Shanghai stock alert

CHINA

CLOSING UPDATE: China State Construction Engineering decreases gains by 0.4%, led Engineering & construction sector higher 18 October 2017 15:54 CST

NEWS BITES - BRIC

This is an end of day Alert, produced after today's Shanghai market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

China State Construction Engineering, Shanghai's largest engineering & construction company by market capitalisation, has increased 0.9% to trade at CNY9.48 vs. the Engineering & construction sector which strengthened 65.7 points (or 0.3%) to 20,628.0. Representing a weighting of about 33.7% of the sector, the stock accounted for 89.6% of today's gain. Trading volume was 49% of average at the end of the day. Compared with the SSE 180 Index which rose 68.9 points (or 0.8%) in the day, this represented a relative price increase of 0.03%.

Technical indicators complementing today's significant uptrend:

+ The present value of CNY1,000 invested one year ago is CNY1,479 [vs CNY1,192 for the SSE 180 Index].

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Earnings of 9.5 [12.3]

+ Price/Earnings/Growth of 0.68 [1.0]

+ Price/Sales of 0.3 [0.4]

+ Price to Book of 1.6 [2.5]

+ Dividend yield of 2.3% [1.6%]

+ Return on Equity 13.1% [10.9%]

+ Return on Assets 3% [2.0%]

+ Return on Capital Employed 8.8% [7.0%]

+ Year-on-Year Earnings Growth of 20.5% [11.8%]

Other Bullish Signals include:

+ Tobin's Q Ratio is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top 4% of stock by value of Q Ratio.

+ The Brand Value represents 6.5% of the estimated Enterprise Value of CNY742.6 billion (US$112.1 billion).

+ As per the Du Pont analysis, Return on Equity of 13.1% is better than sector average of 10.9%.

Note

Bearish Signals:

The negative 0.11 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

The price decreased 0.4% in the last week and sank 4.4% in the last month.

Net profit margin has averaged 4.2% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

TODAY'S ALERTS

Afternoon Alert: China State Construction Engineering increases 1.3%, leads Engineering & construction sector higher

18 October 2017 12:59 CST

China State Const. Eng. Corp Ltd. (SS:601668) has increased 1.3% to trade at CNY9.52 vs. the Engineering & construction sector which strengthened 139.4 points (or 0.7%) to 20,701.6. Representing a weighting of about 33.7% of the sector, the stock accounted for 63.3% of today's gain. Trading volume was 1.8 times average so far today.

Morning Alert: China State Construction Engineering increases 0.6%, leads Engineering & construction sector higher

18 October 2017 10:42 CST

China State Const. Eng. Corp Ltd. (SS:601668) has increased 0.6% to trade at CNY9.46 vs. the Engineering & construction sector which strengthened 86.6 points (or 0.4%) to 20,648.8. Representing a weighting of about 33.6% of the sector, the stock accounted for 51.0% of today's gain. Trading volume was 1.5 times average so far today.

RECENT ALERTS

Morning Alert: China State Construction Engineering decreases 0.3%, leads Engineering & construction sector lower

17 October 2017 10:47 CST

China State Const. Eng. Corp Ltd. (SS:601668) has decreased 0.3% to trade at CNY9.38 vs. the Engineering & construction sector which weakened 92.2 points (or 0.5%) to 20,539.6. Representing a weighting of about 33.5% of the sector, the stock accounted for 23.7% of today's loss. Trading volume was 76% of average so far today.

CLOSING UPDATE: China State Construction Engineering decreases further 0.2%, led Engineering & construction sector lower

13 October 2017 16:00 CST

China State Construction Engineering, Shanghai's largest engineering & construction company by market capitalisation, has decreased 0.9% to trade at CNY9.40 vs. the Engineering & construction sector which weakened 33.2 points (or 0.2%) to 20,681.3. Representing a weighting of about 33.3% of the sector, the stock accounted for the loss. The shares have underperformed 91% of the market in the past three months. Trading volume was 33% of average at the end of the day. Compared with the SSE 180 Index which fell 5.2 points (or 0.06%) in the day, this represented a relative price change of -0.9%.

China State Const. Eng. Corp Ltd. (SS:601668; SHA:601668; CH:601668)

ISIN: CNE100000F46

Source: www.BuySellSignals.com