How much Chinese architecture is underrated

Brief introduction.

China State Construction is the first of the "Eight Major Construction Companies in China". The company ranked 9th in the Fortune Global 500 in 2022, 3rd in the Top 500 Chinese Enterprises, and 1st in ENR's "Top 250 Engineering Contractors in the World". In China, China State Construction has invested in the construction of more than 90% of skyscrapers over 300 meters, 3 4 key airports, 3 4 satellite launch bases, 1 3 urban comprehensive pipe corridors, 1 2 nuclear power plants, and one in every 25 Chinese uses Chinese architecture to build houses.

The above picture shows the financial report of China State Construction from 2018 to 2022, you can see that China State Construction has changed a lot in the past five years, and the revenue of China State Construction in 2018 was 12 trillion yuan, the profit is around 70 billion, and five years later, the revenue in 2022 will increase by 70%, officially entering the era of double trillion, and the profit will reach about 90 billion.

Because there are eight listed companies and more than 100 subsidiaries in China State Construction, and according to the requirements of the state, the profits of enterprise operations do not include the profits of holding subsidiaries in the calculation, and the profits from the operation of the parent company should be the mainstay. Therefore, according to this calculation, the net profit attributable to the parent company of China Construction in 2018 was 38.2 billion, and in 2022, the profit will be 50.9 billion.

The biggest problem of China Construction is that it has low profits, which is not criticized by China Construction alone, but by most central enterprises. Central enterprises generally serve the society, and their low profits are in response to the needs of the society. However, in the case of a giant like China Construction, the profit is more than 50 billion, and the market value is about 200 billion, which is really underestimated. So how much is Chinese architecture underestimated? Take a look at the diagram below.

This ** is Ping An's financial report for the past five years, why do I compare Ping An's financial report with China Construction? Because Ping An and China State Construction are both giants in a certain industry.

At this stage, Ping An's revenue is 1 trillion yuan, while the profit is about 100 billion yuan, and the market value is 800 billion yuan, but the value given by the market to Ping An is still underestimated. Compared with China Construction, we can see a market value of 200 billion, and there is still a lot of room for growth in the future.

Ping An's revenue is not as high as that of China State Construction, but its profit is higher than that of China State Construction, which is mainly due to the different business models of the two companies, while A-shares are very focused on business models. For example, Moutai, why did it defeat the position of the king of A-shares? It's because of its good business model. Therefore, removing the disadvantages of China's building business model, there is at least 300 billion market value for China's construction in the future, that is, adding 300 billion to the existing market value of China's construction, which is about 500 billion market value, so my judgment is that China's construction is worth at least 500 billion.

* The longer it goes, the higher it rises, because the stock price is also delayed, and in this delayed period of time, the value of the enterprise is constantly increasing, at this time, such companies will be seriously undervalued! China Construction is such a company, and its share price has been from 4 yuan to 6 yuan since 20173 yuan in the box, the performance has been improving, the stock price does not rise, like this kind of enterprise to seize must not let go, because this kind of stock price is often hidden opportunities.

And the MACD indicator has been blunted, and a very strong indicator has been blunted, and as long as it reverses, it is still very strong.