SEHK:1800

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

China Communications Construction

Executive Summary

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


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1800 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

1800

-6.5%

HK Construction

-3.9%

HK Market


1 Year Return

-33.1%

1800

-18.8%

HK Construction

-1.5%

HK Market

Return vs Industry: 1800 underperformed the Hong Kong Construction industry which returned -18.3% over the past year.

Return vs Market: 1800 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

1800IndustryMarket
7 Day-0.5%-6.5%-3.9%
30 Day-12.5%-8.7%-7.1%
90 Day-5.7%2.7%-0.7%
1 Year-29.4%-33.1%-14.5%-18.8%2.4%-1.5%
3 Year-51.6%-57.6%-36.0%-44.0%-7.2%-17.2%
5 Year-48.3%-56.8%-34.3%-45.5%20.1%-0.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1800 (HK$4.12) is trading above our estimate of fair value (HK$2.7)

Significantly Below Fair Value: 1800 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1800 is good value based on its PE Ratio (3.8x) compared to the HK Construction industry average (8.8x).

PE vs Market: 1800 is good value based on its PE Ratio (3.8x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: 1800 is good value based on its PB Ratio (0.3x) compared to the HK Construction industry average (0.9x).


Next Steps

Future Growth

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

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1800's forecast earnings growth (12% per year) is above the savings rate (1.6%).

Earnings vs Market: 1800's earnings (12% per year) are forecast to grow slower than the Hong Kong market (22.5% per year).

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

Revenue vs Market: 1800's revenue (7.5% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 1800's revenue (7.5% 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 (7.9%).


Next Steps

Past Performance

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

4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1800 has high quality earnings.

Growing Profit Margin: 1800's current net profit margins (2.7%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: 1800's earnings have grown by 4.7% per year over the past 5 years.

Accelerating Growth: 1800's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1800 had negative earnings growth (-15.6%) over the past year, making it difficult to compare to the Construction industry average (-5.6%).


Return on Equity

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


Next Steps

Financial Health

How is China Communications Construction's financial position?


Financial Position Analysis

Short Term Liabilities: 1800's short term assets (CN¥579.7B) exceed its short term liabilities (CN¥574.7B).

Long Term Liabilities: 1800's short term assets (CN¥579.7B) exceed its long term liabilities (CN¥350.6B).


Debt to Equity History and Analysis

Debt Level: 1800's debt to equity ratio (139.9%) is considered high.

Reducing Debt: 1800's debt to equity ratio has reduced from 174.8% to 139.9% over the past 5 years.

Debt Coverage: 1800's debt is not well covered by operating cash flow (1.3%).

Interest Coverage: 1800's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Next Steps

Dividend

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

6.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1800's dividend (6.41%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1800's dividend (6.41%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.92%).


Stability and Growth of Payments

Stable Dividend: 1800's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.6%), 1800's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1800's dividends in 3 years are forecast to be well covered by earnings (19.5% payout ratio).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

China Communications Construction has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Qitao Liu
Executive Chairman7.42yrsCN¥1.70mno data
Hongbiao Zhu
Chief Financial Officer0.92yrCN¥956.00kno data
Gang Wen
Vice President3.75yrsCN¥1.42mno data
Jian Wang
Vice President3.75yrsCN¥1.07mno data
Jingbo Zhou
Vice President0.92yrCN¥1.80mno data
Minshan Pei
Vice President0.92yrCN¥1.59mno data
Zhong Chen
Vice President0.92yrCN¥1.85mno data
Maohui Li
Vice President0.92yrCN¥2.14mno data
Changjiang Zhou
Company Secretary2.75yrsCN¥1.05mno data

0.9yrs

Average Tenure

55yo

Average Age

Experienced Management: 1800's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Qitao Liu
Executive Chairman7.42yrsCN¥1.70mno data
Long Huang
Independent Non-Executive Director6.42yrsCN¥60.00kno data
Wai Fung Ngai
Independent Non-Executive Director2.83yrsCN¥222.00kno data
Yongbin Wang
Shareholder Representative Supervisor14yrsCN¥759.00kno data
Maoxun Llu
Non-Executive Director6.42yrsCN¥45.00kno data
Yanmin Yao
Employee Representative Supervisor6.42yrsCN¥760.00kno data
Changhong Zheng
Independent Non-Executive Director2.83yrsCN¥60.00kno data
Sen Li
Chairman of the Supervisory Board2.83yrsno datano data
Jingjing Yu
Deputy Director of the Board of Directorsno datano datano data

6.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 1800's board of directors are considered experienced (6.4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

China Communications Construction Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Communications Construction Company Limited
  • Ticker: 1800
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$118.067b
  • Shares outstanding: 16.17b
  • Website: https://www.ccccltd.cn

Number of Employees


Location

  • China Communications Construction Company Limited
  • No.85 De Sheng Men Wai Street
  • Xicheng District
  • Beijing
  • 100088
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1800SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2006
CYYDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2006
CCCG.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2006
1800SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2006
1800SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2006
CCCG.YOTCPK (Pink Sheets LLC)ADRUSUSDJan 2009
601800SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYMar 2012
601800XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYMar 2012

Biography

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 o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 19:21
End of Day Share Price2020/09/24 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.