Investment Rating - The report maintains a "Buy" rating for China State Construction International (830 HK) with a target price raised from HKD 3.07 to HKD 3.12, indicating a potential upside of 54.7% based on a 9.0x FY24 target P/E ratio [2][3]. Core Insights - The company achieved a significant operational profit increase of 128.4% year-on-year in Q3 2024, with total revenue for the first three quarters of 2024 rising by 2.0% to HKD 6.54 billion, driven by a 26.4% increase in revenue from the Hong Kong and Macau regions [1][2]. - New contract signings in Q3 2024 increased by 4.6% year-on-year to HKD 2.50 billion, despite a 5.2% decline in new contracts for the first three quarters [2]. - The Hong Kong government's recent policy initiatives are expected to create long-term opportunities for the construction sector, including plans for 80,000 new private housing units and the commencement of the New Territories Science Park project [2]. Financial Summary - For FY24, total revenue is projected to reach HKD 9.82 billion, with a growth rate of 13.0% in FY25 and 12.7% in FY26 [4]. - Shareholder net profit is forecasted to grow to HKD 783 million in FY24, with subsequent increases to HKD 1.018 billion in FY25 and HKD 1.204 billion in FY26, reflecting growth rates of 34.9% and 18.3% respectively [4]. - The company’s operating profit margin improved by 2.6 percentage points to 12.9%, exceeding expectations [1][2].

Financial Performance - For the nine months ended September 30, 2024, the group's unaudited revenue was approximately HKD 6,540,508,000, representing an increase of 2.04% compared to HKD 6,409,310,000 for the same period in 2023[2] - The operating profit for the same period was approximately HKD 841,290,000, which is an increase of 27.85% from HKD 657,648,000 in 2023[2] Contracts and Outstanding Amounts - The total new contracts signed by the group amounted to approximately HKD 8,540,000,000 as of September 30, 2024[3] - The outstanding contract amount as of September 30, 2024, was approximately HKD 18,238,000,000[3]

Financial Performance - For the six months ending June 30, 2024, the company achieved a revenue of HKD 4.722 billion, maintaining stability compared to the previous year[6]. - Shareholders' profit reached HKD 551 million, representing a growth of 26.1% year-on-year[6]. - Earnings per share increased to HKD 0.2441, also reflecting a 26.1% year-on-year growth[6]. - The total revenue for the six months ended June 30, 2024, was HKD 4.722 billion, a slight increase from HKD 4.716 billion in the same period last year[14]. - The profit attributable to shareholders increased by 26.1% to HKD 551 million, compared to HKD 437 million for the same period last year[14]. - The gross profit for the first half of 2024 was HKD 760.6 million, compared to HKD 675.4 million in the same period of 2023, indicating a gross margin improvement[26]. - The net profit attributable to shareholders for the six months ended June 30, 2024, was HKD 550.5 million, an increase from HKD 436.7 million in the prior year[26]. - The group reported a total comprehensive income of HKD 476.5 million for the six months ended June 30, 2024, compared to HKD 428.7 million for the same period in 2023[27]. - Profit before tax for the six months ended June 30, 2024, was HKD 550,470,000, up from HKD 436,655,000 in 2023, reflecting a growth of 26%[46]. Dividend and Shareholder Returns - The company declared an interim dividend of HKD 0.07 per share, considering its profit situation and cash flow levels[6]. - The company declared an interim dividend of HKD 0.072177 per share for the six months ended June 30, 2024, compared to HKD 0.054133 per share in 2023, representing a 33.4% increase[45]. - The interim dividend declared is HKD 0.07 per share for the period ending June 30, 2024, compared to HKD 0.055 per share for the same period in 2023, reflecting a 27.3% increase[59]. Business Operations and Market Focus - The company continues to focus on the curtain wall business, emphasizing market opportunities in Hong Kong, Macau, and key overseas markets[7]. - In the first half of 2024, the company secured several large-scale curtain wall projects in Hong Kong, including the West Kowloon Cultural District and other major commercial projects[8]. - The Macau market remains strong, with ongoing projects like the Galaxy Phase IV, enhancing the company's competitive advantage with major clients[9]. - The company is expanding its presence in Singapore, aiming to establish a local team and capture new project opportunities[9]. - The company is actively exploring potential projects in Belt and Road countries, including Saudi Arabia, UAE, Thailand, and Cambodia[9]. - The company has adopted a differentiated competition strategy in mainland China, winning multiple large curtain wall projects, including those for OPPO and Sina[9]. Financial Position and Assets - As of June 30, 2024, the group's cash and bank balances amounted to HKD 685 million, a decrease from HKD 