# Metallurgical Corporation of China (601618.SHG)

Canonical: https://gigainvestors.com/s/601618.SHG

Analysis as of: 2026-10-16T07:36:25.264Z. Financial observations: FY2004–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 2.52 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.20×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.03×

- FY2017: 0.04×

- FY2018: 0.03×

- FY2019: 0.03×

- FY2020: 0.03×

- FY2021: 0.03×

- FY2022: 0.03×

- FY2023: 0.02×

- FY2024: 0.02×

- FY2025: 0.03×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 6.4%

- ROIC, second-lowest year: 4.6%

- Typical minus recent gross margin: 1.5 pp

- Typical gross margin (annual median): 10.9%

- Recent gross margin (lower of latest and 3-year median): 9.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.2%

- ROIC including acquisitions, ten-year median: 4.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 4.6%

- FY2017: 5.2%

- FY2018: 5.9%

- FY2019: 5.3%

- FY2020: 8.4%

- FY2021: 9.3%

- FY2022: 9.3%

- FY2023: 9.5%

- FY2024: 4.3%

- FY2025: 6.9%

### economics: pass

- Owner earnings / net income, 5-yr: 0.90×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 32B

- Net income, five-year total: CNY 35B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -10.1 pp

- Working capital / revenue, change between three-year averages: -66.8 pp

- Working capital / revenue, final three-year average: 18.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.99×

- FY2022: 0.99×

- FY2023: 0.99×

- FY2024: 0.63×

- FY2025: 0.29×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.2% vs 6.9%

- Per-share earnings: 0.37 to 0.33 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.8%

- Ordinary dilution, 5-year annual growth: 15.4%

- Market cap gain: CNY -1.5B

- Cumulative retained earnings: CNY 35B

- Diluted shares, 10-year annual growth: 1.8%

- Diluted shares, 5-year annual growth: 15.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -1.6%

- Per-share value change: CNY -0.05

- Per-share value, starting three-year median: CNY 0.37

- Per-share value, ending three-year median: CNY 0.33

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 15B

- Cumulative net income, 10 years: CNY 68B

- ROIC, first three-year median: 5.2%

- ROIC, last three-year median: 6.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.40

- FY2017: CNY 0.37

- FY2018: CNY 0.32

- FY2019: CNY 0.34

- FY2020: CNY 0.77

- FY2021: CNY 0.69

- FY2022: CNY 0.45

- FY2023: CNY 0.42

- FY2024: CNY 0.33

- FY2025: CNY 0.06

### accounting: pass

- Sloan accruals: -1.7%

- Receivables to sales index (DSRI): 0.69×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 11.59×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.17×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.5%

- FY2017: -3.0%

- FY2018: -1.7%

- FY2019: -2.4%

- FY2020: -4.0%

- FY2021: -1.7%

- FY2022: -1.3%

- FY2023: 0.4%

- FY2024: -0.1%

- FY2025: -1.7%

## Holders

## Price story

Down 44% since Apr 2023 · sales -17.5%

Story as of 2026-10-16T10:00:07.444Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -17.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 220B 

- FY2017: CNY 244B 

- FY2018: CNY 290B 

- FY2019: CNY 339B 

- FY2020: CNY 400B 

- FY2021: CNY 501B 

- FY2022: CNY 593B 

- FY2023: CNY 634B 

- FY2024: CNY 552B 

- FY2025: CNY 455B 

### Gross margin · FY2025

gross margin 10.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 12.5% 

- FY2017: 12.8% 

- FY2018: 12.4% 

- FY2019: 11.5% 

- FY2020: 11.3% 

- FY2021: 10.6% 

- FY2022: 9.6% 

- FY2023: 9.5% 

- FY2024: 9.4% 

- FY2025: 10.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in engineering & construction; annual sales are CNY 455.4 billion.

- Source: https://eodhd.com/api/fundamentals/601618.SHG.json#2025-12-31 (filed 2026-10-16T07:36:25.264Z); FY2025: revenue 455380420000; grossProfit 45934615000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 9.4% to 10.1% during 2023–25; it earns 6.4% on its capital.

- Source: https://eodhd.com/api/fundamentals/601618.SHG.json#2023-12-31 (filed 2026-10-16T07:36:25.264Z); FY2023: grossProfit / revenue = 9.5%.

- Source: https://eodhd.com/api/fundamentals/601618.SHG.json#2024-12-31 (filed 2026-10-16T07:36:25.264Z); FY2024: grossProfit / revenue = 9.4%.

