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1618

Metallurgical Corporation of China SHSC:1618 Stock Report

Last Price

HK$1.62

Market Cap

HK$71.5b

7D

-9.0%

1Y

-31.1%

Updated

02 Aug, 2022

Data

Company Financials +
1618 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends3/6

1618 Stock Overview

Metallurgical Corporation of China Ltd., together with its subsidiaries, engages in the engineering contracting, property development, equipment manufacture, and resource development businesses in China and internationally.

Metallurgical Corporation of China Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Metallurgical Corporation of China
Historical stock prices
Current Share PriceHK$1.62
52 Week HighHK$3.42
52 Week LowHK$1.59
Beta0.80
1 Month Change-13.83%
3 Month Change-21.74%
1 Year Change-31.06%
3 Year Change-8.99%
5 Year Change-41.09%
Change since IPO-28.32%

Recent News & Updates

Shareholder Returns

1618HK ConstructionHK Market
7D-9.0%-3.4%-1.9%
1Y-31.1%-10.4%-21.1%

Return vs Industry: 1618 underperformed the Hong Kong Construction industry which returned -10.4% over the past year.

Return vs Market: 1618 underperformed the Hong Kong Market which returned -21.1% over the past year.

Price Volatility

Is 1618's price volatile compared to industry and market?
1618 volatility
1618 Average Weekly Movement3.7%
Construction Industry Average Movement6.9%
Market Average Movement6.6%
10% most volatile stocks in HK Market13.2%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 1618 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1618's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200897,972Mengxing Zhanghttps://www.mccchina.com

Metallurgical Corporation of China Ltd., together with its subsidiaries, engages in the engineering contracting, property development, equipment manufacture, and resource development businesses in China and internationally. The company’s Engineering Contracting segment offers engineering, construction, and other related contracting services for metallurgical and non-metallurgical projects. Its Property Development segment develops and sells residential and commercial properties, and housing properties; and develops land.

Metallurgical Corporation of China Fundamentals Summary

How do Metallurgical Corporation of China's earnings and revenue compare to its market cap?
1618 fundamental statistics
Market CapCN¥61.67b
Earnings (TTM)CN¥7.83b
Revenue (TTM)CN¥524.18b

3.7x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1618 income statement (TTM)
RevenueCN¥524.18b
Cost of RevenueCN¥469.67b
Gross ProfitCN¥54.50b
Other ExpensesCN¥46.67b
EarningsCN¥7.83b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.38
Gross Margin10.40%
Net Profit Margin1.49%
Debt/Equity Ratio58.6%

How did 1618 perform over the long term?

See historical performance and comparison

Dividends

5.6%

Current Dividend Yield

21%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 1618 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1618?

Other financial metrics that can be useful for relative valuation.

1618 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/Revenue0.3x
Enterprise Value/EBITDA6.6x
PEG Ratio0.2x

Price to Earnings Ratio vs Peers

How does 1618's PE Ratio compare to its peers?

1618 PE Ratio vs Peers
The above table shows the PE ratio for 1618 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5x
3996 China Energy Engineering
5.8x13.1%HK$42.1b
1800 China Communications Construction
3x11.1%HK$122.0b
3311 China State Construction International Holdings
5.9x13.5%HK$39.9b
1799 Xinte Energy
4.7x-6.1%HK$27.1b
1618 Metallurgical Corporation of China
3.7x17.5%HK$71.5b

Price-To-Earnings vs Peers: 1618 is good value based on its Price-To-Earnings Ratio (3.7x) compared to the peer average (5x).


Price to Earnings Ratio vs Industry

How does 1618's PE Ratio compare vs other companies in the HK Construction Industry?

Price-To-Earnings vs Industry: 1618 is good value based on its Price-To-Earnings Ratio (3.7x) compared to the Hong Kong Construction industry average (11.1x)


Price to Earnings Ratio vs Fair Ratio

What is 1618'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.

1618 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.7x
Fair PE Ratio11x

Price-To-Earnings vs Fair Ratio: 1618 is good value based on its Price-To-Earnings Ratio (3.7x) compared to the estimated Fair Price-To-Earnings Ratio (11x).


Share Price vs Fair Value

What is the Fair Price of 1618 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1618 (HK$1.62) is trading below our estimate of fair value (HK$12.13)

Significantly Below Fair Value: 1618 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Metallurgical Corporation of China forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1618's forecast earnings growth (17.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 1618's earnings (17.5% per year) are forecast to grow faster than the Hong Kong market (16.5% per year).

High Growth Earnings: 1618's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1618's revenue (15.5% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1618's revenue (15.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1618's Return on Equity is forecast to be low in 3 years time (9.4%).


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Past Performance

How has Metallurgical Corporation of China 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


9.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1618 has high quality earnings.

Growing Profit Margin: 1618's current net profit margins (1.5%) are lower than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: 1618's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: 1618's earnings growth over the past year (13.3%) exceeds its 5-year average (9.4% per year).

Earnings vs Industry: 1618 earnings growth over the past year (13.3%) exceeded the Construction industry -13.2%.


Return on Equity

High ROE: 1618's Return on Equity (8%) is considered low.


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Financial Health

How is Metallurgical Corporation of China's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1618's short term assets (CN¥454.0B) exceed its short term liabilities (CN¥391.9B).

Long Term Liabilities: 1618's short term assets (CN¥454.0B) exceed its long term liabilities (CN¥37.2B).


Debt to Equity History and Analysis

Debt Level: 1618's net debt to equity ratio (23.5%) is considered satisfactory.

Reducing Debt: 1618's debt to equity ratio has reduced from 118.9% to 58.6% over the past 5 years.

Debt Coverage: 1618's debt is not well covered by operating cash flow (17.8%).

Interest Coverage: 1618 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Metallurgical Corporation of China current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.62%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1618's dividend (5.62%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.86%).

High Dividend: 1618's dividend (5.62%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.3%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1618 has been paying a dividend for less than 10 years.

Growing Dividend: 1618's dividend payments have increased, but the company has only paid a dividend for 8 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (20.9%), 1618's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (12.9%), 1618's dividend payments are thoroughly covered by cash flows.


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Management

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

3.8yrs

Average management tenure


CEO

Mengxing Zhang (59 yo)

5.83yrs

Tenure

CN¥2,077,904

Compensation

Mr. Mengxing Zhang has been the President at Metallurgical Corporation of China Ltd. since October 26, 2016. He serves as Executive Director at Metallurgical Corporation of China Ltd.since October 15, 202...


CEO Compensation Analysis

Compensation vs Market: Mengxing's total compensation ($USD306.98K) is below average for companies of similar size in the Hong Kong market ($USD770.41K).

Compensation vs Earnings: Mengxing's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 1618's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: 1618's board of directors are not considered experienced ( 1.8 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.


Top Shareholders

Company Information

Metallurgical Corporation of China Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Metallurgical Corporation of China Ltd.
  • Ticker: 1618
  • Exchange: SHSC
  • Founded: 2008
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Implied Market Cap: HK$71.524b
  • Shares outstanding: 20.72b
  • Website: https://www.mccchina.com

Number of Employees


Location

  • Metallurgical Corporation of China Ltd.
  • MCC Building
  • No. 28 Shuguang Xili
  • Beijing
  • 100028
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/02 00:00
End of Day Share Price2022/08/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.