Risk factor
Strong & resilient to price shocks
Profitability factor
Greatly undervalued vs peers
About
XCMG Construction Machinery Co., Ltd. engages in the manufacture and sale of construction machinery in China. The company offers hoisting, mining, road, piling, non-excavation, concrete, sanitation, fire-fighting, tunnel, resource exploration, and port machineries; and excavators, loaders, special vehicles, and aerial working equipment. It offers construction machineries for lifting, mining, earth moving, mobile elevating work, piling and non-excavation, transportation, environment sanitation, firefighting, and safety and emergency rescue applications, as well as road, concrete, tunnel, and underground space construction. The company also exports its products. XCMG Construction Machinery Co., Ltd. was founded in 1943 and is based in Xuzhou, China.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBIT
Target Price
The average target price of 000425.SZ is 13 and suggests 28% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to inc