- Source: https://eodhd.com/api/fundamentals/601618.SHG.json#2025-12-31 (filed 2026-10-16T07:36:25.264Z); FY2025: grossProfit / revenue = 10.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:25.264Z); 10-year return on capital observations [[2016,0.04552186638876416],[2017,0.05169856306117316],[2018,0.058783183842921485],[2019,0.0527076107678507],[2020,0.08414083179829322],[2021,0.09299852966865818],[2022,0.09347721240681553],[2023,0.09488829678771375],[2024,0.04333553144162173],[2025,0.06916008040281864]]; median 0.06397163212287006. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 10% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:25.264Z); Gross margin observations: [[2021,0.10568868675856105],[2022,0.09620761179182975],[2023,0.09474077810811624]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/601618.SHG.json#2016-12-31 (filed 2026-10-16T07:36:25.264Z); FY2016: growth capex 138996000; upkeep 2975966000; owner earnings 5375858000. Growth capex / owner earnings = 0.02585559365593362.

- Source: https://eodhd.com/api/fundamentals/601618.SHG.json#2017-12-31 (filed 2026-10-16T07:36:25.264Z); FY2017: growth capex 1163853000; upkeep 2915515000; owner earnings 6061488000. Growth capex / owner earnings = 0.19200780402435838.

- Source: https://eodhd.com/api/fundamentals/601618.SHG.json#2018-12-31 (filed 2026-10-16T07:36:25.264Z); FY2018: growth capex 2735745000; upkeep 2859463000; owner earnings 6371580000. Growth capex / owner earnings = 0.429366813255111.

- Source: https://eodhd.com/api/fundamentals/601618.SHG.json#2019-12-31 (filed 2026-10-16T07:36:25.264Z); FY2019: growth capex 788171000; upkeep 3321803000; owner earnings 6599712000. Growth capex / owner earnings = 0.11942505976018347.

- Source: https://eodhd.com/api/fundamentals/601618.SHG.json#2020-12-31 (filed 2026-10-16T07:36:25.264Z); FY2020: growth capex 205719000; upkeep 3537306000; owner earnings 7862185000. Growth capex / owner earnings = 0.02616562698537366.

- Source: https://eodhd.com/api/fundamentals/601618.SHG.json#2021-12-31 (filed 2026-10-16T07:36:25.264Z); FY2021: growth capex 94451000; upkeep 3456932000; cash acquisitions 0; owner earnings 8301141000. Growth capex plus acquisitions / owner earnings = 0.011378074411698344.

- Source: https://eodhd.com/api/fundamentals/601618.SHG.json#2022-12-31 (filed 2026-10-16T07:36:25.264Z); FY2022: growth capex 455062000; upkeep 3858860000; cash acquisitions 352747000; owner earnings 10185726151.923903. Growth capex plus acquisitions / owner earnings = 0.07930794407303197.

- Source: https://eodhd.com/api/fundamentals/601618.SHG.json#2023-12-31 (filed 2026-10-16T07:36:25.264Z); FY2023: growth capex 788359000; upkeep 3806973000; cash acquisitions 0; owner earnings 8594185069.176527. Growth capex plus acquisitions / owner earnings = 0.09173167597094097.

- Source: https://eodhd.com/api/fundamentals/601618.SHG.json#2024-12-31 (filed 2026-10-16T07:36:25.264Z); FY2024: growth capex 0; upkeep 6862652000; owner earnings 4238762833.63214. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/601618.SHG.json#2025-12-31 (filed 2026-10-16T07:36:25.264Z); FY2025: growth capex 0; upkeep 6277713000; cash acquisitions 0; owner earnings 382089747.03405356. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:25.264Z); Dividend observations: [[2016,7019553000],[2017,6484450000],[2018,8559491000],[2019,1450653000],[2020,1492100000],[2021,1554272000],[2022,1616442000],[2023,1720060000],[2024,7317849000],[2025,6535003000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 64.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601618.SHG SharesStats.PercentInsiders = 64.46 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.1 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:25.264Z); Closing price 2.52 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 21.97398147495377; price multiple 0.11468108330173704. FY2025 cash earnings/share 0.018437404539914267. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 4.20 per share

