Core Viewpoint - China Railway Construction Corporation (CRCC) announced the issuance of its fourth phase of technology innovation perpetual corporate bonds aimed at professional investors, with specific interest rates and payment details outlined [1] Group 1: Bond Issuance Details - CRCC is set to issue two types of bonds: "Tie Jian YK16" and "Tie Jian YK17" [1] - The "Tie Jian YK16" bond has a coupon rate of 2.35%, with an interest payment of 23.50 yuan (including tax) per 1,000 yuan face value [1] - The "Tie Jian YK17" bond has a coupon rate of 2.50%, with an interest payment of 25.00 yuan (including tax) per 1,000 yuan face value [1] Group 2: Payment Schedule - Interest payments for the bonds will commence on October 28, 2025, covering the period from October 28, 2024, to October 27, 2025 [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的 任 何 損 失 承 擔 任 何 責 任。 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條而作出。 茲 載 列 中 國 鐵 建 股 份 有 限 公 司（「本公司」）在 上 海 證 券 交 易 所 網 站 刊 登 的「中 國鐵建股份有限公司2024年面向專業投資者公開發行科技創新可續期 公 司 債 券（第 四 期）2025年 付 息 公 告」，僅 供 參 閱。 承董事會命 中國鐵建股份有限公司 董事長 戴和根 中國‧北京 2025年10月20日 於 本 公 告 日 期，董 事 會 成 員 包 括：戴 和 根 先 生（董 事 長、執 行 董 事）、郜 烈 陽 先 生（非 執 行 董 事）、馬 傳 景 先 生（獨 立 非 執 行 董 事）、解 國 光 先 生（獨 立 非 執 行 董 事）、錢 偉 倫 先 生（獨 立 非 執 行 董 事）、王 俊 先 生（獨 ...

Investment Rating - The industry investment rating is "Overweight" [2] Core Viewpoints - The economic operation in the first three quarters of 2025 shows steady progress, with fixed asset investment and manufacturing investment growth continuing to decline. The GDP growth rates for Q1, Q2, and Q3 of 2025 are 5.4%, 5.2%, and 4.8% respectively, leading to a cumulative year-on-year fixed asset investment decrease of 0.5% [4][5] - Infrastructure investment is under pressure, with transportation, water conservancy, and public utility investment growth all facing challenges. The total infrastructure investment growth rate (including all categories) is 3.3%, down 2.1 percentage points from the previous month [5] - Real estate investment remains low, with a year-on-year decrease of 13.9% in the first nine months of 2025, indicating a weak recovery in investment [10] Summary by Sections Economic Overview - The GDP growth for the first three quarters of 2025 is 5.2%, with a decline in fixed asset investment and manufacturing investment growth rates [4][5] Infrastructure Investment - Total infrastructure investment growth is 3.3%, with specific sectors like transportation and public utilities showing negative growth [5] Real Estate Investment - Real estate investment has decreased by 13.9% year-on-year, with construction starts and completions showing slight improvements [10] Investment Recommendations - The report suggests that the overall industry is weak, but regional investments may gain flexibility with national strategic layouts. Recommended companies include China Chemical, China Energy Construction, China Railway, and China Railway Construction [14]

作为本次土拍起总价最高的地块，该地块紧邻苏河湾万象天地和苏州河，周边教育、医疗、商业配套完 善，东侧靠近苏河湾润府，西侧为中粮天悦壹号，都是区域内的热门高端改善项目。 杨浦区N090602单元D1-7地块是本批次土拍中溢价率最高的标的。历经多轮竞价，保利置业从中国铁 建、北京建工与东亚新华联合体、越秀与上海城投联合体等多家房企中脱颖而出，最终以26.16亿元成 功摘地，溢价率14.69%，成交楼面价约6.996万元／平方米。 新华财经上海10月20日电（谈瑞）上海2025年第八批次集中土拍20日落下帷幕。本次土拍推出的6宗优 质地块分布于徐汇、静安、杨浦、宝山、松江五区，总起始价约184.9亿元。所有地块顺利成交，总成 交额达198.7亿元。 作为本次土拍的"明星地块"，徐汇区WS5单元188N-I-21地块的成交备受瞩目。该地块最终由中海以 44.65亿元竞得，成交楼面价高达14.85万元／平方米，溢价率10%。 该地块位于龙兰路与云锦路交汇处，紧邻11号线云锦路地铁站，一街之隔便是曾经的楼市流量标杆云锦 东方，该项目早在2023年5月三期二批次入市时价格就已经达到了16.5万元／平方米；此外，地块周边 还 ...