713 million as of December 31, 2023[20]. - Total bank borrowings increased to HKD 1.42 billion as of June 30, 2024, compared to HKD 1.19 billion as of December 31, 2023, reflecting a net gearing ratio of approximately 27.1%[20]. - The group's equity attributable to shareholders was HKD 2.81 billion as of June 30, 2024, up from HKD 2.40 billion as of December 31, 2023[22]. - The total assets of the group as of June 30, 2024, were HKD 11.25 billion, compared to HKD 10.64 billion as of December 31, 2023[28]. - The total equity increased to HKD 2,700,583,000 as of June 30, 2024, compared to HKD 2,295,866,000 at the end of 2023, marking a growth of approximately 17.6%[30]. - Non-current liabilities totaled HKD 1,420,966,000, up from HKD 1,027,662,000 at the end of 2023, indicating an increase of about 38.3%[30]. Cost Management and Expenses - Administrative, sales, and other operating expenses were reduced to HKD 132 million, down from HKD 160 million in the previous year due to strict cost control measures[17]. - Financial expenses increased slightly by 4% to HKD 35 million, despite a 30% rise in the Hong Kong Interbank Offered Rate during the same period[18]. - The operating revenue for the operational management segment decreased to HKD 508 million, down from HKD 554 million year-on-year, influenced by the depreciation of the RMB[16]. Employment and Workforce - The company employed a total of 4,171 staff as of June 30, 2024, down from 4,498 employees as of December 31, 2023[25]. Corporate Governance and Management Changes - The company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period[69]. - The audit committee, composed of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024[71]. - Changes in the board of directors include the resignation of Mr. Wu Mingqing as CEO effective June 1, 2024, and the appointment of Mr. Zhu Haiming as CEO effective June 1, 2024[72].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 3.07, indicating a potential upside of 47.4% from the current price of HKD 2.08 [4][9]. Core Insights - The company's 1H24 net profit increased by 26.1% year-on-year to HKD 550 million, aligning with expectations. Revenue rose by 0.1% to HKD 4.72 billion, with significant growth in the Hong Kong and Macau curtain wall segment, which saw a 24.0% increase to HKD 3.06 billion, accounting for 64.7% of total revenue [3][4]. - The company has successfully entered the Singapore market, winning a contract for the Central Mall project, which may allow it to replicate its success in Hong Kong and Macau [4]. - The company is actively pursuing BIPV (Building-Integrated Photovoltaics) projects, aligning with national policies aimed at promoting energy efficiency and carbon reduction in the construction sector [4]. Financial Summary - For FY24, the company forecasts revenue of HKD 10.06 billion, a 16.1% increase from FY23, and net profit of HKD 768 million, reflecting a 32.4% growth [7]. - The company’s earnings per share (EPS) is projected to rise from HKD 0.26 in FY23 to HKD 0.34 in FY24, with a corresponding price-to-earnings (P/E) ratio decreasing from 8.1 to 6.1 [7]. - The dividend per share is expected to increase from HKD 0.09 in FY23 to HKD 0.12 in FY24, resulting in a dividend yield of 5.6% [7]. Contract and Project Insights - The company’s new contract value for 1H24 decreased by 8.7% to HKD 6.04 billion, primarily due to a significant drop in contracts from the Hong Kong and Macau regions [3][4]. - The backlog of uncompleted contracts as of June 30, 2024, grew by 12.8% year-on-year to HKD 17.28 billion, ensuring revenue stability for the coming years [3][4].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5]. Core Insights - The company reported a stable revenue of HKD 47.22 billion for the first half of 2024, with a slight year-on-year increase of 0.1%, and a net profit of HKD 5.51 billion, reflecting a significant year-on-year growth of 26.1% [1]. - The net profit margin improved from 9.3% in the first half of 2023 to 11.7% in the first half of 2024, driven by the high-margin Hong Kong and Macau curtain wall business [1]. - The company secured new contracts totaling HKD 60.44 billion in the first half of 2024, a quarter-on-quarter increase of 23.9%, although it represents an 8.7% decline year-on-year due to the high base effect from large government hospital projects in the previous year [1]. - The company is actively advancing its BIPV (Building Integrated Photovoltaics) projects, with successful implementations in key projects, indicating a strategic focus on emerging business areas for future growth [1]. Financial Summary - The projected net profit for 2024, 2025, and 2026 is expected to be HKD 7.87 billion, HKD 10.36 billion, and HKD 13.16 billion respectively, with year-on-year growth rates of 35.7%, 31.6%, and 27.0% [1][3]. - The company's price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are projected to be 6.0, 4.5, and 3.6 respectively, indicating a favorable valuation [1][3].

