Investment Rating - The report maintains a "Buy" rating for China State Construction International (03311 HK) with a target price of HKD 15.00 [1][2]. Core Insights - In Q1 2024, the operating profit increased by 15.1% year-on-year to HKD 3.91 billion, with new contracts signed rising by 69.6% to HKD 80.09 billion [1]. - The company forecasts earnings per share of HKD 2.028, HKD 2.266, and HKD 2.503 for 2024, 2025, and 2026 respectively, maintaining a target price that corresponds to EV/EBITDA multiples of 7.2x, 7.1x, and 6.9x for the same years [1]. - The total value of contracts on hand as of March 31, 2024, was HKD 394.95 billion, reflecting a year-on-year increase of 24.0% [1]. Summary by Sections Financial Performance - Q1 2024 revenue reached HKD 24.17 billion, marking an 11.7% year-on-year increase [1]. - The operating profit for the same period was HKD 3.91 billion, up 15.1% year-on-year [1]. Contractual Developments - New contracts signed in Q1 2024 totaled HKD 80.09 billion, a significant increase of 69.6% year-on-year [1]. - The company, in partnership with Veolia Group, won the New Territories West Landfill Extension project, valued at HKD 61.1 billion, which is the largest single contract in the company's history [2]. Future Outlook - The company aims to secure new contracts worth no less than HKD 210 billion in 2024, representing an 11.7% year-on-year growth target [1].

Financial Performance - The company's revenue for the year reached HKD 113,734,013, an increase of 11.5% compared to HKD 101,975,265 in the previous year[12]. - The profit attributable to shareholders was HKD 9,164,045, representing a growth of 15.1% from HKD 7,956,876 in the prior year[12]. - The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the year was HKD 16,027,295, up 11.6% from HKD 14,362,945 in the previous year[12]. - The company reported a net profit margin of 8.1%, a decrease from 7.8% in the previous year[12]. - The earnings per share (EPS) increased to HKD 1.82, compared to HKD 1.58 in the previous year, reflecting a growth of 15.2%[12]. - The company declared a final dividend of HKD 0.56 per share, up from HKD 0.48 per share in the previous year[12]. - The current ratio improved to 1.28, compared to 1.25 in the previous year, indicating better short-term financial health[12]. - The group's audited revenue for the year ended December 31, 2023, was HKD 113.734 billion, with an operating profit of HKD 14.986 billion[29]. - Shareholder profit increased by 15.2% to HKD 9.164 billion, with basic earnings per share at HKD 1.82 and net asset value per share at HKD 14.74[29]. - Investment income, other income, and net other gains/losses decreased by 59.0% to HKD 647 million, primarily due to reduced fair value gains from investment properties and no confirmed gains from the sale of investments during the year[46]. Contracts and Projects - The total uncompleted contracts amounted to HKD 350.05 billion, an increase from HKD 294.53 billion at the end of the previous year[12]. - The group undertook 121 new projects during the year, with a total contract value of approximately HKD 188.02 billion[28]. - New contracts signed in Hong Kong reached HKD 70.921 billion, a significant increase of 58.0% year-on-year[30]. - New contracts in Macau amounted to HKD 9.541 billion, maintaining the market leadership position[30]. - New contracts in mainland China totaled HKD 96.055 billion, reflecting a year-on-year growth of 4.5%[31]. - The total contract amount attributable to the company reached HKD 571.94 billion[57]. - As of December 31, 2023, the total contract amount for ongoing projects is HKD 571,944 million, with an uncompleted contract amount of HKD 350,051 million[60]. - The company has 338 ongoing projects, including 221 in mainland China, 78 in Hong Kong, and 39 in Macau[60]. - Major completed projects include the reconstruction of Kwong Wah Hospital and various residential developments in Hong Kong[38]. - The company is involved in significant civil engineering projects, such as the Tseung Kwan O to Lam Tin Tunnel and the construction of the West Kowloon Terminus for the Express Rail Link[38]. Technological Innovation and R&D - The company invested HKD 486 million in R&D, continuing to progress towards the goals set in the 14th Five-Year Plan[37]. - The company plans to continue focusing on technological innovation and digital transformation as key strategic directions for future growth[40]. - The company was awarded 211 patents during the year, reflecting its strong technological capabilities and