[ET Net News Agency, 4 September 2019] HSBC Global Research lowered its target price
for China Communications Construction (CCC)(01800) to HK$7.1 from HK$8.3 and maintained
its "hold" rating.
The research house said CCC reported a weak set of results for 2Q as strong revenue
growth of 20% was offset by weak GP margin of 11.3% (versus 14.3% in 2Q 2018). A 25%
increase in 1H in subcontracting costs to RMB82bn seems to be the key reason for the
decline in GP margin.
The 31 toll roads in operation reported a net loss of RMB1.24bn during 1H with revenue
of RMB2.8bn. The operational toll road asset value was RMB160bn. HSBC considers this as a
key concern going forward for the company's profitability and poor free cash flows. (KL)
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01800 CHINA COMM CONS
Nominal 
4.170 +0.020 (+0.482%) Others
04/09/2019 15:17
{I-bank focus}HSBC lowers China Comm Cons (01800) to HK$7.1
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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