CHINA STATE CON(HK:03311) Changjiang Securities·2025-03-13 02:23Investment Rating - The investment rating for China State Construction International is "Buy" and is maintained [8]. Core Views - On March 11, China State Construction International announced that Oriental International subscribed to 244.6 million new shares at HKD 12.26 per share, representing a premium of approximately 3% over the average price in the last five days prior to the agreement [2][6]. - Oriental International is now a strategic shareholder, increasing its stake from 3.56% to approximately 8.02% post-transaction, and will appoint a non-executive director [6]. - The collaboration between China State Construction International and Oriental International is expected to enhance business synergies, particularly in revitalizing state-owned enterprise land assets [6]. - The company is expanding its MiC (Modular Integrated Construction) business in mainland China, achieving coverage in major cities and is well-positioned to benefit from increased infrastructure spending in Hong Kong, projected to rise from an average of HKD 90 billion to HKD 120 billion annually [6]. - With a projected net profit of HKD 10.5 billion for 2024 and a dividend payout ratio of 30%, the company is expected to yield a dividend rate of approximately 5.1%, indicating strong dividend attributes [6]. Summary by Sections Event Description - On March 11, China State Construction International announced a subscription by Oriental International for 244.6 million new shares at HKD 12.26 each, reflecting a 3% premium [2][6]. Business Collaboration - Oriental International, a subsidiary of China Orient Asset Management, is now a strategic shareholder, which may lead to enhanced collaboration in asset management and investment opportunities [6]. Market Outlook - The company is actively pursuing growth in both mainland and Hong Kong markets, with significant infrastructure projects expected to drive future revenue [6].