China Aluminum International Engineering Corporation Limited Class H (2068) AI Stock Analysis

• Market Cap: HK$18.41B
• Dividend Yield: N/A
• Average Volume (3M): 24.50M
• Price to Earnings (P/E): 83.2
• Beta (1Y): 0.90
• Revenue Growth: -1.75%
• EPS Growth: N/A
• Country: HK
• Employees: 10,853
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 399,476,000
• 10 Day Avg. Volume: 7,504,850
• 30 Day Avg. Volume: 24,498,405
• PEG Ratio: -0.21
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -1.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$2.50 ▲(7.30% Upside)

The score is held down primarily by weak financial performance (high leverage and poor cash generation) and a very high P/E valuation. These are only partly offset by moderately positive technical momentum (price above major moving averages with positive MACD).

Positive Factors

Market leadership in aluminum engineering

Specialization and a strong reputation in aluminum engineering suggest durable competitive positioning. Deep sector expertise and track record in large EPC projects improve the firm's ability to win complex mandates, sustain client relationships, and capture recurring contract opportunities over multiple cycles.

Diversified EPC, consulting and equipment sales

A multi‑pronged revenue model—engineering, procurement, construction management, consulting and equipment sales—reduces reliance on any single income stream. This structural diversification helps smooth project-driven volatility and creates cross‑sell synergies that support steadier long‑term cash generation.

Improving gross profit margin

A gradual improvement in gross margin signals operational efficiency gains on contracts and project execution. If sustained, these gains can translate into higher sustainable operating margins, better competitive bidding flexibility, and an enhanced ability to absorb cost pressures across future multi‑year projects.

Negative Factors

Very high leverage (debt heavy)

Extremely high leverage materially raises financial risk: interest obligations and covenant pressure constrain strategic flexibility, limit the ability to self‑fund projects, and increase vulnerability to market or sector downturns. Deleveraging will likely require sustained cash generation or asset sales.

Negative operating and free cash flow

Persistent negative operating and free cash flow undermines the firm’s capacity to fund working capital and capex internally. Over time this forces reliance on external financing, heightens refinancing risk given high leverage, and can limit investment in capabilities needed to sustain growth.

Weak revenue trend and low profitability

A slight revenue decline/weak growth combined with low net margins suggests structural demand or execution pressures. Sustained weak top‑line and thin profitability erode returns on equity, hinder deleveraging, and reduce funds available for reinvestment, threatening long‑term competitiveness.

China Aluminum International Engineering Corporation Limited Class H Business Overview & Revenue Model

Company Description

China Aluminum International Engineering Corporation Limited Class H (2068) is a leading engineering and construction company based in China, specializing in the aluminum industry. The company provides a range of services including project design, engineering, procurement, and construction management for aluminum production facilities. It operates primarily in the sectors of metallurgy, chemical engineering, and environmental engineering, catering to both domestic and international clients. The company is known for its innovative solutions and has established a strong reputation in the aluminum sector, contributing to the modernization and efficiency of aluminum production processes.

How the Company Makes Money

The company generates revenue primarily through the execution of large-scale engineering and construction projects, particularly in the aluminum industry. Its revenue model is based on contract fees charged for project management, engineering services, and construction activities. Key revenue streams include project contracts, consulting services, and the sale of technology and equipment used in aluminum production. Additionally, the company benefits from partnerships with other firms in the aluminum sector, which can enhance its capabilities and reach. Factors contributing to its earnings include the growing demand for aluminum in various industries, government investments in infrastructure, and the company's capacity to secure contracts for new projects both domestically and overseas.

China Aluminum International Engineering Corporation Limited Class H Financial Statement Overview

Summary

The company shows revenue growth and operational improvement, but low profitability margins and negative cash flow highlight financial challenges. The balance sheet indicates reduced leverage, though high debt levels remain a concern.

Income Statement

The company experienced a revenue growth of 7.82% from 2023 to 2024, indicating a positive trend. However, the net profit margin is low at 0.92% in 2024, though improved from a negative margin in 2023. Gross profit margin remains modest at 12.21%, suggesting moderate profitability. The EBIT margin improved significantly from -13.25% in 2023 to 1.41% in 2024, showing operational recovery. Yet, the overall profitability remains weak, impacting the score.

