# China Energy Engineering (601868.SHG)

Canonical: https://gigainvestors.com/s/601868.SHG

Analysis as of: 2026-10-16T07:35:05.745Z. Financial observations: FY2012–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

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

Share price: CNY 2.35 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: 0.12×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.04×

- FY2017: 0.05×

- FY2018: 0.05×

- FY2019: 0.05×

- FY2020: 0.05×

- FY2021: 0.05×

- FY2022: 0.04×

- FY2023: 0.03×

- FY2024: 0.03×

- 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: 5.9%

- ROIC, second-lowest year: 3.7%

- Typical minus recent gross margin: 0.7 pp

- Typical gross margin (annual median): 12.4%

- Recent gross margin (lower of latest and 3-year median): 11.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.7%

- ROIC including acquisitions, ten-year median: -1.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 8.8%

- FY2017: 7.7%

- FY2018: 6.0%

- FY2019: 5.9%

- FY2020: 6.0%

- FY2021: 6.9%

- FY2022: 4.7%

- FY2023: 4.3%

- FY2024: 3.7%

- FY2025: 3.6%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -0.88×

- Cash conversion uses consolidated totals: No

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

- Net income, five-year total: CNY 37B

- Return on incremental invested capital: 2.5%

- Working capital / revenue, annual change: 0.9 pp

- Working capital / revenue, change between three-year averages: 1.0 pp

- Working capital / revenue, final three-year average: 23.8%

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

- FY2021: 0.93×

- FY2022: 0.33×

- FY2023: -0.59×

- FY2024: -1.72×

- FY2025: -3.73×

### management: fail

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 7.7% vs 3.7%

- Per-share earnings: 0.15 to 0.19 (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: 3.5%

- Ordinary dilution, 5-year annual growth: 15.8%

- Diluted shares, 10-year annual growth: 3.5%

- Diluted shares, 5-year annual growth: 15.8%

- Per-share value growth: 2.9%

- Per-share value change: CNY 0.04

- Per-share value, starting three-year median: CNY 0.15

- Per-share value, ending three-year median: CNY 0.19

- Buybacks concentrated in cheaper years (correlation): -0.80

- Average buyback yield: 12.1%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 97B

- Cumulative net income, 10 years: CNY 61B

- ROIC, first three-year median: 7.7%

- ROIC, last three-year median: 3.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.15

- FY2017: CNY 0.19

- FY2018: CNY 0.15

- FY2019: CNY 0.17

- FY2020: CNY 0.23

- FY2021: CNY 0.18

- FY2022: CNY 0.19

- FY2023: CNY 0.19

- FY2024: CNY 0.20

- FY2025: CNY 0.14

### accounting: pass

- Sloan accruals: -0.7%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.11×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.0%

- FY2017: -0.0%

- FY2018: -0.1%

- FY2019: -1.4%

- FY2020: -0.4%

- FY2021: -0.4%

- FY2022: -0.0%

- FY2023: -0.2%

- FY2024: -0.3%

- FY2025: -0.7%

## Holders

## Price story

Up 8% since Oct 2023 · sales +3.6%

Story as of 2026-10-16T10:00:03.626Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +3.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 222B 

- FY2017: CNY 234B 

- FY2018: CNY 224B 

- FY2019: CNY 247B 

- FY2020: CNY 270B 

- FY2021: CNY 322B 

- FY2022: CNY 366B 

- FY2023: CNY 406B 

- FY2024: CNY 437B 

- FY2025: CNY 452B 

### Gross margin · FY2025

gross margin 11.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 11.4% 

- FY2017: 11.8% 

- FY2018: 13.3% 

- FY2019: 13.1% 

- FY2020: 13.5% 

- FY2021: 13.0% 

- FY2022: 12.3% 

- FY2023: 12.5% 

- FY2024: 12.3% 

- FY2025: 11.7% 

## Owner memo

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

### How it makes money

Operates in engineering & construction; annual sales are CNY 452.3 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.745Z); FY2025: revenue 452296120000; grossProfit 52964017000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601868.SHG: China Energy Engineering Corporation Limited provides solutions and services in the energy, power and infrastructure sectors in the People's Republic of China and internationally. It operates through five segment: Survey, Design and Consulting; Construction and contracting; Industrial manufacturing; Industrial manufacturing; and others. The company offers planning and research, consulting, evaluation, engineering survey, design, supervision, project management, preparation, and specification services for domestic and foreign thermal power, hydropower, nuclear power, wind power, solar power generation, and power grid projects, as well as consulting services for power industry. It is also involved in the provision of project contracting, engineering and construction, and project operation and maintenance to domestic and overseas tradition energy, new energy, smart energy, water conservancy, ecological environmental protection, transportation, municipal, buildings, and structures. In addition, the company designs, manufactures, and sells construction materials, civil explosives, cement products, auxiliary machinery and equipment, energy-saving and environmental protection equipment, and other equipment related to the power industry, as well as provides blasting services, as well as engages in the investment and operation of traditional and new energy, smart energy, water conservancy, ecological environmental protection, and transportation projects; provision of financial services; and investment and development of real estate properties. Further, it provides logistics and trading, leasing and commercial business, software and information, and other services, as well as involved in project investment; asset and supply chain management; and Building construction investment business. The company was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

