[ET Net News Agency, 4 September 2019] HSBC Global Research lowered its target price
for China Railway Construction Corporation (CRCC)(01186) to HK$15.4 from HK$16.5 and
maintained its "buy" rating.
The research house said CRCC reported a strong set of 2Q results with revenue and EPS
growing by 14% and 15%, respectively. Cash flow from operations was a positive RMB7.2bn,
which was helped by an improvement in annualised receivables days from 64 days in 2018 to
57 days for 1H 2019.
HSBC thinks the company would like to continue its deleveraging effort and improve cash
flows. It maintained its FY2019 new contract growth of 6.8%. (KL)