Core Insights - Chinese companies are entering a mature phase of overseas expansion, with the Middle East emerging as a key market due to its long-term potential and strategic importance in global industrial layout [1][2][3] - Understanding local needs and integrating into the local ecosystem are essential for Chinese enterprises to establish a long-term presence in the Middle East [1][4] Summary by Sections Investment Trends - The Middle East, particularly Saudi Arabia and the UAE, has become a favored destination for Chinese investments, attracting 84% and 79% of surveyed companies respectively [1][2] - The current phase of overseas expansion can be categorized into three stages: resource-based, asset acquisition, and the current focus on capacity output and localized operations [3][4] Market Characteristics - The Gulf Cooperation Council (GCC) countries, especially the UAE, Saudi Arabia, Kuwait, and Qatar, represent significant economic potential, with a young population and strong purchasing power driven by oil resources [4][5] - While there are signs of market saturation in some sectors, the overall long-term value of the Middle East remains intact despite minor bubbles [4][5] Changes in Business Approach - There has been a shift from large state-owned enterprises targeting massive projects to a rise in localized entrepreneurship, with companies establishing headquarters in Dubai and focusing on local operations [7][8] - Chinese enterprises are contributing positively to the local ecosystem by enhancing diversity, transferring technology, and forming effective partnerships with local teams [8][9] Key Success Factors - Successful Chinese companies in the Middle East share three common traits: reliable local partners, well-structured teams, and thorough localization efforts [10][11] - The competitive landscape is complex, with significant challenges in understanding local regulations and the need for product customization [12]

Core Insights - Chinese companies are entering a mature phase of overseas expansion, with the Middle East emerging as a key market. The phrase "if you don't go abroad, you will be eliminated" reflects the reality for many Chinese enterprises [1][3] - PwC's survey indicates that Saudi Arabia and the UAE are the top investment destinations for Chinese companies in the Middle East, attracting 84% and 79% of respondents, respectively [1][3] Stage of Overseas Expansion - The overseas expansion of Chinese companies can be divided into three stages: 1. Resource-based expansion (1990s to around 2010) focused on acquiring minerals and oil to meet domestic needs 2. Asset acquisition (represented by companies like Wanda, Alibaba, and Tencent) aimed at acquiring high-tech companies in Europe and the US, but with limited impact on global capacity layout 3. Capacity output and localized operation, driven by domestic capacity saturation and increased enterprise maturity, with Southeast Asia, the Middle East, and Central Asia as the main battlegrounds [4] Characteristics of Key Middle Eastern Markets - The Gulf Cooperation Council (GCC) countries, particularly the UAE, Saudi Arabia, Kuwait, and Qatar, account for over 95% of the Arab Peninsula's economic output. Each has unique characteristics suitable for different types of Chinese enterprises [5] - For instance, Kuwait has lagging infrastructure, making it suitable for construction and engineering firms, while the UAE is known for its high openness and favorable policies for technology and e-commerce companies [5] Changes in Chinese Companies' Approach - Post-pandemic, there has been a shift from large state-owned enterprises targeting massive projects to a rise in localized entrepreneurship, with some companies establishing headquarters in Dubai and maintaining operational teams locally [7][8] Impact on Local Ecosystem - Chinese companies are contributing positively to the local ecosystem in the UAE by diversifying and internationalizing the economy, transferring technology, and forming stable partnerships with local teams [8] Essential Traits for Success in the Middle East - Successful Chinese companies in the Middle East share three key traits: 1. Reliable local partners familiar with regulations and resource connections 2. A well-structured team combining Chinese core members, local labor, and capital 3. Thorough localization efforts, including in-depth market research and product customization [10] Market Dynamics and Competition - Many sectors in the Middle East are becoming competitive ("red ocean"), and companies are advised to explore opportunities in neighboring countries like Oman and Kuwait rather than solely focusing on the UAE [11] - The complexity of the Middle Eastern market, including hidden rules and high customization requirements, presents challenges for Chinese companies, which must rely on product strength and operational efficiency to compete [12]