Financial Performance - The company reported a revenue of HKD 4,722,048,000 for the six months ended June 30, 2024, compared to HKD 4,716,239,000 for the same period in 2023, reflecting a slight increase of 0.1%[2] - Gross profit for the period was HKD 760,634,000, up from HKD 675,387,000, representing a growth of 12.6% year-on-year[2] - The profit attributable to shareholders was HKD 545,668,000, an increase of 27% from HKD 430,287,000 in the previous year[2] - Basic and diluted earnings per share increased to HKD 24.41 from HKD 19.36, marking a rise of 26.5%[2] - The pre-tax profit for the six months ended June 30, 2024, was HKD 616,637,000, an increase from HKD 498,187,000 in 2023, reflecting a growth of approximately 23.8%[12] - Total other income and gains for the period was HKD 23,097,000, compared to HKD 17,836,000 in 2023, marking an increase of approximately 29.1%[14] - The company declared an interim dividend of HKD 0.072 per share, totaling approximately HKD 157,888,000, compared to HKD 124,055,000 in 2023, which is an increase of about 27.4%[18] Assets and Liabilities - Total non-current assets decreased to HKD 1,981,934,000 as of June 30, 2024, from HKD 2,077,743,000 at the end of 2023, a decline of 4.6%[5] - Current assets increased to HKD 9,271,121,000 from HKD 8,563,919,000, showing a growth of 8.3%[5] - The company's total liabilities decreased to HKD 4,121,549,000 from HKD 3,323,528,000, indicating a reduction of 1.5%[6] - The net current assets rose significantly to HKD 2,139,615,000 from HKD 1,245,785,000, an increase of 71.8%[5] - As of June 30, 2024, the company's bank loans amounted to HKD 9,471,000, a decrease from HKD 10,052,000 as of December 31, 2023[23] - The average interest rate on bank loans as of June 30, 2024, was 5.14%, slightly down from 5.19% on December 31, 2023[24] - Trade payables and other payables totaled HKD 3,904,118, an increase from HKD 3,585,358 as of December 31, 2023[25] Revenue Segmentation - The revenue from the curtain wall and contracting engineering segment was HKD 4,214,456,000, compared to HKD 4,162,421,000 in 2023, representing a growth of approximately 1.3%[12] - The operating management segment generated revenue of HKD 507,592,000, down from HKD 553,818,000 in 2023, indicating a decline of about 8.3%[12] - The revenue recognized over time was HKD 4,707,148,000, a marginal increase from HKD 4,695,739,000 in 2023, while revenue recognized at a point in time decreased to HKD 14,900,000 from HKD 20,500,000[13] - The revenue from the curtain wall and contracting business rose to HKD 4.214 billion, a 1.2% increase from HKD 4.162 billion year-on-year[34] Market Position and Strategy - The company continues to focus on its core business segments, which include curtain wall and contracting engineering, as well as operational management services[11] - The company maintained its market leadership in the Hong Kong curtain wall business, securing major projects such as the West Kowloon Cultural District and other large-scale developments[29] - The company is expanding its presence in the Singapore market, aiming to establish it as a new growth point for curtain wall business[30] - The company is focusing on differentiated competition strategies in the mainland market, winning several large-scale projects including the OPPO Dongguan project and the Shanghai Sina headquarters project[30] - The company emphasizes technological innovation, enhancing its core competitiveness with advanced glass curtain wall technology and automated production lines[31] - The company is actively participating in bidding for small to medium-sized construction projects in Hong Kong, enhancing internal collaboration[31] - The company is leveraging its brand advantage and technological capabilities to capture market opportunities in the Greater Bay Area and overseas markets[27] Future Outlook - The cumulative new contract value signed was HKD 6.044 billion for the six months ending June 30, 2024[38] - The total contract value on hand was approximately HKD 31.464 billion, with unfinished contracts