businesses. The company is involved in the construction of various infrastructure projects, including port, waterway, land reclamation, river basin management, road and bridge, railway, urban rail transit, municipal infrastructure, and construction and environmental protection projects; and provision of infrastructure design services, such as consulting and planning, feasibility study, survey and design, engineering consultancy, engineering measurement and technical research, project management, project supervision, general project contracting, compilation of industry standards and codes, etc. It also provides dredging services primarily comprising infrastructure dredging, maintenance dredging, environmental dredging, land reclamation, and watershed management, as well as supports projects related to dredging and land reclamation. In addition, the company engages in the manufacture of road construction machinery; trading of motor vehicle spare parts and machinery; maintenance and design of port machinery; trading of construction materials and equipment; and fund management and financial leasing services.

China Communications Construction Fundamentals Summary

How do China Communications Construction's earnings and revenue compare to its market cap?
1800 fundamental statistics
Market Cap	CN¥120.91b
Earnings (TTM)	CN¥17.23b
Revenue (TTM)	CN¥705.81b

3.2x

P/E Ratio

0.1x

P/S Ratio

Is 1800 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1800 income statement (TTM)
Revenue	CN¥705.81b
Cost of Revenue	CN¥618.15b
Gross Profit	CN¥87.65b
Other Expenses	CN¥70.42b
Earnings	CN¥17.23b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.07
Gross Margin	12.42%
Net Profit Margin	2.44%
Debt/Equity Ratio	109.0%

How did 1800 perform over the long term?

See historical performance and comparison

Dividends

6.2%

Current Dividend Yield

19%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 1800 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1800?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1800. This is calculated by dividing 1800's market cap by their current preferred multiple.
What is 1800's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥120.91b

1800 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.8x
Enterprise Value/EBITDA	12.2x
PEG Ratio	0.3x

Price to Earnings Ratio vs Peers

How does 1800's PE Ratio compare to its peers?

1800 PE Ratio vs Peers

The above table shows the PE ratio for 1800 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	5.6x

Forward PE

Price-To-Earnings vs Peers: 1800 is good value based on its Price-To-Earnings Ratio (3.2x) compared to the peer average (5.6x).

Price to Earnings Ratio vs Industry

How does 1800's PE Ratio compare vs other companies in the Hong Kong Construction Industry?

Price-To-Earnings vs Industry: 1800 is good value based on its Price-To-Earnings Ratio (3.2x) compared to the Hong Kong Construction industry average (10.8x)

Price to Earnings Ratio vs Fair Ratio

What is 1800's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1800 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.2x
Fair PE Ratio	9.1x

Price-To-Earnings vs Fair Ratio: 1800 is good value based on its Price-To-Earnings Ratio (3.2x) compared to the estimated Fair Price-To-Earnings Ratio (9.1x).

Share Price vs Fair Value

What is the Fair Price of 1800 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1800 (HK$3.97) is trading below our estimate of fair value (HK$8.19)

Significantly Below Fair Value: 1800 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 1800 is good value based on its PEG Ratio (0.3x)

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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1800's forecast earnings growth (11.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 1800's earnings (11.1% per year) are forecast to grow slower than the Hong Kong market (17% per year).

High Growth Earnings: 1800's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1800's revenue (8.1% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 1800's revenue (8.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 1800's Return on Equity is forecast to be low in 3 years time (7.3%).

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Past Performance

How has China Communications Construction performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-1.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1800 has high quality earnings.

Growing Profit Margin: 1800's current net profit margins (2.4%) are higher than last year (2.4%).

Past Earnings Growth Analysis

Earnings Trend: 1800's earnings have declined by 1.6% per year over the past 5 years.

Accelerating Growth: 1800's earnings growth over the past year (3.7%) exceeds its 5-year average (-1.6% per year).

Earnings vs Industry: 1800 earnings growth over the past year (3.7%) exceeded the Construction industry 0.5%.

Return on Equity

High ROE: 1800's Return on Equity (6%) is considered low.

Discover strong past performing companies

Financial Health

How is China Communications Construction's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1800's short term assets (CN¥617.1B) do not cover its short term liabilities (CN¥647.9B).

Long Term Liabilities: 1800's short term assets (CN¥617.1B) exceed its long term liabilities (CN¥427.0B).

Debt to Equity History and Analysis

Debt Level: 1800's net debt to equity ratio (76.8%) is considered high.

Reducing Debt: 1800's debt to equity ratio has reduced from 142% to 109% over the past 5 years.

Debt Coverage: 1800's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1800's interest payments on its debt are well covered by EBIT (11.2x coverage).

Balance Sheet

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Dividend

What is China Communications Construction current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.24%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1800's dividend (6.24%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 1800's dividend (6.24%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).

Stability and Growth of Payments

Stable Dividend: 1800's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1800's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.2%), 1800's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 1800 is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

2.7yrs

Average management tenure

CEO

Haihuai Wang (53 yo)

1.17yrs

Tenure

CN¥827,000

Compensation

Mr. Haihuai Wang serves as President of China Communications Construction Company Limited since April 07, 2021 and serves as Executive Director since June 10, 2021. He served as a Vice President of China C...

CEO Compensation Analysis

Compensation vs Market: Haihuai's total compensation ($USD123.63K) is below average for companies of similar size in the Hong Kong market ($USD1.03M).

Compensation vs Earnings: Haihuai's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: 1800's management team is considered experienced (2.7 years average tenure).

Board Members

Experienced Board: 1800's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31