China Communications Construction 1800

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CCCG to buy US$775mil stake in Greentown China

HONG KONG: Property developer Greentown China Holdings Ltd said state-owned China Communications Construction Group Ltd (CCCG) is buying a 24.29% stake in it for about US$775mil, days after a planned stake sale to another firm failed.

CCCG, the controlling shareholder of China Communications Construction Co Ltd, has agreed to buy a total 524.85 million shares from three Greentown shareholders, including Shou Bainian, Song Weiping and Xia Yibo, at HK$11.46 each, Greentown said in a filing to the Hong Kong bourse yesterday.

The price represented an 80.76% premium over Greentown shares’ last close.

Greentown shares fell to a 30-month low on Friday after a stake sale to peer Sunac China Holdings was terminated.

Trading in Greentown shares, which was suspended before markets opened on Monday, will resume on Wednesday.

The shareholding of Wharf (Holdings) Ltd in Greentown will remain unchanged at 24.29% on completion of the deal with CCCG.

Source: Reuters

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<Research Report>CHINA COMM CONS target lowered to $10, reiterated Overweight - HSBC
Feb 3, 2015


In a research report, HSBC cut CHINA COMM CONS (01800.HK)'s EPS forecast for 2016 by 5%.

However, the bank deemed that after the re-rating in the fourth quarter of last year, the group's share price will see a consolidation in the short term.

Target price was reduced from $10.3 to $10, with the Overweight rating reiterated.

Source: AAStocks Financial News

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Apr 29, 2015

<Research Report>CHINA COMM CONS downgraded to Underweight with target price $11.1 - Nomura

Nomura, in its report, mentioned that the rating of CHINA COMM CONS (01800.HK) was downgraded to Underweight from Neutral due to its valuation while the target price was maintained at $11.1.

The share has surged by 57% since January while the 12-month forward P/E rises to 11x, higher than the historical level of 7x.

Nomura mentioned that the "One Belt, One Road" strategy is not yet bearing fruit.

CHINA COMM CONS' new contracts in 1Q dropped 11% on a yearly basis, tracking behind the broker's full-year estimate of +14%. That was believed to be a negative surprise for the market.

Source: AAStocks Financial News

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Apr 29, 2015

<Research Report>Citi maintains CHINA COMM CONS(01800.HK) at Buy with target lifted to $17.5

Citigroup, in a report, reiterated a Buy rating for CHINA COMM CONS(01800.HK) and the target price was revised up from $14 to $17.5, representing 13x FY16 P/E.

The research house stated that the company's 1Q profit gained 8%, while operating revenue rose 20%.

It is expected that sales growth will further increase despite a 11% year-on-year decline on newly signed contracts.

Hence, the broker lifted CHINA COMM CONS's 2016-17 profit forecast by 2%-4%, while trimming FY15 projected profit by 3%-4%.

Of all the railway stocks, the preference orders will be CHINA RAIL CONS (01186.HK), CHINA COMM CONS, CHINA RAILWAY (00390.HK) and CMEC (01829.HK).

Source: AAstocks.com

[winston]

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29 Apr, 2015

<Research Report>C Suisse maintains CHINA COMM CONS(01800.HK) at Outperform with target lifted to $18.8

Credit Suisse, in a report, stated that CHINA COMM CONS(01800.HK) posted net profit of RMB1.96 billion in the first quarter, up 8% from a year earlier.

The net profit growth was lower than expected due to higher financing cost and income tax. However, sales growth beat estimates with 20% year-on-year increase. Meanwhile, profit margin expanded strongly, despite weak cash flows.

The research house expected continuous recovery in earnings in the coming quarters when new orders materialize, together with improvement in product mix. They remain bullish on the company's growth outlook.

The target price was raised from $13.7 to $18.8, representing 15.1x FY15 P/E, same as historical average.

The stock was maintained at Outperform, with positive catalyst of expected spin-off of dredging business in 2H15.

Source: AAStocks Financial News

[winston]

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10 Apr, 2015

<Research Report>Nomura: CHINA RAIL CONS(01186.HK) target lifted to $16.61; most preferred among peers

Nomura said in a report that it has raised CHINA RAIL CONS(01186.HK)'s 2015/16 EPS forecasts by 3%/14% to reflect the rise in operating profit and the drop in financial cost.

Besides, the cash flow management continued to improve.

Target price was lifted from $11.75 to $16.61.

The broker considered the stock's risk-reward the most attractive among its peers, with 10x 2015 P/E as compared to CHINA RAILWAY (00390.HK)'s 14x and CHINA COMM CONS (01800.HK)'s 12x. The Buy rating was unchanged for CHINA RAIL CONS.

Source: AAStocks Financial News

[winston]

not vested

China Communications Construction (1800 HK)

The central government of China is promoting its “One Belt, One Road” which might boost the overseas orders of Chinese railway and infrastructure constructors.

China Communications Construction (CCC) is believed to benefit the most from the “One Belt One Road” as it is principally engaged in the infrastructure construction including railway, highways, bridges, with greatest exposure to overseas projects.

Moreover, the railway investment in China might be increased given the strengthening of stabilization policies which could bode well for CCC.

Source: UOBKH

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China Comm soars

Shares of China Communications Construction Co (1800) jumped on news that its controling shareholder China Communications Construction Group is spending some HK$1.15 billion to raise its stakes in Greentown China Holdings (3900), a move that heralds massive restructuring at CCCG.

The stock jumped 6 percent to HK$14, while Greentown rose 6.8 percent to HK$10.98 yesterday.

CCCG's stake in Greentown will now climb to 28.912 percent, overtaking The Wharf's 24.32 percent, thereby making it the largest shareholder.

China Securities Journal reported that after the purchase to be completed by mid-June CCCG will establish a property development firm combining all its real estate assets with those of Greentown.

Meanwhile, the group is working to take CCCC Dredging to the local market to boost the group's overall valuation.


Source: The Standard HK

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vested

CHINA COMM CONS Subsidiary Rewards GBP300M UK Tidal Power Project

CHINA COMM CONS (01800.HK) subsidiary won the bid for the tidal power project in Swansea Bay in the U.K., with a contract amount of 300 million pounds (equivalent to RMB2.847 billion), Xinhuanet.com reported.

Source: AAStocks Financial News

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vested

ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 June 2015

FINANCIAL HIGHLIGHTS

Revenue of the Group for the six months ended 30 June 2015 amounted to RMB175,775 million, representing an increase of RMB17,214 million, or 10.9%, from RMB158,561 million for the corresponding period of 2014.

Gross profit for the six months ended 30 June 2015 amounted to RMB18,546 million, representing an increase of RMB1,910 million, or 11.5%, from RMB16,636 million for the corresponding period of 2014.

Operating profit for the six months ended 30 June 2015 amounted to RMB11,509 million, representing an increase of RMB645 million, or 5.9%, from RMB10,864 million for the corresponding period of 2014.

Profit attributable to owners of the Company for the six months ended 30 June 2015 amounted to RMB6,812 million, representing an increase of RMB792 million, or 13.2%, from RMB6,020 million for the corresponding period of 2014.

Basic earnings per share for the six months ended 30 June 2015 amounted to RMB0.41, as compared with RMB0.37 for the corresponding period of 2014.

The value of new contracts for the six months ended 30 June 2015 amounted to RMB263,758 million, representing a decrease of 5.7% from RMB279,631 million for the corresponding period of 2014.

As at 30 June 2015, the backlog for the Group amounted to RMB787,715 million, as compared with RMB818,280 million as at 31 December 2014.