China Communications Construction 1800

[winston]

DJ MARKET TALK: CCC Shares Attractive For L/T Investors -Nomura

0937 [Dow Jones] STOCK CALL: Nomura keeps China Communications Construction (1800.HK) at Buy with target HK$12.50. Notes last week, CCC was mired in controversy concerning alleged improper bidding collusion. (CCC has denied allegation.)

"While we understand investors' concerns and accept that some may have internal policies against investing in companies involved in similar allegations, we consider the shares, trading at 12X 2009E EPS, attractive for long-term investors. CCC will likely deliver in-line to better-than-expected 2H08 results." Stock closed +2.2% at HK$7.60 Monday.

[winston]

From DB Nov 26:-

* China Comm. Construction
- More upside due to stimulus package; Maintain Buy - (Buy, 1800.HK, HK$6.65): Forecasts revised up due to stimulus package Following our earnings and TP revision of CRC (1186.HK, HK$10.48, Buy) and CRG (0390.HK, HK$4.54, Hold), we now revise up CCC's earnings and TP as well.

As the dominant ports construction company and one of the largest roads/bridge builders in China , CCC will benefit from MoC's Rmb1trn/ year spending in 2009-2013, even after factoring some capacity constraints. Our FY09E and FY10E EPS are revised up 8% and 9% respectively, and our TP is revised to HK$7.30 (from HK$6.80). We maintain Buy on the stock.

[winston]

DJ MARKET TALK: CLSA Tips China Comm Construction Earnings Risks

1421 [Dow Jones] STOCK CALL: CLSA keeps China Communications Construction (1800.HK) at Sell with target HK$7.80. "CCC's share price has corrected sharply year-to-date. But we believe current valuation at 12.7X 2009 P/E and 2.2X 2009 P/B is not attractive enough.

We believe earnings forecast risks, especially for 2010, are to the downside." Notes house's earnings forecast for 2010 is below consensus due to expectation for 10%-15% decline in new orders for port construction and overseas business in 2009. Stock +0.4% at HK$7.75; HSI down 2.8%.

[winston]

China Communications Con plans infrastructure fund

HONG KONG, Feb 12 (Reuters) - China Communications Construction Co (1800.HK), a top builder of highways and ports in China, said on Thursday it planned to team with banks to set up a fund to invest in infrastructure facilities on the mainland.

"It is a good way of thinking with the company identifying projects domestically and banks securing financing overseas," Fu Junyuan, executive director and chief financial officer, told reporters on the sidelines of an investor conference.

"We can sell it, or package and inject it into a listed company on completion of the project," Fu said.

Chinese enterprises face the challenge of securing and maintaining steady financing in the current economic environment, and it is even harder for smaller firms to secure financing from banks without being guaranteed by big names, Fu said.

Fu said the company had started talking to some mainland banks and Hong Kong commercial banks, but did not give a timetable for setting up the investment fund.

Fu, who declined to comment on the size of the fund, said the start-up capital of a fund for such a big investment should be at least 2-5 billion yuan ($293-$732 million).

He saw both risks and opportunities in the current economic climate, and was confident the company could achieve its target of raising its share in the domestic railway-construction market to about 10 percent in 2009-2010 from 7 percent last year.

"We have many orders on hand and I think there is no problem in meeting this target," Fu said, without elaborating.

Last September, the company said in its interim results that the value of new contracts amounted to 128.97 billion yuan in the first half of 2008, up 27.2 percent from the same period a year earlier. The backlog for the company was 268.1 billion yuan, up 12.5 percent compared with the end of 2007.

Shares of the company ended at HK$8.29 on Thursday. They have fallen 13.3 percent so far this year against a decline of about 8 percent in the broader benchmark Hang Seng Index

[winston]

UPDATE 1-China Communications Con says H2 net up 18 pct

* Set to benefit from Beijing's stimulus package
* Margins seen improving in 2009 - analysts
By Alison Leung

HONG KONG, April 14 (Reuters) - China Communications Construction (1800.HK), the country's top builder of highways and ports, posted a lower-than-expected 18 percent rise in second-half earnings despite improved margins on lower raw-material prices.

But the company, which competes with China Railway Construction (1186.HK) and China Railway Group (0390.HK), is expected to benefit from a central government stimulus package that significantly boosts spending on infrastructure construction.

China's investment in fixed assets for transportation and communication this year was likely to reach one 1 trillion yuan ($146.4 billion) and planned investment for railway construction was 600 billion yuan, the company said in a statement.

"As the leading communication construction enterprise in China, the group is well positioned to benefit from the economic stimulus plan," it said.

China Communications said the value of new contracts totalled 283 billion yuan in 2008, up 20.8 percent, with a backlog of 334.3 billion yuan at the end of 2008, up 40.3 percent.

But the company's port construction and port machinery manufacturing were likely to be affected by the tough business environment, analysts said.

China Communications, which competes with China Railway Construction (1186.HK) and China Railway Group (0390.HK), reported a net profit of 3.88 billion yuan ($568 million) for the six months ended December against 3.29 billion yuan in the same period a year earlier.

The result, calculated from previously reported half-year earnings, lagged an average forecast of 4.0 billion yuan by 16 analysts polled by Reuters Estimates.