amounting to about HKD 17.275 billion[38] - The company plans to expand into the photovoltaic building integrated (BIPV) market, focusing on high-energy cities to lead green building development[46] - Future strategies include enhancing brand promotion and market expansion while maintaining high-quality service in the curtain wall business[45] Governance and Compliance - The company has not reported any significant impacts on its performance or financial position due to the adoption of revised Hong Kong Financial Reporting Standards[10] - The company has complied with all applicable code provisions of the Corporate Governance Code during the six-month period ending June 30, 2024[50] - An independent audit committee reviewed the unaudited interim results for the six months ending June 30, 2024[51] - No purchases, sales, or redemptions of the company's listed securities were made by the company or its subsidiaries during the six months ending June 30, 2024[49] Cost Management - Administrative, sales, and other operating expenses decreased to HKD 132 million from HKD 160 million year-on-year due to strict cost control measures[36] - The net debt ratio as of June 30, 2024, was approximately 27.1%, up from 20.7% at the end of 2023[39]

Financial Performance - Revenue for 2023 reached HK$8,665,765, representing a growth of 13% compared to HK$7,668,983 in 2022[9] - Profit attributable to owners of the Company increased to HK$580,420, up 37.6% from HK$421,852 in 2022[9] - Return on equity attributable to owners of the Company improved to 24.2%, compared to 20.2% in 2022[9] - Basic earnings per share rose to 25.73 HK cents, an increase from 19.11 HK cents in 2022[9] - The Company’s total assets grew to HK$10,641,662, up from HK$10,299,862 in 2022[9] - In 2023, the revenue of the principal business amounted to HK$8,666 million, representing an increase of 13.0% compared to the previous year[104] - The profit attributable to shareholders was HK$580 million, reflecting a year-on-year increase of 37.6%[104] - Earnings per share reached HK25.73 cents, marking a 34.6% increase year-on-year[104] - The total dividends distributed for the year were HK8.7 cents per share, which is a year-on-year increase of 33.8%[104] - The Group achieved a revenue of HKD 8.666 billion for the year, representing a 13.0% increase compared to the previous year[106] - Shareholders' profit reached HKD 580 million, a year-on-year increase of 37.6%[106] - Earnings per share rose to HKD 0.2573, reflecting a growth of 34.6% year-on-year[106] - The Group proposed a final dividend of HKD 0.032 per share, with total dividends for the year amounting to HKD 0.087, an increase of 33.8% year-on-year[106] Business Operations and Projects - The Construction Engineering Business accounted for 89% of total revenue in 2023[12][13] - China Overseas Supervision won the bid for the integrated supervision project of Tianan Yungu Industrial Park Phase III and the supervision service project of the land parcel Lot B303-0063 in Shenzhen International Exchange Centre[36] - Far East Facade Hong Kong won the bid for the facade projects of the Prince of Wales Hospital and Grantham Hospital, key projects under Hong Kong's "First Ten-Year Hospital Development Plan" aimed at enhancing public medical service capabilities[38] - Netfortune (Shanghai) Aluminium Works Company won the bid for Phase II of the new China International Exhibition Center project in Beijing, marking a significant entry into the Beijing market[40] - The steel structure project of Dongguan International Trade Centre won the 15th "China Steel Structure Gold Award," showcasing the company's excellence in steel structure engineering[42] - Far East Facade Hong Kong successfully topped out the facade of the Murray Road project in Central, Hong Kong, establishing new technical standards in double-curved glass facade technology[50] - The Group achieved an accumulated new contract value of HK$11,501 million for the year, reaching 95.8% of the 2023 target[141] - As of 31 December 2023, the on-hand contract value amounted to