innovation[37]. - The group launched new photovoltaic curtain wall products, Light A and Mega Light A, and completed the first production line for photovoltaic curtain walls[32]. - The group’s modular integrated construction technology was showcased at the 20th China International Housing Industry and Building Industrialization Products and Equipment Expo[20]. Awards and Recognition - The company received multiple awards for its projects, including 13 gold awards and 10 silver awards at the 2022 Construction Industry Safety Award Ceremony in Macau[13]. - The group was recognized as one of the top 40 companies in China for ESG influence by Fortune magazine due to its outstanding performance in the ESG field[18]. - The group was selected as a constituent of the Hang Seng Corporate Sustainability Benchmark Index for its exceptional performance in sustainable development[22]. - The group received 15 awards at the 29th Public Works Site Award Ceremony, becoming the company with the most awards in the industry for two consecutive sessions[24]. - The group was the only construction and engineering company included in the S&P Global Sustainable Development Yearbook 2023, receiving the title of "Best Progressing Company in the Industry"[21]. Corporate Governance and Management - Management emphasized the importance of investor relations, viewing it as a key area to enhance corporate governance and value creation, with significant support from the management team[91]. - The company has a strong commitment to corporate governance, adhering to the Hong Kong Stock Exchange's corporate governance code[108]. - The board of directors held six meetings during the year to review and approve the company's annual, interim, and quarterly performance[113]. - The chairman and CEO roles are clearly separated to ensure a balanced distribution of power and authority within the company[116]. - The company has implemented a sustainable development policy, including water resource management and climate change policies[113]. - The board consists of seven directors, with six male and one female, reflecting a gender diversity commitment[78]. Social Responsibility and Community Engagement - The group organized over 1,400 hours of volunteer service through the "Co-create Bright Teen" program, helping students from underprivileged backgrounds[86]. - The group completed home repairs for over 620 households under the "Thousand House Repairs" initiative, targeting low-income families[88]. - The group has established a volunteer service system that engaged over 4,700 volunteer instances, contributing more than 17,000 hours of service in 2023[87]. - The company actively engages in community support and social responsibility initiatives[78]. - The company has received the 2023 Hong Kong Volunteer Award for corporate volunteer hours[72]. Financial Instruments and Capital Management - The group issued bonds amounting to RMB 1.1 billion with a maturity of 3 years and a coupon rate of 2.88%, receiving AAA ratings and the highest G1 level green certification[22]. - The group actively utilized green financial instruments, securing a USD 100 million sustainable development-linked loan in Hong Kong[35]. - The group completed a public offering that raised approximately RMB 3.067 billion, which was used for debt repayment and general working capital[155]. - The group has issued corporate bonds of RMB 1 billion at a coupon rate of 2.88% for a term of 3 years on August 21, 2023[155]. - The group redeemed corporate bonds of RMB 2 billion at a coupon rate of 3.48% that were issued on July 30, 2020[156]. Risk Management - The company has a robust risk management and internal control system, effectively managing strategic, financial, operational, compliance, and sustainability risks[137]. - The risk management team, led by the CEO, continuously identifies and enhances the company's risk management practices, fostering a culture of comprehensive risk awareness[138]. - The audit department conducts independent evaluations of the risk management and internal control systems, ensuring their adequacy and effectiveness across all major operational units[138]. - The company has established a detailed project risk rating system to identify and assess major operational risks, ensuring that operational risks remain within controllable limits[147]. - The company faces various risks, including construction risks, infrastructure investment risks, overseas business risks, and compliance risks, which are managed through a structured internal control framework[147].

