Investment 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].

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].