Breaking Down Shaanxi Construction Engineering Group Corporation Limited Financial Health: Key Insights for Investors

Investors scrutinizing Shaanxi Construction Engineering Group Corporation Limited will want to weigh a stark mix of metrics: 2024 revenue fell to CNY 151.14 billion (down 16.29% from CNY 180.55 billion) and TTM revenue as of 30 Sep 2025 was CNY 136.60 billion (-13.53% YoY), while 2024 net income dropped to CNY 2.96 billion (-25.30%) with EPS at CNY 0.80; the balance sheet shows CNY 57.50 billion total debt versus CNY 39.19 billion equity (debt/equity 1.47) and a negative net cash position of CNY 28.84 billion, supported by just CNY 13.43 billion market cap (P/S 0.10) as of 15 Dec 2025; profitability and liquidity flags include a TTM gross margin of 11.71%, operating margin 4.05%, profit margin 1.72%, ROE 7.10%, ROA 1.04%, negative operating cash flow (TTM) of CNY 3.04 billion and free cash flow -CNY 3.98 billion, with an Altman Z-Score of 0.64 and Piotroski F-Score of 4; valuation appears stretched on asset terms (P/B 0.37) yet cheap on earnings (trailing P/E 5.93, forward P/E 4.62, earnings yield ~16.66-17.88%), and near-term catalysts include projected 11.7% five‑year revenue CAGR, EPS estimates rising toward CNY 1.25 by 2025, a 58.19% surge in overseas revenue in 2024, secured contracts (CNY 2.50 billion pharmaceutical and CNY 2.03 billion 5G tower) and targeted PPPs expected to generate ~CNY 500 million over three years-key data points readers should examine in detail below.

Shaanxi Construction Engineering Group Corporation Limited (600248.SS) - Revenue Analysis

• Total revenue (FY 2024): CNY 151.14 billion, down 16.29% from CNY 180.55 billion in FY 2023.
• Revenue (TTM as of 30 Sep 2025): CNY 136.60 billion, a 13.53% year-over-year decline versus the prior TTM period.
• Construction segment (FY 2024): CNY 140.27 billion, down 15.63% year-over-year.
• Petrochemical engineering services (FY 2024): CNY 9.42 billion, down 24.82% year-over-year.
• Revenue per employee (FY 2024): CNY 4.23 million (total employees: 32,283).
• Market capitalization (15 Dec 2025): CNY 13.43 billion; Price-to-Sales (P/S): 0.10.

• Segment concentration: construction accounted for ~92.8% of FY 2024 revenue (CNY 140.27bn of CNY 151.14bn), leaving petrochemical engineering and other services as smaller, more volatile contributors.
• Efficiency indicator: revenue per employee of CNY 4.23m reflects scale but also the impact of declining revenue on per-head productivity.
• Valuation context: a market cap of CNY 13.43bn and P/S of 0.10 imply market pricing that reflects continued revenue pressure and potential investor concerns over near-term growth.

Shaanxi Construction Engineering Group Corporation Limited (600248.SS) - Profitability Metrics

• Net income (2024): CNY 2.96 billion (down 25.30% vs 2023's CNY 3.96 billion)
• EPS (2024): CNY 0.80 (2023: CNY 1.01)
• Gross profit margin (TTM to 2025-09-30): 11.71%
• Operating margin (TTM to 2025-09-30): 4.05%
• Profit margin (TTM to 2025-09-30): 1.72%
• Return on equity (TTM to 2025-09-30): 7.10%
• Return on assets (TTM to 2025-09-30): 1.04%
• Earnings yield (year ending 2024-12-31): 17.88%

• Declining net income and EPS in 2024 indicate near-term earnings pressure despite a relatively high earnings yield for 2024 (17.88%), suggesting valuation or cash-flow considerations that may attract yield-focused investors.
• Margins (gross 11.71%, operating 4.05%, profit 1.72%) show compressed downstream profitability-cost control and project mix will be key drivers for margin recovery.
• ROE of 7.10% versus ROA of 1.04% implies leverage is contributing to equity returns; monitor balance-sheet leverage and working capital trends.

Shaanxi Construction Engineering Group Corporation Limited (600248.SS) - Debt vs. Equity Structure

• Total debt: CNY 57.50 billion
• Total equity: CNY 39.19 billion
• Debt-to-equity ratio: 1.47
• Interest coverage ratio: 2.39
• Total liabilities: CNY 96.69 billion
• Total assets: CNY 135.88 billion
• Equity ratio (Equity / Total assets): 28.86%
• Net cash position: negative CNY 28.84 billion (net debt)
• Book value per share: CNY 7.39
• Market price (Dec 15, 2025): CNY 3.600

• The debt-to-equity of 1.47x signals material leverage; equity funds ~28.9% of assets.
• An interest coverage ratio of 2.39x indicates limited cushion for interest payments if operating earnings weaken.
• Negative net cash of CNY 28.84 billion shows reliance on external financing and potential refinancing exposure.
• Market price (CNY 3.600) is substantially below book value (CNY 7.39), implying market-implied concerns or valuation opportunity depending on outlook.

