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China Aluminum International Engineering Corporation Limited Class H (HK:2068)
:2068

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

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China Aluminum International Engineering Corporation Limited Class H

(Frankfurt:2068)

Rating:50Neutral
Price Target:
HK$2.00
▼(-2.44%Downside)
The company's financial performance is a primary concern, with low profitability and negative cash flow. Technical analysis shows a neutral trend, providing neither strong bullish nor bearish signals. Valuation suggests the stock may be overvalued, with no dividend yield to attract income-focused investors. Despite some operational improvements, financial challenges weigh heavily on the overall score.

China Aluminum International Engineering Corporation Limited Class H (2068) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionChina Aluminum International Engineering Corporation Limited Class H (2068) is a leading international engineering and construction company headquartered in Beijing, China. It operates primarily in the fields of engineering, procurement, and construction (EPC) services, with a particular focus on the non-ferrous metals industry, infrastructure, and environmental engineering. The company offers comprehensive project management services, including feasibility studies, engineering design, procurement, and construction supervision, catering to both domestic and international markets.
How the Company Makes MoneyThe company generates revenue primarily through its engineering, procurement, and construction (EPC) services. Key revenue streams include fees from project management, engineering design, procurement services, and construction supervision. China Aluminum International Engineering Corporation Limited secures contracts from various sectors, including non-ferrous metals, infrastructure, and environmental projects, which contribute significantly to its earnings. Additionally, the company may engage in strategic partnerships and joint ventures to enhance its service offerings and expand its market reach, further supporting its revenue growth.

China Aluminum International Engineering Corporation Limited Class H Financial Statement Overview

Summary
Overall, the company shows signs of revenue growth and operational improvement. However, low profitability margins and negative cash flow highlight financial challenges. The balance sheet indicates reduced leverage, though high debt levels remain a concern. The company must focus on enhancing cash flow and profitability for stronger financial health.
Income Statement
45
Neutral
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
55
Neutral
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
35
Negative
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
23.33B23.94B22.22B23.70B23.35B23.03B
Gross Profit
1.53B3.03B1.49B3.02B3.17B2.07B
EBIT
-1.47B338.77M-2.95B1.04B1.20B492.88M
EBITDA
-1.13B1.01B-2.32B1.12B-44.67M-881.20M
Net Income Common Stockholders
-1.64B221.18M-2.66B204.88M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.18B3.17B4.76B6.86B6.62B6.55B
Total Assets
41.67B41.16B40.94B47.39B58.83B54.51B
Total Debt
18.97B13.17B12.81B15.98B20.87B17.54B
Net Debt
14.79B10.00B9.47B9.13B14.25B10.99B
Total Liabilities
38.93B32.31B33.69B36.94B42.31B38.88B
Stockholders Equity
2.46B6.58B2.27B7.53B7.64B8.73B
Cash FlowFree Cash Flow
-1.38B-2.77B680.01M
Operating Cash Flow
-1.33B-2.69B731.59M524.87M734.22M610.74M
Investing Cash Flow
-64.31M662.39M85.67M
Financing Cash Flow
1.45B1.84B-4.41B3.87B3.44B1.03B

China Aluminum International Engineering Corporation Limited Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.05
Price Trends
50DMA
1.87
Positive
100DMA
1.89
Positive
200DMA
1.89
Positive
Market Momentum
MACD
0.03
Negative
RSI
58.05
Neutral
STOCH
71.96
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 2.05 is above the 20-day moving average (MA) of 1.91, above the 50-day MA of 1.87, and above the 200-day MA of 1.89, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.05 is Neutral, neither overbought nor oversold. The STOCH value of 71.96 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
€61.53B5.345.56%5.00%-19.10%-30.15%
71
Outperform
$65.39B6.6614.62%5.33%1.21%2.15%
66
Neutral
$4.46B12.155.40%4.71%4.16%-11.97%
50
Neutral
HK$13.46B29.777.03%2.57%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2068
China Aluminum International Engineering Corporation Limited Class H
1.98
0.19
10.61%
HK:1618
Metallurgical Corporation of China Ltd. Class H
1.56
-0.03
-2.07%
HK:3311
China State Construction International Holdings
12.54
2.24
21.77%

China Aluminum International Engineering Corporation Limited Class H Corporate Events

CHALIECO Completes Registration of Reserved Grant Under 2023 Share Incentive Scheme
Jun 16, 2025

China Aluminum International Engineering Corporation Limited has completed the registration of a reserved grant under its 2023 Restricted Share Incentive Scheme. This involves the allocation of 2,000,000 Restricted Shares at a price of RMB2.28 per share to 21 participants, representing 0.07% of the company’s total share capital. The completion of this registration marks a significant step in the company’s equity incentive strategy, potentially enhancing employee motivation and aligning interests with shareholders.