approximately HK$29,856 million, with a backlog of approximately HK$16,239 million[148] - The facade contracting business in Hong Kong and Macau continued to perform strongly, winning several large projects including the Prince of Wales Hospital and the Hong Kong-Shenzhen Innovation and Technology Park[108][110] - The Group won bids for multiple large facade projects in Mainland China, including the OPPO International Headquarters and the International Sports and Culture Exchange Centre in Shenzhen[109][110] Research and Development - Breakthroughs in R&D of BIPV products were achieved with the unveiling of Light A photovoltaic facade product[28] - The new photovoltaic building material BIPV "Light S" series was showcased at the Tektónica International Building and Construction Fair, highlighting the company's commitment to green and low-carbon transformation in the construction industry[31] - The BIPV business made progress with the development of new photovoltaic facade products and the completion of the first production line[112][117] Awards and Recognition - The Company was awarded the "Caring Company" Label for ten consecutive years, reflecting its commitment to social responsibility[17] - The Company was recognized with the "Quality Contractor" Award for outstanding quality management in the construction industry[21] - The company was recognized with multiple ESG awards, including the "BDO Environmental, Social, and Governance (ESG) Award," reflecting its strong dedication to ESG principles[56] - Far East Facade Hong Kong received the "Good MPF Employer Award" for its commitment to providing better retirement protection for employees and utilizing electronic methods for MPF contributions[63] - The Yunzhu Hotel Guangzhou Project, involving Netfortune (Shanghai) Aluminium Works Company Limited, was awarded the National Quality Engineering Award for 2022-2023[82] - The Hanjing Financial Centre project, supervised by China Overseas Supervision, was recognized as a premium grade A office building and awarded the National Quality Works Projects Award for 2022-2023[82] Financial Management and Resources - Finance costs increased to HK$82 million due to a significant rise in interbank interest rates, up from HK$51 million in 2022[140] - Administrative, selling, and other operating expenses slightly decreased to HK$288 million from HK$291 million in 2022[139] - As of December 31, 2023, the Group's cash and bank balances were HK$713 million, down from HK$975 million as of December 31, 2022[151] - Total borrowings decreased to HK$1,188 million as of December 31, 2023, from HK$1,326 million in the previous year[151] - The net gearing ratio increased to approximately 20.7% as of December 31, 2023, compared to 17.6% as of December 31, 2022[151] - The Group had unutilized banking facilities of approximately HK$3,432 million, indicating sufficient financial resources for business development[151] - The total bank borrowings as of December 31, 2023, were HK$1,188 million, with HK$789.5 million due on demand or within one year[154] - The Group does not have a formal foreign currency hedging policy and did not engage in hedging activities during the year ended December 31, 2023[160] Leadership and Management - Mr. Wu Mingqing has over 38 years of experience in financial management, construction engineering, infrastructure investment, and project management[168] - Mr. Wang Hai has over 30 years of experience in international corporation management in the building and infrastructure investment industry across North America, Hong Kong, and Mainland China[170] - Mr. Wong Man Cheung has over 27 years of experience in accounting, audit, financial management, corporate financing, and business development[172] - Mr. Huang Jiang has over 27 years of experience in contract and project management[174] - Mr. Zhou Jinsong is a Certified Public Accountant in the People's Republic of China and has extensive experience in accounting, audit, and business advisory[176] - Ms. Chan Man Ki has over 29 years of experience providing legal advice and