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

• Market Cap: €14.94B
• Dividend Yield: N/A
• Average Volume (3M): 24.50M
• Price to Earnings (P/E): 74.2
• Beta (1Y): 0.93
• 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: 45 Neutral
• Price Target: HK$2.50 ▲(4.60% Upside)

The overall stock score is primarily influenced by financial performance challenges, including low profitability and negative cash flow. Technical analysis indicates bearish momentum, further impacting the score. The high P/E ratio suggests potential overvaluation, contributing to a cautious outlook.

Positive Factors

Revenue Growth

Revenue growth indicates the company's ability to expand its market reach and capture more business, which is crucial for long-term sustainability and competitiveness in the engineering and construction sector.

Operational Improvement

Improvement in EBIT margin suggests better operational efficiency and cost management, which can enhance profitability and provide a stronger foundation for future growth.

Leverage Reduction

Reduced leverage improves financial stability and reduces risk, allowing the company more flexibility to invest in growth opportunities and manage economic downturns.

Negative Factors

Low Profitability Margins

Low profitability margins indicate challenges in translating revenue into profit, which can limit reinvestment in business growth and affect long-term competitiveness.

Negative Cash Flow

Negative cash flow highlights difficulties in generating sufficient cash from operations, potentially impacting the company's ability to fund projects and meet financial obligations.

High Leverage Risks

High leverage can strain financial resources and limit strategic flexibility, posing risks to long-term financial health and ability to withstand economic fluctuations.

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

Company Description

China Aluminum International Engineering Corporation Limited operates as a technology, engineering service, and equipment provider in the nonferrous metals industry in the People's Republic of China and internationally. The company's Engineering Survey, Design and Consultancy business engages in the mining, ore dressing, smelting, and processing activities in the non-ferrous metal industry; geological survey and building construction activities in the construction industry; and engineering design activities in energy, chemical and environmental protection, etc. Its Engineering and Construction Contracting business provides engineering and construction contracting services for housing construction, highways, building materials, electricity, water conservancy, municipal utilities, steel structures, metallurgy, aluminum, chemical, mining, and other fields. The company's Equipment Manufacturing business is involved in the research, development, and manufacture of customized metallurgical and processing equipment, environmental protection equipment, mechanical and electronic equipment, industrial automation systems, and mine safety monitoring and emergency response intelligent systems for use in mining, ore dressing, smelting, and metal material processing areas. Its Trading business trades in raw materials and equipment. The company also offers construction supervision, IT consultancy, software development, technical, construction drawing examination, and pre-school education services. In addition, it engages in the concrete production, technical development, contract energy management, commodity trading, hot spring project development and operations management, real estate development, and industrial manufacturing businesses. The company was founded in 2003 and is headquartered in Beijing, the People's Republic of China. China Aluminum International Engineering Corporation Limited is a subsidiary of China Aluminum Group Limited.

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: Negative
• Last Price: 2.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2068, the sentiment is Negative. The current price of 2.39 is below the 20-day moving average (MA) of 2.48, below the 50-day MA of 2.56, and above the 200-day MA of 2.25, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 42.09 is Neutral, neither overbought nor oversold. The STOCH value of 11.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$32.30B	11.83	8.27%	5.41%	11.89%	8.49%
1599	70 Outperform	HK$1.81B	3.22	―	8.72%	-17.82%	-41.82%
2355	65 Neutral	€2.10B	11.04	1.40%	3.22%	-27.65%	-68.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1726	53 Neutral	HK$1.54B	-18.82	-68.32%	―	26.40%	-6.44%
2236	52 Neutral	HK$1.57B	5.94	9.56%	―	96.63%	―
2068	45 Neutral	€14.94B	74.22	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.

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.