Summary of China Railway Construction Corporation (CRCC) Conference Call Industry Overview - The construction industry in China is currently facing challenges, but the situation is improving due to national debt reduction policies and increased infrastructure investment. [2][3][7] Key Points and Arguments Company Performance - CRCC's order decline has narrowed, and the company expects to achieve its annual targets. [2] - In Q3, the company reported strong performance in railway, highway, and overseas business, with a recovery in provincial-level government projects. [2][3] - The company has significantly reduced its participation in new PPP projects since 2023, focusing instead on large-scale infrastructure projects supported by central government funding. [2][5] - The real estate sector's contribution to profits has decreased, with a reported 10% decline in sales in the first half of 2025, although this is better than the industry average. [4][11] Financial Outlook - The company anticipates a positive cash flow for the year, with improved collection rates due to favorable payment conditions from high-quality state-owned enterprise projects. [3][7] - The overall revenue and profit decline rate has slowed compared to the previous year, with expectations for stable performance in Q3 and Q4. [12] Strategic Initiatives - CRCC is focusing on traditional infrastructure business transformation and expansion into emerging industries, aiming to improve gross margins and revenue. [13][15] - The company has initiated planning for the 14th Five-Year Plan, which will align with national strategies and is expected to be finalized by mid-2026. [9][10] Market Conditions - The national commitment to infrastructure investment is strong, with significant progress observed in project execution. [7][8] - Provincial-level government project bidding has accelerated since August 2025, although lower-tier government investments remain weak. [6][7] International Expansion - CRCC has a strong presence in overseas markets, particularly in Africa and the Middle East, where demand for infrastructure is increasing. [18][19] - The company has successfully secured high-quality projects in the Middle East, benefiting from solid financial backing from local owners. [19][20] - In South America, CRCC is capitalizing on the growing market with multiple ongoing projects, facing less competitive pressure compared to other regions. [22] Future Goals - By 2030, CRCC aims to maintain 3 trillion yuan in new contracts and 1 trillion yuan in revenue, with a focus on high-quality operations and asset management. [15] - The company plans to increase the share of emerging industries to over one-third by 2035, with a significant focus on innovation and new product development. [15] Additional Important Information - The company has adopted a cautious approach to land acquisition in the real estate sector to mitigate investment risks. [5][11] - CRCC's strategy includes maintaining a stable debt-to-asset ratio and a commitment to shareholder returns through dividends, which were increased from 16% to 20% in 2024. [16][17]

Investment Rating - The industry rating is maintained as "Outperform" [5] Core Viewpoints - The construction sector is expected to benefit from increased funding and policy catalysts, with a focus on undervalued and high-dividend investment opportunities [13][19] - The construction index decreased by 1.06% during the week, underperforming the broader market by 0.74 percentage points, while the construction transformation and M&A sectors showed positive growth [4][30] - The government is accelerating the implementation of 500 billion yuan in new policy financial tools to support major projects, which is expected to enhance infrastructure growth in the fourth quarter [2][13] Summary by Sections Infrastructure Funding and Policy - The Ministry of Finance will continue to advance the 2026 new local government debt limit to ensure funding for key projects, with an increase of 100 billion yuan from the previous year, totaling 500 billion yuan [2][13] - The issuance of special bonds and long-term special government bonds is progressing rapidly, with a total issuance of 1.148 trillion yuan for the year, nearing 90% of the target [15][16] Valuation and Dividend Analysis - Central state-owned enterprises in the construction sector are showing significantly low price-to-earnings (PE) ratios, with China Chemical at a PE of less than 5%, and price-to-book (PB) ratios also low, indicating potential undervaluation [3][24] - China Construction currently has a dividend yield of 4.86%, outperforming other central state-owned enterprises [3][24] Regional Investment Opportunities - The western region's fixed asset investment grew by 6.6% in the first half of the year, with significant projects in Xinjiang and Tibet expected to catalyze further investment opportunities [19][20] - Key projects include the China-Kyrgyzstan-Uzbekistan railway and the Yaxia hydropower station, which are anticipated to drive demand for construction and related services [20][21] Recommended Stocks - Recommended stocks include China Chemical, China Railway Construction, and China Communications Construction, which are expected to benefit from strategic infrastructure projects and regional growth [9][37] - The report highlights the importance of focusing on high-dividend and low-valuation stocks within the construction sector, particularly in the context of ongoing government support for infrastructure development [3][21]