Balance Sheet

The debt-to-equity ratio decreased from 1.83 in 2023 to 1.49 in 2024, indicating improved leverage. The return on equity (ROE) is low at 3.36% in 2024, reflecting limited shareholder returns. The equity ratio remained stable at 15.99%, suggesting a balanced capital structure. The reduction in debt levels is a positive sign, but the company still faces high leverage risks.

Cash Flow

The company reported a negative free cash flow in 2024, down from a positive flow in 2023, highlighting cash management challenges. Operating cash flow to net income ratio is negative, indicating inefficiencies in converting profits into cash. The financial stability is weakened by poor cash flow metrics, reflected in a lower score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.96B	23.94B	22.22B	23.70B	23.90B	23.03B
Gross Profit	2.94B	3.03B	1.60B	3.02B	2.79B	2.07B
EBITDA	668.35M	1.01B	-2.32B	1.12B	-44.67M	-656.73M
Net Income	167.78M	221.18M	-2.66B	112.46M	―	-1.98B
Balance Sheet
Total Assets	40.43B	41.16B	40.94B	47.39B	58.83B	54.51B
Cash, Cash Equivalents and Short-Term Investments	3.16B	3.17B	4.76B	7.67B	7.65B	7.28B
Total Debt	9.59B	13.17B	8.97B	12.59B	20.87B	17.54B
Total Liabilities	31.49B	32.31B	33.69B	36.94B	42.31B	38.88B
Stockholders Equity	6.66B	6.58B	2.27B	7.53B	7.64B	8.73B
Cash Flow
Free Cash Flow	-975.10M	-2.77B	680.01M	-3.94B	―	―
Operating Cash Flow	-862.35M	-2.69B	731.59M	524.87M	734.22M	610.74M
Investing Cash Flow	-106.37M	662.39M	85.67M	-4.32B	-4.08B	-4.16B
Financing Cash Flow	178.26M	1.84B	-4.41B	3.87B	3.44B	1.03B

China Aluminum International Engineering Corporation Limited Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2068, the sentiment is Positive. The current price of 2.33 is below the 20-day moving average (MA) of 2.54, below the 50-day MA of 2.56, and above the 200-day MA of 2.30, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 55.00 is Neutral, neither overbought nor oversold. The STOCH value of 36.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2068.

China Aluminum International Engineering Corporation Limited Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2386	78 Outperform	HK$34.49B	12.64	8.27%	5.31%	11.89%	8.49%
1599	70 Outperform	HK$1.82B	3.25	―	8.47%	-17.82%	-41.82%
2355	65 Neutral	HK$2.08B	10.93	1.40%	3.23%	-27.65%	-68.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1726	53 Neutral	HK$1.55B	-19.35	-68.32%	―	26.40%	-6.44%
2236	52 Neutral	HK$1.63B	6.02	9.56%	―	96.63%	―
2068	44 Neutral	HK$18.41B	83.23	3.35%	―	-1.75%	―

China Aluminum International Engineering Corporation Limited Class H Corporate Events

China Aluminum International Reports Decline in Q3 Profits Amid Revenue Growth

China Aluminum International Engineering Corporation Limited released its unaudited financial results for the third quarter ending September 30, 2025. The company reported a slight increase in operating revenue by 1.64% compared to the same period last year, but experienced significant declines in total profit and net profit attributable to shareholders, decreasing by 44.07% and 82.90% respectively. The results indicate challenges in maintaining profitability, which may impact stakeholders’ confidence and the company’s market positioning.

The most recent analyst rating on (HK:2068) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on China Aluminum International Engineering Corporation Limited Class H stock, see the HK:2068 Stock Forecast page.

China Aluminum International to Review Q3 Results in Upcoming Board Meeting

China Aluminum International Engineering Corporation Limited has announced that its board of directors will meet on October 28, 2025, to review and approve the company’s quarterly results for the third quarter ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders and market positioning.

The most recent analyst rating on (HK:2068) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on China Aluminum International Engineering Corporation Limited Class H stock, see the HK:2068 Stock Forecast page.