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China Communications Construction

SEHK:1800
Snowflake Description

Good value with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1800
SEHK
HK$181B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

China Communications Construction Company Limited, together with its subsidiaries, engages in the infrastructure construction, infrastructure design, dredging, and other businesses. The last earnings update was 23 days ago. More info.


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1800 Share Price and Events
7 Day Returns
-1.1%
SEHK:1800
-0%
HK Construction
-1.6%
HK Market
1 Year Returns
-16.3%
SEHK:1800
-20.2%
HK Construction
-16.6%
HK Market
1800 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Communications Construction (1800) -1.1% -11.9% -16.1% -16.3% -17.5% 36.1%
HK Construction -0% -10% -10.9% -20.2% -13.2% 6.3%
HK Market -1.6% -9.5% -5.2% -16.6% 24.8% 7.3%
1 Year Return vs Industry and Market
  • 1800 outperformed the Construction industry which returned -20.2% over the past year.
Price Volatility
1800
Industry
5yr Volatility vs Market

1800 Value

 Is China Communications Construction undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China Communications Construction to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China Communications Construction.

SEHK:1800 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 14 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1800
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Construction Unlevered Beta Simply Wall St/ S&P Global 0.98
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.983 (1 + (1- 25%) (184.17%))
1.899
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.899 * 5.96%)
13.32%

Discounted Cash Flow Calculation for SEHK:1800 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China Communications Construction is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1800 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 13.32%)
2019 12,016.27 Analyst x1 10,603.71
2020 15,422.29 Analyst x1 12,009.51
2021 15,175.30 Analyst x1 10,428.02
2022 15,094.88 Est @ -0.53% 9,153.39
2023 15,129.59 Est @ 0.23% 8,095.94
2024 15,244.85 Est @ 0.76% 7,198.66
2025 15,417.76 Est @ 1.13% 6,424.48
2026 15,632.81 Est @ 1.39% 5,748.33
2027 15,879.38 Est @ 1.58% 5,152.60
2028 16,150.13 Est @ 1.7% 4,624.42
Present value of next 10 years cash flows CN¥79,439.06
SEHK:1800 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥16,150.13 × (1 + 2%) ÷ (13.32% – 2%)
CN¥145,547.28
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥145,547.28 ÷ (1 + 13.32%)10
CN¥41,675.90
SEHK:1800 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥79,439.06 + CN¥41,675.90
CN¥121,114.96
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥121,114.96 / 16,174.74
CN¥7.49
SEHK:1800 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1800)
1.137
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥7.49 x 1.137
HK$8.52
Value per share (HKD) From above. HK$8.52
Current discount Discount to share price of HK$7.09
= -1 x (HK$7.09 - HK$8.52) / HK$8.52
16.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price China Communications Construction is available for.
Intrinsic value
17%
Share price is HK$7.09 vs Future cash flow value of HK$8.52
Current Discount Checks
For China Communications Construction to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Communications Construction's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • China Communications Construction's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China Communications Construction's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Communications Construction's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1800 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥1.18
SEHK:1800 Share Price ** SEHK (2019-05-22) in HKD HK$7.09
SEHK:1800 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥6.23
Hong Kong Construction Industry PE Ratio Median Figure of 107 Publicly-Listed Construction Companies 11.27x
Hong Kong Market PE Ratio Median Figure of 1,478 Publicly-Listed Companies 11.06x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China Communications Construction.

SEHK:1800 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1800 Share Price ÷ EPS (both in CNY)

= 6.23 ÷ 1.18

5.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Communications Construction is good value based on earnings compared to the HK Construction industry average.
  • China Communications Construction is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China Communications Construction's expected growth come at a high price?
Raw Data
SEHK:1800 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
11.3%per year
Hong Kong Construction Industry PEG Ratio Median Figure of 9 Publicly-Listed Construction Companies 0.49x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:1800 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.26x ÷ 11.3%

0.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Communications Construction is good value based on expected growth next year.
Price based on value of assets
What value do investors place on China Communications Construction's assets?
Raw Data
SEHK:1800 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥11.70
SEHK:1800 Share Price * SEHK (2019-05-22) in HKD HK$7.09
SEHK:1800 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥6.23
Hong Kong Construction Industry PB Ratio Median Figure of 133 Publicly-Listed Construction Companies 1.41x
Hong Kong Market PB Ratio Median Figure of 2,157 Publicly-Listed Companies 0.97x
SEHK:1800 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1800 Share Price ÷ Book Value per Share (both in CNY)

= 6.23 ÷ 11.70

0.53x

* Primary Listing of China Communications Construction.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Communications Construction is good value based on assets compared to the HK Construction industry average.
X
Value checks
We assess China Communications Construction's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. China Communications Construction has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1800 Future Performance