Investment Rating - The industry investment rating is "Leading the Market - A" and the rating is maintained [5]. Core Viewpoints - The State Council emphasizes strengthening counter-cyclical adjustments, and new urban construction is expected to accelerate. Effective investment is to be expanded, enhancing market vitality and increasing quality supply [16][17]. - Infrastructure investment has maintained steady growth since the beginning of the year, but the growth rate has slightly declined. Q4 is typically a peak construction season for the industry, and with counter-cyclical adjustments, infrastructure investment is expected to accelerate in Q4 [16]. - The report suggests focusing on undervalued construction companies, especially as the fundamentals are expected to improve with policy catalysts and marginal improvements in the economic environment [16][10]. Summary by Sections Industry Dynamics Analysis - The State Council's meeting on October 14 highlighted the need for effective investment expansion and the promotion of new urban infrastructure construction, which is expected to drive growth in the construction sector [16][17]. Market Performance - The construction industry experienced a decline of 1.67%, underperforming the Shanghai Composite Index, but the decoration and renovation sector showed strong performance with a 2.88% increase [18][19]. - The overall industry P/E ratio is 11.88, and the P/B ratio is 0.85, indicating a relatively low valuation compared to other sectors [21]. Key Investment Targets - Recommended stocks include major state-owned enterprises such as China Railway, China Communications Construction, and China State Construction, which are expected to benefit from improved fundamentals and valuation recovery [10][12]. - The report also highlights the potential of companies involved in smart construction and infrastructure, such as those utilizing BIM technology [17][11]. Company Announcements - Recent major contract announcements include significant projects won by companies like Zhongyan Dadi and Shaanxi Construction, indicating ongoing demand in the sector [29][30].

Investment Rating - The industry investment rating is "Overweight," indicating that the industry is expected to outperform the overall market [20]. Core Insights - The report highlights the implementation of smart city infrastructure as a key focus, emphasizing the development of intelligent municipal facilities, smart residential areas, and digital home construction [11][12]. - The construction sector is currently experiencing weak overall demand, but regional investments are expected to gain momentum as national strategies are further implemented [11][12]. Industry Performance - The SW Building Decoration Index decreased by 1.67%, outperforming the CSI 300 Index, which fell by 2.22% [2][4]. - The best-performing sub-industries for the week were decoration curtain walls (+3.44%), steel structures (+2.32%), and design consulting (+0.47%) [4][8]. - Year-to-date, the top-performing sub-industries include infrastructure private enterprises (+53.40%), ecological landscaping (+36.59%), and decoration curtain walls (+33.09%) [4][8]. Key Company Developments - Shaanxi Construction Group won a bid for a 150MW wind power project in Guangxi, with a total contract value of 1.162 billion yuan, accounting for 0.77% of its 2024 revenue [11][12]. - Zhongyan Dadi secured a contract for a nuclear power plant project with a total value of 77 million yuan, representing 9.77% of its 2024 revenue [11][12]. - Major companies recommended for investment include China Chemical, China Railway, and China Railway Construction, with a focus on state-owned enterprises and private firms like Zhizhi New Materials and Honglu Steel Structure [11][12].