China Railway Construction (“CRCC”) recently caught my attention as it has tumbled approximately 44% from an intraday high of $9.99 on 5 Mar 2020 to close HKD5.64 on 21 Sep 2020.

Is this a bargain buy, or a value trap? Let’s take a look.

This post was originally posted here. The writer, Ernest Lim is a veteran community member and blogger on InvestingNote, with a username known as el15 and has 456  followers.

First up, a description of CRCC

Quoting from its 1HFY20 results, CRCC’s businesses cover a variety of construction, survey, design and consultation, manufacturing, real estate development, logistics and materials trading and other business with a refined industry chain covering scientific research, planning, survey, design, construction, supervision and management, maintenance, operation, investment and financing, etc.

Six reasons why CRCC catches my attention

1) 21 analysts cover CRCC with all buy calls; the average target price HKD12.00

Based on Figure 1 below, CRCC is widely