中国建筑国际（03311）：东方国际溢价认购，后续业务合作可期

Investment Rating - The investment rating for China State Construction International (3311.HK) is "Buy" and is maintained [11]. Core Views - The report highlights that Oriental International has 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 five days prior to the agreement [7][9]. - The company is expected to benefit from its ongoing expansion in mainland China and Hong Kong, with a focus on the MiC (Modular Integrated Construction) business, which has achieved coverage in major cities [9]. - The anticipated increase in basic engineering expenditure in Hong Kong from an average of HKD 90 billion to HKD 120 billion per year is expected to provide further growth opportunities [9]. Summary by Sections Event Description - On March 11, China State Construction International announced that Oriental International subscribed to 244.6 million new shares at HKD 12.26 each, with a premium of about 3% compared to the average price prior to the agreement [7]. Business Outlook - The company is actively promoting its MiC business in major cities such as Beijing, Guangzhou, Shanghai, and Shenzhen, achieving full coverage in first-tier cities [9]. - The Hong Kong government's budget forecast indicates an increase in annual basic engineering expenditure, which is expected to enhance the company's growth prospects [9]. - With a projected net profit of HKD 10.5 billion for 2024 and a 30% dividend payout ratio, the company's current market value corresponds to a dividend yield of approximately 5.1% [9]. Strategic Partnership - Oriental International, a long-term shareholder, has now become a strategic shareholder, increasing its stake from 3.56% to approximately 8.02% post-transaction [9]. - The partnership is expected to facilitate business synergies, particularly in the area of revitalizing state-owned enterprise land assets [9].