China Communications Construction (601800): 4Q18 single-year growth rate in the new millennium returns to 2019

China Communications Construction (601800): 4Q18 single-year growth rate in the new millennium returns to 2019

The company’s recent situation On March 15, the company announced a new long-term single situation for 2018 and an internal investment project budget for 2019. We briefly comment as follows.

Comments 4Q18 municipal environmental protection orders increased rapidly every year, driving the overall order growth back to positive.

At the beginning of 2018, the company’s new chronic order was 8,908.

7 ppm, an increase of ten years.

1%, 4Q18 of the new millennium single 3,080.

700 million, an increase of 10 in ten years.

4%, the growth rate in a single quarter is significantly improved compared to the second and third quarters (2-3Q18 intervals of 7.
).

7%, 16.

9%), mainly due to a single significant 佛山桑拿网 increase in new growth in municipal and environmental protection (+107 in the fourth quarter of 2018).

7%), while highway, port, railway, overseas engineering single season orders can still be changed.

We expect to gradually pick up the overall recovery of domestic infrastructure project bidding. The company’s new forecast single growth rate in 2019 is trying to return to 5?
10%.

Investment orders are expected to remain flat in 2019, but landing is expected to accelerate.

The company’s budget for new territorial investment projects in 2019 is US $ 150 billion, which is the same as the same period in 2018 (the actual company’s purchasing power parity new contract value in 2018 was 1,523.

3 trillion, accounting for 17 of the overall new contract signed.

1%, a decline of 19 per year.

4%), mainly due to the 上海夜网论坛 company’s initiative to control the scale of investment under the “de-leveraging” requirement.

In 2019, the company’s investment projects plan to complete an investment of 900 million US dollars, an increase of 5 compared with the budget before 2018.

9%, the budgeted investment volume has steadily increased, mainly due to the reorganization of the contract reserves of previous contracts and the gradual improvement of project financing.

Overseas orders and revenue seek to accelerate.

At the beginning of 2018, the company’s foreign millennium alone was 1,590.

1 ‰, a ten-year average of 26.

0%, making its debut since 2013, mainly due to the uncertainty of the international political and economic outlook in 2018, which has hindered the development of overseas business. In 2017, the East Coast Railway project in Malaysia formed a high base.

We expect the company’s overseas orders to return to growth in 2019. The main reasons are: 1) the base number in 2018; 2) the second “Belt and Road” summit forum to promote the provision of catalysts for overseas projects.

The recognition of overseas income is also expected to accelerate.

Estimates and recommendations We expect that the company’s domestic and overseas project orders and revenue recognition in 2019 are expected to achieve marginal improvement.

The current A / H can correspond to 9.

4/5.

7x 2019e P / E and 8.

4/5.

1x 2020e P / E (based on EPS after replacing perpetual debt interest and preferred stock dividends).

Maintain “Recommended” rating for A / H shares and maintain target price.

1 yuan / 12.

0 is unchanged, corresponding to 12.

1/8.

1x 2019e P / E, 29% / 43% room for earlier price.

The new risk growth single-digit growth was worse than expected, and cash flow continued to deteriorate.