 How is China Communications Construction expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Communications Construction expected to grow at an attractive rate?
  • China Communications Construction's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • China Communications Construction's earnings growth is expected to exceed the Hong Kong market average.
  • China Communications Construction's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1800 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1800 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 11.3%
SEHK:1800 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 8%
Hong Kong Construction Industry Earnings Growth Rate Market Cap Weighted Average 12.6%
Hong Kong Construction Industry Revenue Growth Rate Market Cap Weighted Average 9.9%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average -5.7%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1800 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1800 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 630,795 47,012 27,554 9
2020-12-31 590,337 44,635 25,229 12
2019-12-31 541,218 40,209 22,536 8
SEHK:1800 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 499,864 -13,304 19,159
2018-12-31 490,872 9,098 18,663
2018-09-30 504,054 7,255 20,696
2018-06-30 501,082 11,784 20,200
2018-03-31 493,359 40,563 19,857
2017-12-31 482,804 42,741 19,563
2017-09-30 424,053 46,291 16,073
2017-06-30 414,641 43,218 16,134
2017-03-31 408,104 30,049 16,453
2016-12-31 407,979 29,723 15,618
2016-09-30 415,810 24,414 15,671
2016-06-30 411,549 24,210 14,954

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Communications Construction's earnings are expected to grow by 11.3% yearly, however this is not considered high growth (20% yearly).
  • China Communications Construction's revenue is expected to grow by 8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1800 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from China Communications Construction Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1800 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.67 1.90 1.54 8.00
2020-12-31 1.53 1.66 1.44 14.00
2019-12-31 1.40 1.45 1.35 10.00
SEHK:1800 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 1.18
2018-12-31 1.15
2018-09-30 1.28
2018-06-30 1.25
2018-03-31 1.23
2017-12-31 1.21
2017-09-30 1.00
2017-06-30 0.98
2017-03-31 1.02
2016-12-31 0.97
2016-09-30 1.00
2016-06-30 0.97

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • China Communications Construction is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China Communications Construction's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China Communications Construction has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1800 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China Communications Construction's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China Communications Construction's year on year earnings growth rate has been positive over the past 5 years.
  • China Communications Construction's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • China Communications Construction's 1-year earnings growth is negative, it can't be compared to the HK Construction industry average.
Earnings and Revenue History
China Communications Construction's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China Communications Construction Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1800 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 499,863.87 19,159.09 24,741.31 11,374.57
2018-12-31 490,872.13 18,662.92 25,643.64 9,526.91
2018-09-30 504,054.38 20,696.08 28,690.65 9,511.88
2018-06-30 501,081.85 20,200.06 28,565.25 9,364.41
2018-03-31 493,358.86 19,856.81 27,468.78 8,337.31
2017-12-31 482,804.34 19,563.28 26,794.11 8,337.31
2017-09-30 424,053.11 16,073.33 27,842.72 6,691.39
2017-06-30 414,640.94 16,133.68 29,629.52 3,747.31
2017-03-31 408,103.92 16,453.50 31,935.70
2016-12-31 407,978.75 15,618.42 31,238.46
2016-09-30 415,810.08 15,670.67 29,191.02
2016-06-30 411,549.15 14,953.74 27,795.27
2016-03-31 412,641.27 15,741.50 27,133.88
2015-12-31 404,420.45 15,396.28 26,636.67
2015-09-30 394,062.07 14,179.16 21,124.61
2015-06-30 384,420.54 14,599.73 20,243.94
2015-03-31 379,101.27 14,026.47 19,192.72
2014-12-31 366,673.23 13,887.50 18,702.93
2014-09-30 357,146.21 13,846.55 17,545.23
2014-06-30 349,676.90 12,601.83 10,672.87
2014-03-31 339,718.50 12,172.09 16,254.56
2013-12-31 332,486.77 12,138.84 16,240.51
2013-09-30 323,416.81 13,126.44 28,513.17
2013-06-30 312,435.60 12,476.99 34,229.52
2013-03-31 300,608.31 12,242.93 28,333.14
2012-12-31 296,227.39 11,979.76 28,025.89
2012-09-30 284,533.68 10,419.15 14,108.72
2012-06-30 281,112.07 10,723.68 14,167.11

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China Communications Construction has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Communications Construction used its assets less efficiently than the HK Construction industry average last year based on Return on Assets.
  • China Communications Construction's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess China Communications Construction's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China Communications Construction has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1800 Health

 How is China Communications Construction's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China Communications Construction's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China Communications Construction is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • China Communications Construction's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China Communications Construction's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China Communications Construction Company Filings, last reported 1 month ago.