services as a solicitor in Hong Kong[179] - The company has a strong leadership team with diverse expertise in finance, construction, legal, and project management[170][172][174][176][179] - The management team includes professionals with extensive experience in their respective fields, enhancing the company's operational capabilities[186] - The company is focused on expanding its expertise in project management and engineering to improve service delivery[194] Strategic Focus and Future Plans - The company aims to improve cost-efficiency through refined management and leverage innovative technologies for business development[104] - The Group plans to accelerate its presence in the Singapore market and explore opportunities in the Middle East[121] - The Group aims to enhance its operational models and brand promotion to sustain profitability in the competitive facade market[122] - The Group is focusing on the inspection, maintenance, and renovation of aging facades to meet increasing safety standards[123] - The company is committed to developing new technologies and products to stay competitive in the market[200] - The company is positioned to leverage Mr. Lyu's expertise for future business opportunities and partnerships[200]

股 h c r a 票 e s e 研 R y 究 Etiu q [ FT la ab sle h_T Nitl oe] t e: CSC Development (00830 HK) 中文版 Gary Wong 黄家玮 (852) 2509 2616 快讯： 中国建筑兴业 (00830 HK) Chinese version gary.wong@gtjas.com.hk 23 April 2024 2[T0ab2le4_年Sum第ma一ry]季度经营利润同比增30.8%至4.32亿港元，维持 “ 买 入” e 快 to N 讯 h  重申“买入”评级，目标价维持在3.10港元。我们维持中国建筑兴业（“公司”）2024/ 2025/ 2026年每股盈利 s a lF 预测分别为0.338港元/ 0.445港元/ 0.541港元。我们维持目标为3.10港元，相当于7.7倍/ 6.0倍/ 4.8倍2024/ 2025/ 2026年EV/EBITDA。  2024年第一季度新签合同同比增4.9%至36.97亿港元。1）2024年第一季度收入为20.31亿港元（+17.7%）， 经营利润为4.32亿港元（+30. ...

Investment Rating - The report maintains a "Buy" rating for the company, predicting a price increase of over 15% in the next 6-12 months [10]. Core Insights - The company reported a revenue of HKD 2.031 billion for Q1 2024, representing a year-on-year increase of 17.8%, and an operating profit of HKD 432 million, up 30.8% year-on-year [4]. - The growth in revenue is primarily driven by the curtain wall business, with significant contributions from various segments including HK and Macau curtain walls, mainland curtain walls, and non-core businesses [4]. - The company is focusing on its established strategy, with new contract signings totaling HKD 3.697 billion in Q1 2024, a 4.9% increase year-on-year [4]. - The company is expanding its BIPV (Building Integrated Photovoltaics) applications, which are expected to become a new growth point during the 14th Five-Year Plan (2026-2030) [4]. Financial Performance Summary - Revenue for 2024 is projected to be HKD 10.375 billion, with a growth rate of 19.73% [8]. - The net profit attributable to shareholders is forecasted to be HKD 788 million in 2024, reflecting a growth rate of 35.68% [8]. - The company’s P/E ratios for 2024, 2025, and 2026 are estimated at 6.9, 5.3, and 4.1 respectively, indicating strong earnings potential [8].

Financial Performance - Unaudited revenue for the first quarter of 2024 was approximately HKD 2,030,915,000, compared to HKD 1,724,639,000 in the same period of 2023[2] - Unaudited operating profit for the first quarter of 2024 was approximately HKD 431,622,000, compared to HKD 329,979,000 in the same period of 2023[2] Contract Value - Cumulative new contract value for the first quarter of 2024 was approximately HKD 3.697 billion[3] - Uncompleted contract value as of March 31, 2024, was approximately HKD 17.618 billion[3] Corporate Structure - The company is an indirect subsidiary of China State Construction International Holdings Limited, which beneficially owns 70.78% of the company's issued share capital[1] Financial Reporting and Caution - The quarterly update is based on internal management records and has not been audited or reviewed by external auditors[4] - The company cautions that the unaudited figures should not be considered as an indication or guarantee of financial performance for the first quarter of 2024[5]