XCMG Construction Machinery Co.

000425.SZ

Industrial - Machinery · Industrials

Price

¥8.02

+0.08 (+1.01%)

Market Cap

¥93.92B

Exchange

Shenzhen Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 25, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Mixed

Growth

Good

Cash Flow

Strong

Stability

Good

Valuation

Strong

Dividends

Strong

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Share count rising — dilution

+47.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 7.83B (2021) → 11.53B (2025)

Winston Score History

The full picture

XCMG Construction Machinery is one of China's largest makers of heavy construction equipment. It builds cranes, excavators, road rollers, concrete machinery, and other tools used on building sites, mines, and infrastructure projects. The company is a top-ranked global construction machinery brand and a key supplier for large-scale projects in China and abroad.

XCMG earns revenue by selling and leasing heavy equipment, along with providing spare parts and after-sales service. It is headquartered in Xuzhou, Jiangsu Province, and exports to over 190 countries, making it one of the most internationally active Chinese machinery firms. Its scale, broad product lineup, and strong domestic distribution network give it a competitive edge. Key growth drivers include China's ongoing infrastructure spending and expanding overseas sales, though the business is cyclical and sensitive to slowdowns in construction activity both at home and globally.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+11.1% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+5.9% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

¥3.3B/ year

↓ Declining (-10% vs prior year)

3.3% of revenue

In line with sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

35.7%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

¥41.8B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

XCMG Construction Machinery Co. is a rare growth stock that's already generating positive cash flow while growing at 11%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

22.1%

Thin — 22.1% gross margin

Profit after running costs

Operating Margin

7.7%

Modest — 7.7% operating margin

Return on the money invested

ROCE

7.6%

Weak — 7.6% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+8.8%

Steady sales growth (+8.8% YoY)

Profit growth

EPS YoY

+4.4%

Modest earnings growth (+4.4% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

237%

Turns 237% of profit into real cash

Spare cash per sale

FCF Margin

11.1%

Modest free cash flow (11.1%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.61

Moderate — manageable debt (0.61)

Covers its interest

Interest Cover

6.86x

Adequate interest coverage (6.9x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

14.1x

Attractive valuation — P/E 14.1

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+3.0

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend

Dividend Yield

2.49%

Moderate income — 2.49% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+57.8%

Dividend growing fast (57.8% YoY)

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