Revenue Performance - For the three months ended March 31, 2024, the group's unaudited revenue was approximately HKD 24,165,906,000, representing an increase from HKD 21,639,304,000 for the same period in 2023, which is a growth of about 11.6%[3] Operating Profit - The group's unaudited operating profit for the same period was approximately HKD 3,911,940,000, compared to HKD 3,398,564,000 in 2023, reflecting an increase of approximately 15.1%[3] Contractual Obligations - The total new contracts signed by the group for the three months ended March 31, 2024, amounted to approximately HKD 80.09 billion[4] - As of March 31, 2024, the group's uncompleted contract amount was approximately HKD 394.95 billion[4] Financial Data Disclaimer - The financial data provided is unaudited and should not be considered as an indication of the group's financial performance for the three months ended March 31, 2024[6]

hcraeseR 股 票 研 [Table_Title] Gary Wong 黄家玮 ytiuqE Company Report: China State Construction International (03311 HK) 究 (852) 2509 2616 公司报告： 中国建筑国际 (03311 HK) 中文版 Chinese version gary.wong@gtjas.com.hk 25 March 2024 科[Ta技ble带_Su动mm类ar业y] 务贡献将不断增加  我们重申“买入”评级，维持15.00港元的目标价。我们分别小幅下调中国建筑 [RTaabtlien_gR:a nk] Buy 国际（“公司”）2024/2025年每股盈利预测3.4%/ 3.1%至2.028港元/2.266港 公 Maintained tropeR 元，并首次给予2026年每股盈利预测为2.503港元。我们维持15.00港元的 司 目标价，相当于7.2倍/ 7.1倍/ 6.9倍的2024/ 2025/ 2026年EV/EBITDA。 评级： 买入 (维持) 报 ynapmoC  2023年股东净利润同比增 ...

%% research.95579.com %% 丨证券研究报告丨 港股研究丨公司点评丨中国建筑国际（ ） 3311.HK [Table_Title] 利润与现金流齐飞，港澳高景气兑现在即 报告要点 [中Ta国bl建e_筑Su国m际m发ar布y] 2023年年报，实现营业 1137.34亿港元，同增 11.5%；毛利率较2022年 13.7%升至14.4%；归母净利润91.64亿港元，同增15.2%。 ...

Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 113,734,013, representing an increase of 11.5% compared to HKD 101,975,265 in 2022[2] - The net profit attributable to shareholders increased by 15.2% to HKD 9,164,045, up from HKD 7,956,876 in the previous year[2] - Basic earnings per share rose to HKD 1.82, reflecting a 15.2% increase from HKD 1.58 in 2022[2] - The gross profit margin improved to 14.4%, up from 13.7% in the prior year, indicating a 0.7 percentage point increase[2] - The company reported a comprehensive income of HKD 6,994,340 for the year, compared to HKD 3,846,014 in 2022, indicating a substantial increase[4] - The profit for the year 2023 was HKD 9,164,045,000, an increase from HKD 7,956,876,000 in 2022, representing a growth of approximately 15.1%[22] - The company reported audited revenue of HKD 113.734 billion and operating profit of HKD 14.986 billion for the year ended December 31, 2023[34] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.56 per share, which, combined with the interim dividend, totals HKD 0.84 per share for the year[2] - The proposed final dividend for the fiscal year 2023 is HKD 0.285 per share, with total dividends for the year amounting to HKD 0.56, representing a year-on-year increase of 16.7%[34] - The company declared a final dividend of HKD 0.285 per share for 2023, up from HKD 0.24 per share in 2022, totaling approximately HKD 1,435,721,000 compared to HKD 1,209,028,000 in the previous year[21] Assets and Liabilities - The total assets as of December 31, 2023, amounted to HKD 147,923,280, compared to HKD 128,180,363 in 2022, showing a significant growth in total assets[5] - The total current liabilities increased to HKD 115,355,495 thousand in 2023 from HKD 102,824,642 thousand in 2022, representing a growth of approximately 12.5%[6] - The net current assets rose to HKD 32,567,785 thousand in 2023, up from HKD 25,355,721 thousand in 2022, indicating an increase of about 28.5%[6] - The total assets minus current liabilities reached HKD 133,919,190 thousand in 2023, compared to HKD 126,025,487 thousand in 2022, reflecting a growth of approximately 6.9%[6] - The equity attributable to shareholders increased to HKD 61,723,419 thousand in 2023 from HKD 57,790,161 thousand in 2022, marking an increase of around 6.7%[6] - The total liabilities increased to HKD 59,641,571 thousand in 2023 from HKD 58,229,033 thousand in 2022, indicating a growth of approximately 2.4%[6] Revenue Breakdown - Revenue from construction contracts decreased to HKD 40,215,032 in 2023, down 11.1% from HKD 45,219,645 in 2022[12] - Revenue from construction-related investment projects increased significantly to HKD 63,592,981, up 29.2% from HKD 