601668:SSEChina State Construction Engineering Corp. Ltd. Class A Analysis

China State Construction Engineering (601668) trades at a strikingly low PE of 4.8 versus an industry average of 29, and a PB of 0.44, suggesting deep value. The stock yields a robust 5.27% dividend with a modest 25% payout, supported by a cash balance of CNY 345 bn, though its debt‑to‑equity ratio exceeds 100%, flagging leverage risk. Technicals show a bearish price trend (20‑day SMA below 50‑day SMA and both under the 200‑day SMA) but a bullish MACD crossover and rising volume, with price hovering near the resistance at CNY 5.20 and above the support of CNY 4.94. Recent news of a CNY 5.6 bn Singapore property development partnership adds a potential growth catalyst, yet revenue is contracting at –6.6% YoY and margins remain thin (gross 9.7%, profit 2.1%).
Given the high dividend yield, undervalued multiples, and state‑backed business model, the stock offers attractive income and value upside, but investors must weigh the high leverage, negative top‑line momentum, and sector cyclicality before committing.