# China Communications Construction (601800.SHG)

Canonical: https://gigainvestors.com/s/601800.SHG

Analysis as of: 2026-10-16T07:35:11.475Z. Financial observations: FY2003–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 6.09 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.10×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.06×

- FY2018: 0.05×

- FY2019: 0.05×

- FY2020: 0.04×

- FY2021: 0.04×

- FY2022: 0.04×

- FY2023: 0.05×

- FY2024: 0.05×

- FY2025: 0.04×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 4.3%

- ROIC, second-lowest year: 3.6%

- Typical minus recent gross margin: 1.6 pp

- Typical gross margin (annual median): 12.7%

- Recent gross margin (lower of latest and 3-year median): 11.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.6%

- ROIC including acquisitions, ten-year median: -0.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.4%

- FY2017: 7.0%

- FY2018: 5.7%

- FY2019: 4.9%

- FY2020: 3.8%

- FY2021: 4.0%

- FY2022: 3.9%

- FY2023: 4.5%

- FY2024: 3.6%

- FY2025: 2.9%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.03×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 3.3B

- Net income, five-year total: CNY 99B

- Return on incremental invested capital: 6.5%

- Working capital / revenue, annual change: -2.9 pp

- Working capital / revenue, change between three-year averages: -15.8 pp

- Working capital / revenue, final three-year average: 12.9%

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

- FY2021: -0.16×

- FY2022: 0.00×

- FY2023: -0.03×

- FY2024: 0.34×

- FY2025: -0.08×

### management: fail

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

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 5.7% vs 3.6%

- Per-share earnings: 1.09 to 1.84 (three-year endpoint medians)

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

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.1%

- Ordinary dilution, 5-year annual growth: 14.9%

- Market cap gain: CNY -85B

- Cumulative retained earnings: CNY 122B

- Diluted shares, 10-year annual growth: 3.1%

- Diluted shares, 5-year annual growth: 14.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 6.8%

- Per-share value change: CNY 0.75

- Per-share value, starting three-year median: CNY 1.09

- Per-share value, ending three-year median: CNY 1.84

- Buybacks concentrated in cheaper years (correlation): 0.32

- Average buyback yield: 13.5%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 106B

- Cumulative net income, 10 years: CNY 193B

- ROIC, first three-year median: 5.7%

- ROIC, last three-year median: 3.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.04

- FY2017: CNY 1.25

- FY2018: CNY 1.57

- FY2019: CNY 1.69

- FY2020: CNY 1.66

- FY2021: CNY 1.44

- FY2022: CNY 1.55

- FY2023: CNY 1.86

- FY2024: CNY 1.84

- FY2025: CNY 0.77

### accounting: pass

- Sloan accruals: -0.0%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: -1.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.02×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.73×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.6%

- FY2017: -2.6%

- FY2018: 1.1%

- FY2019: 1.3%

- FY2020: 0.2%

- FY2021: 2.2%

- FY2022: 1.2%

- FY2023: 0.7%

- FY2024: 0.6%

- FY2025: -0.0%

## Holders

## Price story

Down 51% since Apr 2023 · sales -5.9%

Story as of 2026-10-16T10:00:04.024Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -5.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 408B 