Full-year net profit edged up 0.7 percent to 6.08 billion yuan in 2008 with earnings per share unchanged at 0.41 yuan, the company said in a statement.

The operating profit margin recovered in the second half of 2008, lifting the full-year margin to 6.6 percent, from 5.5 percent in the first half of 2008 and against 7.0 percent in 2007.

"The company is expected to see higher margins in 2009," said Geoffrey Cheng, an analyst at Daiwa Institute of Research.

He said the company's 2008 net profit was in line with his estimation of 6.077 billion yuan.

The stock underperformed the broader market and has lost 0.8 percent since the beginning of 2009 despite an 8.3 percent rise in the blue-chip Hang Seng Index .HSI and an advance by the index for major Chinese companies listed in Hong Kong .HSCE, or H-share index, of 17 percent so far this year.

But China Communications shares fell 28 percent in the second half of 2008, better than a 35 percent drop on of the Hang Seng Index and a 34 percent fall by the H-share index.

http://uk.reuters.com/article/tnBasicIn ... dChannel=0

[winston]

DJ MARKET TALK: GS Reviews China Comm Cons Rating; $2.1B Job Eyed

1158 [Dow Jones] STOCK CALL: Goldman Sachs reviewing earnings estimates, target and rating of China Communications Construction (1800.HK) following news company's 46.1%-held unit Zhenhua Port Machinery (ZPMC) has won overseas contract worth US$2.126 billion with Spanish firm Arborec Desarrollos SA (Hong Kong).

House says news positive, as this is "a significant contract," accounting for 55% of ZPMC's 2008 revenue, 3.75X ZPMC's 2008 heavy marine equipment revenue. "In our view, this represents a successful penetration into the marine heavy machinery segment to help offset the decline in the container crane business." Stock +0.6% at HK$9.77.

[winston]

Not vested.

DJ MARKET TALK:CCC,CSC,Hans Energy Sharply Down On Dubai Concerns

1224 [Dow Jones] Companies with exposure to or relationships with Dubai sharply lower, with China Communications Construction (1800.HK) down 5.2% at HK$7.56, China State Construction (3311.HK) down 6.7% at HK$3.19 and Hans Energy (0554.HK) down 5.4% at HK$0.35.

CCC unit, Zhenhua Port Machinery, has port machinery contract valued at US$343 million in Dubai (signed December 2008), CSC has construction-related operations there, while Dubai World holds 9.91% stake in Hans Energy.

Jackson Wong at Tanrich tips more downside in these stocks likely ahead, as it's still early to say if Dubai crisis is going to be settled near-term. Tips CCC may test HK$7.20 near-term vs intraday low of HK$7.40.

Source: Dow Jones Newswire

[winston]

Not vested. If the "experts" cant even get their numbers "straight", what chance do you have ?

DJ MARKET TALK: RBS Cuts China Comm Construction Target By 22.9%

1139 [Dow Jones] STOCK CALL: RBS cuts China Communications Construction (1800.HK) target to HK$7.62 from HK$9.88 after lowering FY09-FY11 earnings forecasts by around 20% to reflect disappointing performance of heavy machinery and lower gross margin assumption.

But says outlook for dredging still seems healthy, tips company's financial situation to improve in FY10-FY11. Keeps at Hold. Stock down 0.1% at HK$7.15;

Source: Dow Jones Newswire

[winston]

not vested

CHINA COMM CONS (01800.HK) rated Buy, TP raised to $9.45 by BofAML
2013-01-22

Bank of America Merrill Lynch noted in a report that it slightly lifted the 2012/13 earnings forecast for CHINA COMM CONS (01800.HK) by 2%, and reiterated the Buy rating, with target price raised from $8.3 to $9.45.

CHINA COMM CONS underperformed sharply against CHINA RAILWAY (00390.HK) and CHINA RAIL CONS (01186.HK), and a better performance is expected.

The Bank gave Underperform rating to CHINA RAIL CONS, with target price $7.9, while giving Neutral to CHINA RAILWAY, with target price of $4.5.

The Bank added that most of the customers of CHINA COMM CONS are related to the provincial governments, posing threat to the stock price.

Source: AAStocks Financial News

[winston]

not vested

<Resumption Ann>CCCG buys stakes in GREENTOWN CHINA (03900.HK)

GREENTOWN CHINA (03900.HK) announced that Song Weiping (the chairman of the Board and an executive Director), Delta (a company wholly-owned by Song), Shou Bainian (the chief executive officer of the Company, the executive vice chairman of the Board and an executive Director), Profitwise (a company wholly-owned by Shou), Xia Yibo (the spouse of Song), Wisearn (a company wholly-owned by Xia) and China Communications Construction Group (Limited) (CCCG) entered into an agreement, pursuant to which each of Delta, Profitwise and Wisearn agreed to sell 246,052,076, 209,940,717 and 68,859,000 shares, respectively, to CCCG and/or its wholly-owned subsidiary(ies) at HK$11.46 per share in cash, representing a total consideration of HK$6,014,801,547.78.

The shares to be sold represent approximately 11.386%, 9.715% and 3.187%, respectively, or an aggregate of approximately 24.288% of the total issued share capital of the Company. ~

Source: AAStocks Financial News