- China Communications Construction‘s (CCC) FY infrastructure construction revenue was 755.65 billion yuan.
- The infrastructure construction revenue specifically accounted for 667.80 billion yuan, slightly lower than the estimated 672.48 billion yuan.
- Infrastructure design revenue amounted to 47.3 billion yuan, missing the estimate of 48.85 billion yuan.
- Dredging revenue came in at 53.51 billion yuan, falling short of the estimated 57.57 billion yuan.
- A final dividend per share of 29.253 RMB cents was declared, surpassing the estimated 23.250 RMB cents.
- The new contract value stood at a whopping 1.75 trillion yuan.
- The gross margin for infrastructure construction was 11.6%, slightly higher than the estimated 11.1%.
- Infrastructure design gross margin was 18.5%, beating the estimate of 17.6%.
- However, the gross margin for dredging was 13.3%, a little lower than the estimated 13.5%.
- Analysts’ opinions on CCC were largely positive with 9 buys, 1 hold, and no sells.
China Communications Construction on Smartkarma
China Communications Construction (1800 HK) has been receiving positive analyst coverage on Smartkarma, an independent investment research network. According to Osbert Tang, CFA, in his report “China Comm Const (1800 HK): New Contracts Gathering Steam“, the company’s 4Q23 new contracts have increased by 14%, surpassing the growth rate in the first nine months of the year. The estimated backlog for the end of FY23 is also expected to cover almost 5 times the revenue for FY24. This strong performance has led to a bullish sentiment from Tang.
In another report titled “China Comm Const (1800 HK): Well Worth Revisiting“, Tang reiterates his bullish stance on the company, stating that it has become very attractive due to an unjustified fall in share price. He highlights that the company’s recurring net profit has surged by 68.5% in 2Q23 and its contract outlook is not a concern, with a sufficient backlog and low price-to-earnings ratio (PER). Tang also believes that the market has misread the company’s strong 2Q23 results and that there should not be any concerns about its contract outlook. The report has a bullish lean towards China Communications Construction‘s future performance.
A look at China Communications Construction Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
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
The long-term outlook for China Communications Construction is looking positive based on its Smartkarma Smart Scores. With an overall score of 4 out of 5, the company ranks high in terms of value and dividend, indicating strong financial stability and potential for returns for investors. Additionally, its momentum score of 4 suggests that the company is performing well in the market and has a positive growth trajectory.
As a transportation infrastructure group, China Communications Construction is well-positioned for long-term success. The company has a global presence and is involved in various aspects of infrastructure, including construction, design, dredging, and manufacturing. With a resilience score of 2, the company may face some challenges, but its strong scores in other areas suggest that it is well-equipped to handle them and continue to grow in the long run.
Overall, China Communications Construction‘s Smartkarma Smart Scores indicate a solid outlook for the company, making it a potentially attractive investment for those looking for stability, growth, and returns in the transportation infrastructure sector.
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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