Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

A buy-side analyst with over 15 years of experience investing in Asian markets and specializing in the mid-small cap space, emphasizing value investing in companies with good free cash flows/dividends and long-term holding horizons. 
Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd. It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity, Bottom-up Analyst

China State Construction: Great Numbers, But Taking a Breather for Now

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

China State Construction Development / Equity Bottom-Up

China State Construction Development (830 HK)

<a href="https://www.smartkarma.com/entities/china-state-construction-dev" target="_blank" data-smartkarma-citation="entities:3892:1" rel="noopener">Far East Global (830 HK)</a>, now known as China State Construction Development Holdings (CSCD), a subsidiary of <a href="https://www.smartkarma.com/entities/china-state-construction-int-l-holdings" target="_blank" data-smartkarma-citation="entities:10038:1" rel="noopener">China State Construction Int'L (3311 HK)</a>, presents an excellent short-term opportunity with an upside north of 50% ( from the current share price of 1.2 HKD).
We like this one-stop façade solution service provider for the following reasons:
<ul>
<li>Strong brand name in the curtain wall business in Hong Kong and Macau.</li>
<li>Margin expansion story due to the phasing out of US/Canada business and HK/Macau and China growth.</li>
<li>Potential for profit alert for H1 2021 and potential to increase dividend payout ratio.</li>
<li>Massive growth opportunity in China.</li>
</ul>
Risk 
<ol>
<li>A downturn estate for China and Hong Kong.</li>
<li>Issues relating to execution in phasing out of the overseas business.</li>
</ol>

Far East Global (830 HK), now known as China State Construction Development Holdings (CSCD), a subsidiary of China State Construction Int'L (3311 HK), presents an excellent short-term opportunity with an upside north of 50% ( from the current share price of 1.2 HKD).
We like this one-stop façade solution service provider for the following reasons:

Strong brand name in the curtain wall business in Hong Kong and Macau.
Margin expansion story due to the phasing out of US/Canada business and HK/Macau and China growth.
Potential for profit alert for H1 2021 and potential to increase dividend payout ratio.
Massive growth opportunity in China.

Risk 

A downturn estate for China and Hong Kong.
Issues relating to execution in phasing out of the overseas business.


China State Construction Development (830 HK): A Short-Term Opportunity with Tremendous Upside