- China Communications Construction Co. reported an IFRS net income of 23.85 billion yuan, slightly below the estimated 24.35 billion yuan.
- The company’s IFRS revenue reached 768.24 billion yuan, which fell short of the projected 772.58 billion yuan.
- Infrastructure construction revenue surpassed expectations, coming in at 682.60 billion yuan against the estimated 680.66 billion yuan.
- Infrastructure design revenue underperformed, totaling 36.29 billion yuan compared to the estimate of 47.87 billion yuan.
- Dredging revenue exceeded predictions, achieving 59.46 billion yuan against an estimate of 55.23 billion yuan.
- Earnings per share were reported at 1.40 yuan.
- The final dividend per share was declared at 16.161 RMB cents, missing the estimate of 30.250 RMB cents.
- New contract value for the period amounted to 1.88 trillion yuan.
- Infrastructure construction gross margin was recorded at 10.9%, slightly below the estimated 11.6%.
- Infrastructure design gross margin stood at 20%, exceeding the predicted 18.9%.
- Dredging gross margin met expectations at 13.2%.
- The company has 6 buy ratings, 2 hold ratings, and no sell ratings from analysts.
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China Communications Construction on Smartkarma
Analysts on Smartkarma, like Osbert Tang, CFA, are covering China Communications Construction with insightful research. Osbert suggests a strategic move of a pair trade, advocating to go long on China Communications Construction (1800 HK) and short on China Railway Group (390 HK). This strategy aims to leverage CCCC’s stronger contract momentum, superior urban construction exposure, and higher dividend yield compared to CRG. Osbert highlights that CCCC’s performance is expected to improve throughout 2025, making it an attractive investment opportunity.
A look at China Communications Construction Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
China Communications Construction Company Ltd. is positioned for a bright future ahead, according to Smartkarma Smart Scores. With top ratings in Value and Dividend, the company showcases strong fundamentals and a commitment to rewarding its investors. The high Growth and Momentum scores further bolster its attractiveness, indicating potential for expansion and positive market sentiment. However, the lower Resilience score suggests some vulnerability to market fluctuations but does not overshadow the overall positive outlook for the company.
As a transportation infrastructure group engaged in various sectors such as infrastructure construction, design, dredging, and port machinery manufacturing, China Communications Construction Company Ltd. maintains a global presence. With a solid foundation in both financial value and dividend distribution, coupled with promising growth prospects and market momentum, the company appears well positioned to capitalize on future opportunities and deliver continued value to its shareholders despite some resilience concerns.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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