SEHK:1800 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 247,697.96 293,501.07 105,764.43
2018-12-31 239,682.18 293,287.13 142,281.79
2018-09-30 218,873.33 315,199.54 113,321.67
2018-06-30 210,985.88 292,321.14 123,083.25
2018-03-31 210,943.27 273,147.35 113,628.44
2017-12-31 205,941.76 259,555.80 145,680.68
2017-09-30 201,915.39 304,775.69 98,624.96
2017-06-30 195,119.61 289,453.45 110,577.40
2017-03-31 192,723.46 275,023.05 98,878.84
2016-12-31 186,957.32 271,082.06 124,667.26
2016-09-30 180,978.30 270,421.79 80,823.45
2016-06-30 173,619.00 280,370.02 89,555.44
2016-03-31 171,376.62 256,122.75 89,381.83
2015-12-31 169,562.82 251,773.22 104,359.52
2015-09-30 158,172.87 254,650.43 100,413.00
2015-06-30 145,263.25 257,473.26 85,328.58
2015-03-31 134,705.60 245,744.88 70,155.55
2014-12-31 132,196.54 225,059.04 85,609.27
2014-09-30 114,476.00 230,307.81 75,140.33
2014-06-30 109,110.40 232,286.11 87,364.08
2014-03-31 106,667.63 206,642.62 88,142.68
2013-12-31 105,547.34 186,028.23 90,622.46
2013-09-30 101,511.64 160,238.36 67,331.97
2013-06-30 98,504.20 165,420.94 72,297.13
2013-03-31 98,895.62 134,164.34 60,440.20
2012-12-31 97,087.12 143,456.04 88,723.48
2012-09-30 90,156.13 130,416.64 64,060.52
2012-06-30 88,724.72 131,505.09 63,082.54
  • China Communications Construction's level of debt (118.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (193.9% vs 118.5% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 6.8x coverage).
X
Financial health checks
We assess China Communications Construction's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China Communications Construction has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1800 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.88%
Current annual income from China Communications Construction dividends. Estimated to be 4.52% next year.
If you bought HK$2,000 of China Communications Construction shares you are expected to receive HK$78 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • China Communications Construction's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • China Communications Construction's dividend is below the markets top 25% of dividend payers in Hong Kong (5.8%).
Upcoming dividend payment

Purchase China Communications Construction before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1800 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Hong Kong Construction Industry Average Dividend Yield Market Cap Weighted Average of 42 Stocks 3.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 968 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1800 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.31 10.00
2020-12-31 0.28 16.00
2019-12-31 0.25 11.00
SEHK:1800 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2018-06-20 0.242 3.576
2017-06-26 0.194 2.548
2016-06-16 0.190 2.324
2015-03-30 0.172 2.197
2014-06-25 0.188 3.416
2013-07-02 0.185 4.028
2012-03-26 0.179 3.139
2012-01-30 0.160 2.631
2011-03-25 0.160 3.182
2010-08-31 0.116 1.982

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, China Communications Construction has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but China Communications Construction only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of China Communications Construction's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.2x coverage).
X
Income/ dividend checks
We assess China Communications Construction's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China Communications Construction afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Communications Construction has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1800 Management

 What is the CEO of China Communications Construction's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
  • China Communications Construction has no CEO, or we have no data on them.
Management Team Tenure

Average tenure and age of the China Communications Construction management team in years:

2
Average Tenure
54
Average Age
  • The average tenure for the China Communications Construction management team is less than 2 years, this suggests a new team.
Management Team

Qitao Liu

TITLE
Executive Chairman
COMPENSATION
CN¥827K
AGE
61

Hailiang Song

TITLE
President & Executive Director
COMPENSATION
CN¥978K
AGE
53
TENURE
0.6 yrs

Yun Chen

TITLE
Executive Director
COMPENSATION
CN¥753K
AGE
55
TENURE
1.5 yrs

Haihuai Wang

TITLE
Vice President
COMPENSATION
CN¥981K
AGE
50
TENURE
5.1 yrs

Ziyu Sun

TITLE
VP & Chief Engineer
COMPENSATION
CN¥979K
AGE
56
TENURE
5.1 yrs

Gang Wen

TITLE
Vice President
COMPENSATION
CN¥1M
AGE
52
TENURE
2.4 yrs

Jian Wang

TITLE
VP & Chief Safety Officer
COMPENSATION
CN¥917K
AGE
54
TENURE
2.4 yrs

Changjiang Zhou

TITLE
Company Secretary
COMPENSATION
CN¥859K
AGE
53
TENURE
1.4 yrs

Bihong Peng

TITLE
Chief Financial Officer
AGE
55
TENURE
0.7 yrs

Ming Lin

TITLE
Chief Engineer
Board of Directors Tenure

Average tenure and age of the China Communications Construction board of directors in years:

1.5
Average Tenure
58.5
Average Age
  • The average tenure for the China Communications Construction board of directors is less than 3 years, this suggests a new board.
Board of Directors

Qitao Liu

TITLE
Executive Chairman
COMPENSATION
CN¥827K
AGE
61
TENURE
6.1 yrs

Hailiang Song

TITLE
President & Executive Director
COMPENSATION
CN¥978K
AGE
53
TENURE
0.5 yrs

Yun Chen

TITLE
Executive Director
COMPENSATION
CN¥753K
AGE
55
TENURE
1.5 yrs

Long Huang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥60K
AGE
65
TENURE
5.1 yrs

Maurice Ngai

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥8K
AGE
56
TENURE
1.5 yrs

Sen Li

TITLE
Chairman of the Supervisory Committee
AGE
54
TENURE
1.5 yrs

Maoxun Llu

TITLE
Non-Executive Director
AGE
63
TENURE
5.1 yrs

Changhong Zheng

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥5K
AGE
63
TENURE
1.5 yrs

Xiaofei Ql

TITLE
Non-Executive Director
AGE
61
TENURE
1.5 yrs

Yongbin Wang

TITLE
Shareholder Representative Supervisor
COMPENSATION
CN¥759K
AGE
53
TENURE
12.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
17. May 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 14. May 19 14. May 19 30,578,943 HK$7.15 HK$218,724,976
05. Apr 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 02. Apr 19 02. Apr 19 -9,232,896 HK$7.97 HK$-73,626,826
22. Feb 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 19. Feb 19 19. Feb 19 9,829,122 HK$8.50 HK$83,575,064
08. Feb 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 01. Feb 19 01. Feb 19 3,845,931 HK$7.95 HK$30,593,610
05. Dec 18 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 30. Nov 18 30. Nov 18 1,419,418 HK$7.62 HK$10,819,652
30. Nov 18 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 27. Nov 18 27. Nov 18 1,305,511 HK$7.58 HK$9,889,509
30. Nov 18 Sell Highbridge Capital Management, LLC Company 27. Nov 18 27. Nov 18 46,000 HK$7.58 HK$348,459
29. Nov 18 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 26. Nov 18 26. Nov 18 2,345,596 HK$7.67 HK$17,993,310
26. Oct 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 23. Oct 18 23. Oct 18 5,591,464 HK$7.41 HK$41,445,042
05. Nov 18 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 01. Nov 18 01. Nov 18 -12,163,252 HK$7.43 HK$-90,414,286
31. Oct 18 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 26. Oct 18 26. Oct 18 1,579,303 HK$7.21 HK$11,386,295
30. Oct 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 25. Oct 18 25. Oct 18 -715,315 HK$7.25 HK$-5,187,536
11. Oct 18 Buy BlackRock, Inc. Company 08. Oct 18 08. Oct 18 1,688,000 HK$7.94 HK$13,410,145
26. Sep 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 21. Sep 18 21. Sep 18 -8,859,508 HK$7.95 HK$-70,464,971
20. Sep 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 17. Sep 18 17. Sep 18 1,369,624 HK$7.30 HK$9,997,566
19. Sep 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 14. Sep 18 14. Sep 18 -2,358,493 HK$7.47 HK$-17,609,917
14. Sep 18 Sell BlackRock, Inc. Company 11. Sep 18 11. Sep 18 -1,191,000 HK$7.41 HK$-8,829,358
29. Aug 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 24. Aug 18 24. Aug 18 962,137 HK$7.66 HK$7,373,817
28. Aug 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 23. Aug 18 23. Aug 18 -1,070,264 HK$7.84 HK$-8,386,266
21. Aug 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 17. Aug 18 17. Aug 18 2,214,884 HK$7.97 HK$17,647,091
16. Aug 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 13. Aug 18 13. Aug 18 -3,159,374 HK$8.10 HK$-25,591,257
X
Management checks
We assess China Communications Construction's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China Communications Construction has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1800 News

Simply Wall St News

Calculating The Fair Value Of China Communications Construction Company Limited (HKG:1800)

