Update from the China Anti-Corruption Front

CCCC Roadshow Takeaway: PPP and Overseas Market Remain Pillars of Growth; FVE Maintained at HKD 12.5

China Communications Construction Base Line Support to Accumulate

CCCC Company Visit Takeaways: Overseas to Drive Margin Expansion; PPP Holds Long-Term Potential

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Equity Bottom-Up

China Communications Construction / Equity Bottom-Up

China Communications Construction (1800 HK)

No-moat-rated China Communications Construction Company, or CCCC, held a conference call to discuss its 2016 order book and 2017 growth outlook. It appears CCCC is on track to meet our full-year 9% net income growth expectation in 2016, and the 2017 order book target of CNY 900 billion (23% year-on-year growth) reaffirms our view that CCCC should be able to deliver 8%-9% annual top-line growth over the next 2-3 years. With primary top-line growth drivers being the more profitable public private partnerships, or PPP, projects and overseas contracts, our assumption for margin expansion remains intact and we expect net earnings to grow at a faster pace of 9%-10% per year until 2020.We raise our fair value estimate to HKD 11.50 per share from HKD 11 and consider the current share price fairly valued.Analyst: John Hu

No-moat-rated China Communications Construction Company, or CCCC, held a conference call to discuss its 2016 order book and 2017 growth outlook. It appears CCCC is on track to meet our full-year 9% net income growth expectation in 2016, and the 2017 order book target of CNY 900 billion (23% year-on-year growth) reaffirms our view that CCCC should be able to deliver 8%-9% annual top-line growth over the next 2-3 years. With primary top-line growth drivers being the more profitable public private partnerships, or PPP, projects and overseas contracts, our assumption for margin expansion remains intact and we expect net earnings to grow at a faster pace of 9%-10% per year until 2020.We raise our fair value estimate to HKD 11.50 per share from HKD 11 and consider the current share price fairly valued.Analyst: John Hu

CCCC's Solid Top-Line Outlook in 2017 Intact Amid Strong Overseas Demand; FVE Raised to HKD 11.50