- FY2017: CNY 483B 

- FY2018: CNY 491B 

- FY2019: CNY 555B 

- FY2020: CNY 628B 

- FY2021: CNY 686B 

- FY2022: CNY 722B 

- FY2023: CNY 759B 

- FY2024: CNY 772B 

- FY2025: CNY 727B 

### Gross margin · FY2025

gross margin 11.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 15.4% 

- FY2017: 13.6% 

- FY2018: 13.5% 

- FY2019: 12.8% 

- FY2020: 13.1% 

- FY2021: 12.6% 

- FY2022: 11.8% 

- FY2023: 12.7% 

- FY2024: 12.3% 

- FY2025: 11.1% 

## Owner memo

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

### How it makes money

Operates in engineering & construction; annual sales are CNY 726.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.475Z); FY2025: revenue 726636000000; grossProfit 80558000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601800.SHG: China Communications Construction Company Limited, together with its subsidiaries, provides integrated services for large-scale infrastructure projects in Mainland China, Australia, Hong Kong, Africa, the Middle East, and Southeast Asia. It operates through four segments: Construction, Design, Dredging, and Others. The company engages in infrastructure construction, infrastructure design, and dredging activities. It is also involved in the investment, design, construction, operation, and management of projects related to ports, waterways, roads and bridges, railways, urban rail transit, municipal infrastructure, land reclamation, watershed management, water conservancy, construction, and environmental protection projects. The company was incorporated in 2006 and is based in Beijing, China. China Communications Construction Company Limited operates as a subsidiary of China Communications Construction Group (Ltd.).

### Why customers stay

Margins ranged from 11.1% to 12.7% during 2023–25; it earns 4.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.475Z); FY2023: grossProfit / revenue = 12.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.475Z); FY2024: grossProfit / revenue = 12.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.475Z); FY2025: grossProfit / revenue = 11.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.475Z); 10-year return on capital observations [[2016,0.05395010928487558],[2017,0.07044498105249168],[2018,0.05705259512314061],[2019,0.048753487438837284],[2020,0.03765553575074438],[2021,0.04036520577542513],[2022,0.03861541790619164],[2023,0.04522674447691914],[2024,0.03637776186220189],[2025,0.02861175908265525]]; median 0.042795975126172135. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 12% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.475Z); Gross margin observations: [[2021,0.1259191362429942],[2022,0.11813579086136224],[2023,0.12674922690390872]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CNY 257 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.475Z); FY2017: growth capex 11619273878.945633; upkeep 29117419737.054367; owner earnings 1088283262.945633. Growth capex / owner earnings = 10.67669996825642.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.475Z); FY2022: growth capex 3614645763.7757187; upkeep 30422070231.22428; owner earnings 93277768.77571869. Growth capex / owner earnings = 38.75141752658061.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.475Z); FY2024: growth capex 1294511794.544201; upkeep 25973589205.4558; owner earnings 7931635794.544201. Growth capex / owner earnings = 0.1632086782697.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.475Z); Dividend observations: [[2016,16864701385],[2017,17702118989],[2018,18151328735],[2019,4450144000],[2020,4482331000],[2021,2924054000],[2022,26954945929],[2023,3509000000],[2024,7042241000],[2025,4938000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.475Z); FY2025: cash repurchases 257000000 CNY.

### Are managers owners

Insiders own 79.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601800.SHG SharesStats.PercentInsiders = 79.739 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.2 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.475Z); Closing price 6.09 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 37.276018318208465; price multiple 0.16337581841527257. FY2025 cash earnings/share -0.06267706021222422. Closing-price date 2026-10-15.