In this article we are going to estimate the intrinsic value of China Communications Construction Company Limited (HKG:1800) by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (CN¥, Millions) CN¥12.02k CN¥15.42k CN¥15.18k CN¥15.09k CN¥15.13k CN¥15.24k CN¥15.42k CN¥15.63k CN¥15.88k CN¥16.15k Growth Rate Estimate Source Analyst x1 Analyst x1 Analyst x1 Est @ -0.53% Est @ 0.23% Est @ 0.76% Est @ 1.13% Est @ 1.39% Est @ 1.58% Est @ 1.7% Present Value (CN¥, Millions) Discounted @ 13.33% CN¥10.60k CN¥12.01k CN¥10.43k CN¥9.15k CN¥8.09k CN¥7.20k CN¥6.42k CN¥5.75k CN¥5.15k CN¥4.62k Present Value of 10-year Cash Flow (PVCF)= CN¥79.42b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … SEHK:1800 Intrinsic value, May 21st 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

What You Must Know About China Communications Construction Company Limited's (HKG:1800) Financial Strength

The size of China Communications Construction Company Limited (HKG:1800), a HK$188b large-cap, often attracts investors seeking a reliable investment in the stock market. … This article will examine China Communications Construction’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis

Simply Wall St -

What Are Analysts Saying About China Communications Construction Company Limited's (HKG:1800) Future?

As China Communications Construction Company Limited (HKG:1800) announced its earnings release on 31 December 2018, … with earnings expected to grow by 22% in the upcoming year … the past 5-year average growth rate of 7.7%.

Simply Wall St -

At HK$8.15, Is It Time To Put China Communications Construction Company Limited (HKG:1800) On Your Watch List?

Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether China Communications Construction's current trading price of HK$8.15 reflective of the actual value of the? … Let’s take a look at China Communications Construction’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Here’s why China Communications Construction Company Limited’s (HKG:1800) Returns On Capital Matters So Much

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

The China Communications Construction (HKG:1800) Share Price Has Gained 56% And Shareholders Are Hoping For More

To wit, the China Communications Construction share price has climbed 56% in five years, easily topping the market return of 21% (ignoring dividends). … Over half a decade, China Communications Construction managed to grow its earnings per share at 9.4% a year. … We know that China Communications Construction has improved its bottom line lately, but is it going to grow revenue

Simply Wall St -

Should China Communications Construction Company Limited (HKG:1800) Be Part Of Your Dividend Portfolio?

China Communications Construction Company Limited (HKG:1800) has pleased shareholders over the past 10 years, by paying out dividends. … The company currently pays out a dividend yield of 3.3% to shareholders, making it a relatively attractive dividend stock. … Does China Communications Construction tick all the boxes of a great dividend stock?

Simply Wall St -

Does China Communications Construction Company Limited (HKG:1800) Have A Good P/E Ratio?

We'll look at China Communications Construction Company Limited's (HKG:1800) P/E ratio and reflect on what it tells us about the company's share price. … China Communications Construction has a price to earnings ratio of 5.74, based on the last twelve months. … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

Do Institutions Own Shares In China Communications Construction Company Limited (HKG:1800)?

A look at the shareholders of China Communications Construction Company Limited (HKG:1800) can tell us which group is most powerful. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

An Intrinsic Calculation For China Communications Construction Company Limited (HKG:1800) Shows It's 23.56% Undervalued

by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

1800 Company Info

Description

China Communications Construction Company Limited, together with its subsidiaries, engages in the infrastructure construction, infrastructure design, dredging, and other businesses. The company is involved in the construction of various infrastructure projects, including road and bridge, port, railway, airport, subway, housing, etc.; 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, and reclamation, 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 repair of port machinery; trading of construction materials and equipment; fund and asset management activities; and provision of financial services. It has operations in Mainland China and Australia, as well as countries in Africa, the Middle East, and South East Asia. The company was founded in 2006 and is based in Beijing, the People’s Republic of China. China Communications Construction Company Limited is a subsidiary of China Communications Construction Group (Limited).

Details
Name: China Communications Construction Company Limited
1800
Exchange: SEHK
Founded: 2006
HK$181,251,223,597
16,174,735,425
Website: http://www.ccccltd.cn
Address: China Communications Construction Company Limited
No.85 De Sheng Men Wai Street,
Xicheng District,
Beijing,
100088,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1800 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 15. Dec 2006
OTCPK CCCG.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 15. Dec 2006
DB CYY Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 15. Dec 2006
SHSC 1800 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 15. Dec 2006
SZSC 1800 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 15. Dec 2006
OTCPK CCCG.Y ADR Pink Sheets LLC US USD 08. Jan 2009
SHSE 601800 Domestic Shares Shanghai Stock Exchange CN CNY 09. Mar 2012
XSSC 601800 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 09. Mar 2012
Number of employees
Current staff
Staff numbers
116,893
China Communications Construction employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/22 12:45
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/05/08
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.