Shaanxi Construction Engineering Group Corporation Limited (600248.SS) - Liquidity and Solvency

• Short-term liquidity: Current ratio 1.08 and quick ratio 1.05 indicate minimal buffer to absorb short-term obligations; inventory has limited impact on immediate coverage.
• Cash generation: Operating cash flow of -CNY 3.04 billion and free cash flow of -CNY 3.98 billion show operations and capex consumed cash rather than produced it.
• Bankruptcy risk: Altman Z‑Score of 0.64 places the company in a zone associated with higher financial distress risk.
• Fundamental health: Piotroski F‑Score of 4 signals mixed/weak quality of financial improvements across profitability, leverage, liquidity, and operating efficiency metrics.

• Implications for investors:
  • Working capital management and near-term funding sources warrant close monitoring.
  • Negative FCF suggests reliance on external financing (debt or equity) to fund capex and operations.
  • Low Z‑Score increases probability of covenant pressures or restructuring risk if adverse events occur.

Shaanxi Construction Engineering Group Corporation Limited (600248.SS) - Valuation Analysis

• Trailing P/E: 5.93 - low absolute P/E suggesting bargain valuation versus historical/sector norms.
• Forward P/E: 4.62 - market expects continued earnings support, compressing forward multiple.
• P/B: 0.37 - stock trading well below book value, implying asset backing exceeds market cap.
• EV/EBITDA: 7.25 - moderate enterprise valuation relative to operating cash profits.
• EV/Revenue: 0.33 - low valuation relative to sales, consistent with deep value characteristics.
• Dividend yield: 3.58% (annual dividend CNY 0.14/share) - provides yield support to total return.
• Earnings yield: 16.66% (EPS / price for year ending 2024-12-31) - strong inverse of P/E indicating high earnings return per unit price.

Shaanxi Construction Engineering Group Corporation Limited (600248.SS) - Risk Factors

Key risk indicators and financial strains for Shaanxi Construction Engineering Group Corporation Limited (600248.SS) highlight elevated liquidity and solvency concerns, deteriorating profitability, and sector-specific exposures that investors should closely monitor.

• Operating cash flow: negative CNY 8.2 billion (most recent fiscal year), signaling working capital pressure and collection inefficiencies.
• Net cash position: negative CNY 28.84 billion - a net debt position that constrains financial flexibility and increases refinancing risk.
• Altman Z-Score: 0.64, well below safe thresholds and indicative of a higher probability of bankruptcy or severe financial distress.
• Piotroski F-Score: 4, suggesting mixed/weak signals on profitability, leverage, liquidity, and operational efficiency.
• Revenue & profitability deterioration: significant year-over-year declines in top-line and margins (see table below), which can erode investor confidence and credit standing.
• Industry exposure: concentrated business in construction and petrochemical sectors, subject to regulatory changes, project cycles, commodity-price volatility, and demand fluctuations.

• Project concentration and receivables: large contracts in construction and petrochemical verticals increase counterparty and project-cycle risk; prolonged receivable days exacerbate cash strain.
• Refinancing & interest-rate risk: elevated net debt means the company is sensitive to credit market conditions and rising funding costs.
• Regulatory & market demand risk: policy shifts in infrastructure spending, environmental regulation in petrochemical projects, or downturns in property/industrial investment could materially reduce order inflows.
• Operational execution risk: cost overruns, delays, or contract disputes on large-scale builds could further impair margins and cash flow.
• Investor confidence: the combination of negative OCF, worsening leverage, low Altman Z-Score, and sliding revenue trends may limit equity market support and valuation recovery.

Further context on corporate priorities and strategic positioning is available here: Mission Statement, Vision, & Core Values (2026) of Shaanxi Construction Engineering Group Corporation Limited.

Shaanxi Construction Engineering Group Corporation Limited (600248.SS) - Growth Opportunities

• Analysts project revenue to grow at a compound annual growth rate (CAGR) of 11.7% over the next five years, driven by rising demand for construction and infrastructure services.
• EPS is estimated to rise from CNY 0.90 in 2023 to CNY 1.25 by 2025, reflecting expected margin and profitability improvements.
• Strategic partnerships with technology firms are underway to integrate smart construction technologies (BIM, IoT-enabled monitoring, prefabrication automation) and improve project execution and margins.
• Focus on public-private partnerships (PPPs) for major infrastructure projects is expected to generate an estimated CNY 500 million in revenue over the next three years.
• Significant secured contracts include:
  • CNY 2.50 billion pharmaceutical intermediate project
  • CNY 2.03 billion 5G communication tower project
• Expansion into overseas markets produced a 58.19% increase in overseas revenue in 2024, opening additional growth avenues and diversification of backlog.
• For investor context and shareholder composition, see: Exploring Shaanxi Construction Engineering Group Corporation Limited Investor Profile: Who's Buying and Why?