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

- 2016-10: CNY 13.44 per share

- 2016-11: CNY 16.03 per share

- 2016-12: CNY 15.19 per share

- 2017-01: CNY 15.84 per share

- 2017-02: CNY 17.98 per share

- 2017-03: CNY 17.91 per share

- 2017-04: CNY 17.33 per share

- 2017-05: CNY 15.64 per share

- 2017-06: CNY 15.89 per share

- 2017-07: CNY 16.50 per share

- 2017-08: CNY 16.03 per share

- 2017-09: CNY 15.31 per share

- 2017-10: CNY 15.08 per share

- 2017-11: CNY 13.93 per share

- 2017-12: CNY 12.80 per share

- 2018-01: CNY 14.20 per share

- 2018-02: CNY 13.78 per share

- 2018-03: CNY 12.85 per share

- 2018-04: CNY 13.34 per share

- 2018-05: CNY 12.26 per share

- 2018-06: CNY 11.39 per share

- 2018-07: CNY 13.58 per share

- 2018-08: CNY 12.54 per share

- 2018-09: CNY 12.78 per share

- 2018-10: CNY 12.47 per share

- 2018-11: CNY 11.83 per share

- 2018-12: CNY 11.26 per share

- 2019-01: CNY 10.63 per share

- 2019-02: CNY 12.35 per share

- 2019-03: CNY 12.51 per share

- 2019-04: CNY 12.44 per share

- 2019-05: CNY 10.92 per share

- 2019-06: CNY 11.32 per share

- 2019-07: CNY 10.96 per share

- 2019-08: CNY 9.98 per share

- 2019-09: CNY 10.11 per share

- 2019-10: CNY 9.41 per share

- 2019-11: CNY 9.00 per share

- 2019-12: CNY 9.16 per share

- 2020-01: CNY 8.40 per share

- 2020-02: CNY 8.73 per share

- 2020-03: CNY 8.26 per share

- 2020-04: CNY 8.06 per share

- 2020-05: CNY 7.67 per share

- 2020-06: CNY 7.34 per share

- 2020-07: CNY 7.90 per share

- 2020-08: CNY 7.95 per share

- 2020-09: CNY 7.43 per share

- 2020-10: CNY 7.39 per share

- 2020-11: CNY 7.92 per share

- 2020-12: CNY 7.26 per share

- 2021-01: CNY 6.89 per share

- 2021-02: CNY 7.01 per share

- 2021-03: CNY 7.11 per share

- 2021-04: CNY 6.77 per share

- 2021-05: CNY 6.77 per share

- 2021-06: CNY 6.48 per share

- 2021-07: CNY 6.56 per share

- 2021-08: CNY 7.30 per share

- 2021-09: CNY 8.24 per share

- 2021-10: CNY 7.40 per share

- 2021-11: CNY 7.05 per share

- 2021-12: CNY 8.58 per share

- 2022-01: CNY 9.03 per share

- 2022-02: CNY 9.34 per share

- 2022-03: CNY 9.45 per share

- 2022-04: CNY 10.86 per share

- 2022-05: CNY 9.61 per share

- 2022-06: CNY 9.28 per share

- 2022-07: CNY 8.11 per share

- 2022-08: CNY 8.04 per share

- 2022-09: CNY 7.11 per share

- 2022-10: CNY 6.69 per share

- 2022-11: CNY 9.06 per share

- 2022-12: CNY 8.05 per share

- 2023-01: CNY 8.55 per share

- 2023-02: CNY 9.23 per share

- 2023-03: CNY 10.56 per share

- 2023-04: CNY 12.35 per share

- 2023-05: CNY 10.59 per share

- 2023-06: CNY 10.91 per share

- 2023-07: CNY 11.67 per share

- 2023-08: CNY 9.44 per share

- 2023-09: CNY 9.16 per share

- 2023-10: CNY 8.12 per share

- 2023-11: CNY 7.70 per share

- 2023-12: CNY 7.60 per share

- 2024-01: CNY 8.75 per share

- 2024-02: CNY 8.56 per share

- 2024-03: CNY 8.62 per share

- 2024-04: CNY 8.89 per share

- 2024-05: CNY 8.80 per share

- 2024-06: CNY 8.94 per share

- 2024-07: CNY 8.45 per share

- 2024-08: CNY 8.40 per share

- 2024-09: CNY 9.67 per share

- 2024-10: CNY 10.28 per share

- 2024-11: CNY 10.58 per share

- 2024-12: CNY 10.45 per share

- 2025-01: CNY 9.42 per share

- 2025-02: CNY 9.76 per share

- 2025-03: CNY 9.15 per share

- 2025-04: CNY 8.85 per share

- 2025-05: CNY 8.79 per share

- 2025-06: CNY 8.89 per share

- 2025-07: CNY 9.20 per share

- 2025-08: CNY 9.16 per share

- 2025-09: CNY 8.74 per share

- 2025-10: CNY 8.72 per share

- 2025-11: CNY 8.52 per share

- 2025-12: CNY 8.24 per share

- 2026-01: CNY 8.16 per share

- 2026-02: CNY 8.14 per share

- 2026-03: CNY 7.61 per share

- 2026-04: CNY 7.01 per share

- 2026-05: CNY 6.45 per share

- 2026-06: CNY 5.71 per share

- 2026-07: CNY 6.33 per share

- 2026-08: CNY 5.93 per share

- 2026-09: CNY 5.94 per share

- 2026-10: CNY 6.08 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.

## Reported holder observations