49,243,336 in 2022[12] - The operating revenue from mainland China reached HKD 66,185,389, a substantial increase of 36.1% from HKD 48,631,132 in 2022[16] - Revenue from construction-related investment projects grew by 37.7% to HKD 64.495 billion, while profit increased by 16.4% to HKD 10.896 billion[46] Cash Flow and Liquidity - The cash and cash equivalents at year-end were HKD 28,462,889, up from HKD 23,881,499 in the previous year, reflecting improved liquidity[5] - Operating cash flow net inflow was HKD 0.501 billion, indicating positive cash management[43] - The company reported cash inflows from operating and investing activities of HKD 5.01 billion and HKD 11.74 billion, respectively, with net cash from financing activities at HKD 45.48 billion[49] Investments and Growth Initiatives - The company is expected to continue its strategic initiatives in market expansion and new product development, although specific figures were not disclosed in the conference call[11] - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency and revenue growth[12] - The company aims to enhance its market presence in Hong Kong and Macau while expanding in mainland China, focusing on high-quality projects and technological innovation[52] Innovation and Sustainability - The company issued the first green corporate bond for prefabricated construction with the highest certification level in the country, amounting to HKD 2.3 billion[40] - The company received 211 patents during the year, showcasing its commitment to innovation and technology development[42] - The company was recognized as a "Best Progress Company" in the S&P Global Sustainability Yearbook, reflecting its strong ESG performance[38] Market Position and Contracts - New contracts signed in Hong Kong reached HKD 70.921 billion, a significant increase of 58.0%[35] - New contracts in Macau amounted to HKD 9.541 billion, maintaining the company's leading position in the market[35] - In mainland China, new contracts signed totaled HKD 96.055 billion, reflecting a year-on-year growth of 4.5%[36] - The total new contract value signed in 2023 reached approximately HKD 188.018 billion, with a total contract value on hand of HKD 571.944 billion[50] Employee and Operational Expenses - The company reported a significant increase in employee benefits expenses, totaling HKD 6,725,944,000 in 2023, compared to HKD 6,406,615,000 in 2022[20] - The company reported a decrease in the provision for employee stock-based compensation expenses, which fell to HKD 6,570,000 in 2023 from HKD 34,127,000 in 2022[20]

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Financial Performance - For the nine months ended September 30, 2023, the group's unaudited revenue was approximately HKD 79.49 billion, compared to HKD 73.41 billion for the same period in 2022, representing an increase of about 8.5%[2] - The group's unaudited operating profit for the same period was approximately HKD 11.56 billion, up from HKD 9.83 billion in 2022, reflecting a growth of approximately 17.7%[2] Contractual Metrics - The total new contracts signed by the group for the nine months ended September 30, 2023, amounted to approximately HKD 140.4 billion[3] - As of September 30, 2023, the group's uncompleted contract value was approximately HKD 344.03 billion[3]

Financial Performance - For the first half of 2023, the company achieved a new contract value of HKD 96.82 billion, representing a year-on-year increase of 7.0%[11] - The unaudited revenue for the same period was HKD 55.11 billion, reflecting a year-on-year growth of 2.4%[11] - Operating profit increased by 17.6% to HKD 7.768 billion, while profit attributable to shareholders rose by 15.1% to HKD 4.849 billion[11] - The basic earnings per share were HKD 0.9625, and the net asset value per share was HKD 13.72[11] - The company declared an interim dividend of HKD 0.275 per share, with a payout ratio of approximately 28.6%[11] - The company's profit attributable to shareholders for the six months ended June 30, 2023, was HKD 4.849 billion, an increase of 15.1% compared to HKD 4.214 billion in the same period last year[23] - Revenue for the same period was HKD 55.111 billion, up 2.4% from HKD 53.811 billion year-on-year[23] - The basic earnings per share increased by 15.1% to HKD 0.9625 from HKD 0.8375 in the previous