### Why customers stay

Margins ranged from 11.7% to 12.5% during 2023–25; it earns 5.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.745Z); FY2023: grossProfit / revenue = 12.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.745Z); FY2024: grossProfit / revenue = 12.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.745Z); FY2025: grossProfit / revenue = 11.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.745Z); 10-year return on capital observations [[2016,0.08785127186612197],[2017,0.07739323126978169],[2018,0.05991226047094458],[2019,0.05874144132796584],[2020,0.06011397335669881],[2021,0.06874378256986512],[2022,0.046513694145082905],[2023,0.042610879181946816],[2024,0.03712814471661591],[2025,0.03559640483546772]]; median 0.059326850899455205. 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 2026-10-16T07:35:05.745Z); Gross margin observations: [[2021,0.1303692047648574],[2022,0.12284593950082628],[2023,0.1250051572309175]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.745Z); FY2016: growth capex 2817541982.9330177; upkeep 4567518017.066982; owner earnings 2990952982.9330177. Growth capex / owner earnings = 0.9420214891409132.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.745Z); FY2021: growth capex 9394278886.331001; upkeep 4648703113.668999; owner earnings 6055436216.465217. Growth capex / owner earnings = 1.5513793805287228.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.745Z); FY2022: growth capex 8037932547.310616; upkeep 11944781452.689384; owner earnings 2546568357.4335384. Growth capex / owner earnings = 3.1563780818400407.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.745Z); Dividend observations: [[2016,124885000],[2017,888604000],[2018,918624000],[2019,918624000],[2020,918624000],[2021,675459000],[2022,938051000],[2023,1050617000],[2024,12048394000],[2025,1092308000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 59.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601868.SHG SharesStats.PercentInsiders = 59.57900000000001 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 2026-10-16T07:35:05.745Z); Closing price 2.35 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 10.84872852194772; price multiple 0.2166152462240888. FY2025 cash earnings/share -0.5219534407914945. Closing-price date 2026-10-15.

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

- 2021-09: CNY 3.02 per share

- 2021-10: CNY 2.38 per share

- 2021-11: CNY 2.45 per share

- 2021-12: CNY 2.73 per share

- 2022-01: CNY 2.64 per share

- 2022-02: CNY 2.70 per share

- 2022-03: CNY 2.44 per share

- 2022-04: CNY 2.42 per share

- 2022-05: CNY 2.33 per share

- 2022-06: CNY 2.37 per share

- 2022-07: CNY 2.29 per share

- 2022-08: CNY 2.26 per share

- 2022-09: CNY 2.24 per share

- 2022-10: CNY 2.29 per share

- 2022-11: CNY 2.45 per share

- 2022-12: CNY 2.29 per share

- 2023-01: CNY 2.35 per share

- 2023-02: CNY 2.38 per share

- 2023-03: CNY 2.41 per share

- 2023-04: CNY 2.71 per share

- 2023-05: CNY 2.40 per share

- 2023-06: CNY 2.34 per share

- 2023-07: CNY 2.45 per share

- 2023-08: CNY 2.29 per share

- 2023-09: CNY 2.26 per share

- 2023-10: CNY 2.18 per share

- 2023-11: CNY 2.13 per share

- 2023-12: CNY 2.10 per share

- 2024-01: CNY 2.11 per share

- 2024-02: CNY 2.18 per share

- 2024-03: CNY 2.12 per share

- 2024-04: CNY 2.20 per share

- 2024-05: CNY 2.19 per share

- 2024-06: CNY 2.12 per share

- 2024-07: CNY 2.21 per share

- 2024-08: CNY 2.13 per share

- 2024-09: CNY 2.41 per share

- 2024-10: CNY 2.34 per share

- 2024-11: CNY 2.34 per share

- 2024-12: CNY 2.29 per share

- 2025-01: CNY 2.25 per share

- 2025-02: CNY 2.30 per share

- 2025-03: CNY 2.27 per share

- 2025-04: CNY 2.20 per share

- 2025-05: CNY 2.23 per share

- 2025-06: CNY 2.23 per share

- 2025-07: CNY 2.59 per share

- 2025-08: CNY 2.45 per share

- 2025-09: CNY 2.41 per share

- 2025-10: CNY 2.41 per share

- 2025-11: CNY 2.35 per share

- 2025-12: CNY 2.35 per share

- 2026-01: CNY 2.43 per share

- 2026-02: CNY 2.54 per share

- 2026-03: CNY 2.90 per share

- 2026-04: CNY 2.83 per share

- 2026-05: CNY 2.89 per share

- 2026-06: CNY 2.67 per share

- 2026-07: CNY 2.60 per share

- 2026-08: CNY 2.49 per share

- 2026-09: CNY 2.39 per share

- 2026-10: CNY 2.39 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 2.44 per share, central CNY 2.57 per share, high CNY 2.74 per share

- FY2017: low CNY 2.48 per share, central CNY 2.62 per share, high CNY 2.80 per share

- FY2018: low CNY 2.50 per share, central CNY 2.63 per share, high CNY 2.81 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.