CHALIECO Announces 2024 AGM with Strategic Resolutions
May 30, 2025

China Aluminum International Engineering Corporation Limited has announced its 2024 Annual General Meeting, scheduled for June 30, 2025. The meeting will address several key resolutions, including the issuance of debt financing instruments, amendments to the Articles of Association, and the abolition of the Board of Supervisors. Additionally, the company will discuss its financial report, profit distribution plan, and capital expenditure plan for 2025. These resolutions indicate a strategic move towards restructuring and financial optimization, which could impact the company’s governance and operational efficiency.

CHALIECO Renews Key Agreements with China Aluminum Group
May 26, 2025

China Aluminum International Engineering Corporation Limited has renewed its Commodities Sales and Purchases Master Agreement, General Services Master Agreement, and Engineering Services Master Agreement with Aluminum Corporation of China Limited. These agreements, effective from January 1, 2026, to December 31, 2028, aim to support business needs and management arrangements. The renewal is expected to enhance the company’s operational capabilities and strengthen its market position in the aluminum industry by ensuring a steady supply of necessary commodities and services to China Aluminum Group.

China Aluminum International Proposes Governance Amendments
May 26, 2025

China Aluminum International Engineering Corporation Limited has announced proposed amendments to its Articles of Association, the Rules of Procedures of the Shareholders’ Meeting, and the Rules of Procedure of the Board of Directors. Additionally, the company plans to abolish the Board of Supervisors, transferring its powers to the Audit Committee of the Board of Directors. These changes are intended to improve operational standards and corporate governance, aligning with the latest legal requirements and the company’s current situation. The proposed amendments are subject to approval at the upcoming shareholders’ general meeting.

CHALIECO Announces New Board Nominee
May 26, 2025

China Aluminum International Engineering Corporation Limited announced a change in its board of directors, with Mr. Liu Changkui being nominated as a non-executive director for the company’s fifth session of the board. This change reflects the company’s ongoing efforts to strengthen its leadership team, potentially impacting its strategic direction and governance structure.

China Aluminum International Grants Reserved Restricted Shares Under 2023 Incentive Scheme
May 26, 2025

China Aluminum International Engineering Corporation Limited has announced the grant of 2,000,000 reserved restricted shares to 21 participants under its 2023 Restricted Share Incentive Scheme. This move is aimed at rewarding and retaining key management and technical personnel, potentially enhancing the company’s operational efficiency and competitive positioning in the market.

CHALIECO Reports Decline in Q1 2025 Financial Performance
Apr 22, 2025

China Aluminum International Engineering Corporation Limited reported a decrease in its key financial metrics for the first quarter ended March 31, 2025. The company’s operating revenue fell by 3.63% compared to the same period last year, while net profit attributable to shareholders dropped by 36.71%. Additionally, the net cash flows from operating activities showed improvement but remained negative. This decline in financial performance may impact the company’s market positioning and stakeholder confidence.

China Aluminum International Schedules Board Meeting to Review Q1 Results
Apr 8, 2025

China Aluminum International Engineering Corporation Limited has announced the scheduling of a board meeting on April 22, 2025. The meeting will focus on reviewing and approving the financial results for the first quarter ending March 31, 2025, which could have implications for the company’s future operations and stakeholder interests.

China Aluminum International Engineering Announces 2024 Financial Results
Mar 28, 2025

China Aluminum International Engineering Corporation Limited announced its consolidated results for the year ending December 31, 2024. The audited results, reviewed by the Audit Committee, will be published in the company’s 2024 Annual Report by the end of April 2025. This announcement reflects the company’s commitment to transparency and compliance with the Hong Kong Stock Exchange’s listing rules, potentially impacting its operations and stakeholder relations positively.

CHALIECO Announces Board Re-election and Appointment Plans
Mar 28, 2025

China Aluminum International Engineering Corporation Limited has announced plans for the re-election and appointment of directors and supervisors as the term of the fourth session of its Board is nearing expiration. The company aims to form the fifth session of the Board, which will consist of nine directors, to ensure the continuity of its operations. The announcement includes the nomination of candidates for executive, non-executive, and independent non-executive director positions. This move is significant for maintaining the company’s governance structure and ensuring its strategic direction, impacting stakeholders by providing stability and continuity in leadership.

China Aluminum International Announces RMB248 Million Asset Impairment for 2024
Mar 28, 2025

China Aluminum International Engineering Corporation Limited announced a provision for impairment of assets for the year 2024, amounting to approximately RMB248 million. This decision, made in accordance with the Accounting Standards of China for Business Enterprises, reflects a prudent approach to evaluating the company’s asset position, impacting its total profit under consolidated statements by reducing it by the same amount.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.