year[23] - The net profit for the period was HKD 5,134,854 thousand, compared to HKD 4,518,117 thousand in the previous year, representing a growth of around 13.6%[42] Market Segments - In mainland China, the new contract value reached HKD 48.59 billion, marking an 8.0% year-on-year increase[12] - In the Hong Kong market, the new contract amount reached HKD 37.36 billion in the first half of the year, representing a year-on-year growth of 36.4%[13] - The Macau market achieved a new contract amount of HKD 4.25 billion, maintaining a leading position in the market[13] - The mainland China segment recorded a revenue increase of 46.7% to HKD 32.040 billion, with segment profit rising by 15.1% to HKD 5.721 billion[25] - The group’s revenue from the mainland China segment was HKD 32,040,124, significantly up from HKD 21,838,860 in 2022[61] - The group’s revenue from Hong Kong and Macau decreased to HKD 19,937,594, down 30.7% from HKD 28,801,549 in the previous year[61] Cash Flow and Financial Position - The group reported a net cash inflow from operating activities of HKD 168 million in the first half of the year[17] - As of June 30, 2023, the group had cash on hand of HKD 28.999 billion, accounting for 12.2% of total assets, with unused bank credit facilities amounting to HKD 78.770 billion[17] - The net cash generated from operating activities for the six months ended June 30, 2023, was HKD 167,546,000, compared to HKD 101,679,000 for the same period in 2022, representing a 64.7% increase[49] - The net cash generated from investing activities was HKD 1,096,571,000, a decrease of 42.3% from HKD 1,898,732,000 in the previous year[50] - The net cash from financing activities increased significantly to HKD 5,210,614,000 in 2023, compared to HKD 2,690,609,000 in 2022, marking a 93.5% rise[50] - The total bank borrowings amounted to HKD 64,389 million, an increase from HKD 59,177 million as of December 31, 2022, representing an increase of approximately 3.7%[37] - The net borrowings of the group were HKD 466.73 billion, slightly down from HKD 470.36 billion as of December 31, 2022, resulting in a net debt-to-equity ratio of 67.5%, down from 69.4%[38] Technological Innovation and Development - The group obtained 102 patent authorizations, including 14 invention patents, and received multiple awards for technological advancements[20] - The group is actively promoting technological innovation, with the establishment of the first academician workstation in Hong Kong, aimed at supporting major projects[19] - The group has successfully applied its C-SMART digital solution to over 100 projects, with plans for an upgrade to the fourth generation[19] - The company plans to continue expanding its market presence and is focused on new product development and technological advancements[48] Risk Management and Sustainability - The group continues to strengthen risk management policies, maintaining a focus on sustainable and low-risk business expansion[40] - The company continues to focus on sustainable development, having been included in the FTSE4Good Index for seven consecutive years[15] Shareholder Information - The company announced an interim dividend of HKD 0.275 per share, up from HKD 0.24 per share in the previous year, representing a 14.6% increase[87] - Major shareholder China Overseas Group Limited holds 3,264,976,136 shares, representing 64.81% of the total issued shares[98] - GIC Private Limited, an investment manager, holds 302,824,733 shares, accounting for 6.01% of the total issued shares[99] Corporate Governance - The company has complied with all provisions of the Corporate Governance Code as of June 30, 2023[102] - The Audit Committee reviewed the unaudited interim results for the six months ended June 30, 2023[104]

