China Communications Construction (1800) Earnings: Strong 12.02B Yuan Net in 1H 2023; New Contracts Hit 960.87B Yuan

China Communications Construction on Smartkarma

Analyst coverage on China Communications Construction on Smartkarma has been positive, with Osbert Tang, CFA, providing insights on the company’s growth prospects. In a report titled “China Comm Const (1800 HK): Robust Growth Prospects Accelerating,” Tang highlights the surge in overseas contracts, growing backlog, and improving margins. Factors such as low valuation, high dividend yields, and a secured pipeline make the company attractive for investors.

In another report titled “China Comm Const (1800 HK): Continue to Deliver,” Tang emphasizes gross margin expansion and positive earnings growth in the first quarter of 2024. With estimates of the backlog covering 4.5x FY24F revenue, China Communications Construction shows healthy earnings growth and remains undervalued based on its price-to-earnings ratio and price-to-book ratio despite outperforming year-to-date. The overall sentiment towards the company appears bullish based on these research insights.

A look at China Communications Construction Smart Scores

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

Analysts at Smartkarma have provided positive long-term outlooks for China Communications Construction Company Ltd. across various factors. With top scores in Value and Dividend categories, the company is considered strong in these areas, signaling good investment potential in terms of undervaluation and dividend payouts. Additionally, a solid Growth score implies promising future development prospects within the transportation infrastructure sector.

However, China Communications Construction scores lower in Resilience, reflecting some vulnerability to economic fluctuations or industry challenges. Nevertheless, its high Momentum score suggests strong market performance and investor interest, indicating current positive trends in the company’s financial performance. This mix of scores indicates a generally favorable outlook for China Communications Construction, making it an intriguing prospect for investors seeking a balanced investment profile.

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