[ET Net News Agency, 29 April 2020] BOCOM Research lowered its target price for China
Communications Construction (CCC)(01800) to HK$6 from HK$6.3 and maintained its "buy"
rating.
The research house said both CCC's gross/operating margin shrank in 1Q, by 0.7/1.4ppts,
on increased taxes and surcharges, and decreased income contribution from concession
projects due to toll fee waiver during the epidemic.
BOCOM expects recovery and steady revenue growth in the rest of 2020, in view of solid
newly-signed contracts in 1Q. The total new contract value of CCC increased by 11.9% in
1Q, thanks to the contribution from the port and municipal projects. It also expects
revenue growth of domestic projects to exceed that of overseas projects in 2020, given a
higher work resumption rate for domestic construction projects. (KL)