Financial Performance - The company reported a revenue of HKD 55,110,712, representing a 2.4% increase from HKD 53,810,559 in the previous year[2]. - Profit attributable to shareholders increased by 15.1% to HKD 4,848,622, compared to HKD 4,213,994 in the same period last year[2]. - Basic earnings per share rose to HKD 0.9625, a 15.1% increase from HKD 0.8365[2]. - Total comprehensive income for the period was HKD 2,628,262, compared to HKD 1,093,156 in the previous year[4]. - The company reported a pre-tax profit of HKD 6,362,411, up from HKD 5,565,397 year-on-year[3]. - Total revenue for the first half of 2023 reached HKD 56,881,609,000, a slight increase from HKD 55,824,851,000 in 2022, representing a growth of 1.9%[14]. - Gross profit for the first half of 2023 was HKD 8,113,630,000, compared to HKD 6,695,941,000 in the same period of 2022, marking a significant increase of 21.1%[14]. - The company's pre-tax profit for the first half of 2023 was HKD 6,362,411,000, up from HKD 5,565,397,000 in 2022, reflecting a growth of 14.3%[14]. - The company's net profit attributable to shareholders was HKD 4.849 billion, an increase of 15.1% compared to HKD 4.214 billion in the same period last year[41]. - The total revenue recorded was HKD 55.111 billion, reflecting a 2.4% increase from HKD 53.811 billion in the previous year[41]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.275 per share[2]. - The company declared an interim dividend of HKD 0.275 per share for 2023, up from HKD 0.24 per share in 2022, representing a 14.6% increase[18]. - The board declared an interim dividend of HKD 0.275 per share, with a payout ratio of approximately 28.6%[41]. Assets and Liabilities - The company's total assets amounted to HKD 137,257,486, an increase from HKD 128,180,363 at the end of the previous year[5]. - Cash and cash equivalents increased to HKD 28,998,528 from HKD 23,881,499, indicating improved liquidity[5]. - The net current assets as of June 30, 2023, were HKD 28,219,873,000, compared to HKD 25,355,721,000 as of December 31, 2022, indicating a growth of 7.3%[6]. - Total assets minus current liabilities increased to HKD 128,245,013,000 from HKD 126,025,487,000, reflecting a growth of 1.8%[6]. - Non-current liabilities, including bank loans, rose to HKD 59,119,901,000 from HKD 58,229,033,000, an increase of 1.5%[6]. - Trade and other receivables as of June 30, 2023, amounted to HKD 123,288,895,000, an increase from HKD 119,115,862,000 at the end of 2022[20]. Revenue Sources - Revenue from construction contracts decreased to HKD 18,673,338,000, down 35.8% from HKD 29,024,172,000 in the previous year[11]. - Revenue from construction-related investment projects significantly increased to HKD 32,287,323,000, up 58.5% from HKD 20,383,539,000 in 2022[11]. - The revenue from the Macau segment reached HKD 58.63 billion, an increase of 0.9% year-on-year, with segment profit rising 67.7% to HKD 6.96 billion[43]. - The revenue from the mainland China segment recorded a recovery growth of HKD 320.40 billion, up 46.7% from HKD 218.39 billion last year, with segment profit increasing by 15.1% to HKD 57.21 billion[44]. - The construction-related investment projects generated a repurchase amount of HKD 192.62 billion, a year-on-year increase from HKD 141.27 billion[45]. Operational Efficiency and Future Plans - The company is focusing on enhancing its operational efficiency and exploring new market opportunities to drive future growth[12]. - The company plans to continue expanding its construction-related investment projects, particularly in government and public-private partnership models[12]. - The company plans to continue expanding its investment in high-quality markets such as the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area[44]. - The company aims to leverage technology to enhance competitiveness and pursue high-quality development in the second half of the year[50]. Market Performance - The new contract value for the first half of 2023 reached HKD 96.82 billion, representing a year-on-year increase of 7.0%[30]. - In the mainland China market, new contract value reached HKD 48.59 billion, reflecting an 8.0% year-on-year growth[31]. - The company has expanded its MiC business into 11 provinces, with successful projects in Guangdong, Shandong, and Anhui[31]. - In the Hong Kong market, the new contract amount reached HKD 37.36 billion in the first half of the year, representing a year-on-year increase of 36.4%[32]. - The Macau market achieved a new contract amount of HKD 4.25 billion, maintaining a leading position in the market[32]. Technological Advancements - The group was awarded 102 patents, including 14 invention patents, and received multiple awards for technological advancements[40]. - The group launched the MiC concrete product series at various international forums, enhancing its market presence and technological innovation[39].