- 2016-11: CNY 5.38 per share

- 2016-12: CNY 4.66 per share

- 2017-01: CNY 5.05 per share

- 2017-02: CNY 5.09 per share

- 2017-03: CNY 5.08 per share

- 2017-04: CNY 5.05 per share

- 2017-05: CNY 4.96 per share

- 2017-06: CNY 5.01 per share

- 2017-07: CNY 5.14 per share

- 2017-08: CNY 5.07 per share

- 2017-09: CNY 5.12 per share

- 2017-10: CNY 5.10 per share

- 2017-11: CNY 4.98 per share

- 2017-12: CNY 4.84 per share

- 2018-01: CNY 4.48 per share

- 2018-02: CNY 4.16 per share

- 2018-03: CNY 3.80 per share

- 2018-04: CNY 3.69 per share

- 2018-05: CNY 3.68 per share

- 2018-06: CNY 3.33 per share

- 2018-07: CNY 3.49 per share

- 2018-08: CNY 3.58 per share

- 2018-09: CNY 3.57 per share

- 2018-10: CNY 3.17 per share

- 2018-11: CNY 3.10 per share

- 2018-12: CNY 3.11 per share

- 2019-01: CNY 2.92 per share

- 2019-02: CNY 3.48 per share

- 2019-03: CNY 3.52 per share

- 2019-04: CNY 3.33 per share

- 2019-05: CNY 3.00 per share

- 2019-06: CNY 3.04 per share

- 2019-07: CNY 2.95 per share

- 2019-08: CNY 2.75 per share

- 2019-09: CNY 2.79 per share

- 2019-10: CNY 2.74 per share

- 2019-11: CNY 2.68 per share

- 2019-12: CNY 2.80 per share

- 2020-01: CNY 2.69 per share

- 2020-02: CNY 2.72 per share

- 2020-03: CNY 2.62 per share

- 2020-04: CNY 2.57 per share

- 2020-05: CNY 2.50 per share

- 2020-06: CNY 2.51 per share

- 2020-07: CNY 2.80 per share

- 2020-08: CNY 2.82 per share

- 2020-09: CNY 2.65 per share

- 2020-10: CNY 2.59 per share

- 2020-11: CNY 2.80 per share

- 2020-12: CNY 2.73 per share

- 2021-01: CNY 2.82 per share

- 2021-02: CNY 3.31 per share

- 2021-03: CNY 3.42 per share

- 2021-04: CNY 3.08 per share

- 2021-05: CNY 3.03 per share

- 2021-06: CNY 2.98 per share

- 2021-07: CNY 3.74 per share

- 2021-08: CNY 5.01 per share

- 2021-09: CNY 4.35 per share

- 2021-10: CNY 4.06 per share

- 2021-11: CNY 3.79 per share

- 2021-12: CNY 3.83 per share

- 2022-01: CNY 3.67 per share

- 2022-02: CNY 4.07 per share

- 2022-03: CNY 3.75 per share

- 2022-04: CNY 3.49 per share

- 2022-05: CNY 3.53 per share

- 2022-06: CNY 3.50 per share

- 2022-07: CNY 3.26 per share

- 2022-08: CNY 3.21 per share

- 2022-09: CNY 2.99 per share

- 2022-10: CNY 2.88 per share

- 2022-11: CNY 3.33 per share

- 2022-12: CNY 3.18 per share

- 2023-01: CNY 3.37 per share

- 2023-02: CNY 3.41 per share

- 2023-03: CNY 3.90 per share

- 2023-04: CNY 4.48 per share

- 2023-05: CNY 4.03 per share

- 2023-06: CNY 3.97 per share

- 2023-07: CNY 4.19 per share

- 2023-08: CNY 3.64 per share

- 2023-09: CNY 3.67 per share

- 2023-10: CNY 3.31 per share

- 2023-11: CNY 3.10 per share

- 2023-12: CNY 3.06 per share

- 2024-01: CNY 3.24 per share

- 2024-02: CNY 3.33 per share

- 2024-03: CNY 3.36 per share

- 2024-04: CNY 3.27 per share

- 2024-05: CNY 3.26 per share

- 2024-06: CNY 3.10 per share

- 2024-07: CNY 3.16 per share

- 2024-08: CNY 2.95 per share

- 2024-09: CNY 3.34 per share

- 2024-10: CNY 3.34 per share

- 2024-11: CNY 3.34 per share

- 2024-12: CNY 3.30 per share

- 2025-01: CNY 3.10 per share

- 2025-02: CNY 3.12 per share

- 2025-03: CNY 3.02 per share

- 2025-04: CNY 2.89 per share

- 2025-05: CNY 2.93 per share

- 2025-06: CNY 2.98 per share

- 2025-07: CNY 3.03 per share

- 2025-08: CNY 3.41 per share

- 2025-09: CNY 3.85 per share

- 2025-10: CNY 3.49 per share

- 2025-11: CNY 3.18 per share

- 2025-12: CNY 2.97 per share

- 2026-01: CNY 3.13 per share

- 2026-02: CNY 3.21 per share

- 2026-03: CNY 3.00 per share

- 2026-04: CNY 2.93 per share

- 2026-05: CNY 2.83 per share

- 2026-06: CNY 2.44 per share

- 2026-07: CNY 2.72 per share

- 2026-08: CNY 2.56 per share

- 2026-09: CNY 2.54 per share

- 2026-10: CNY 2.57 per share

## Annual estimated value (CNY per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.