Summary of the report

At present, the convertible bond of construction engineering has the property of stock.

The convertible bond project raises 1.66 billion yuan to be invested in the implementation of the project and to repay bank loans. The dilution rate of shares is 18.77%, the interest rate clause is higher than the average level of the market, the revised terms are relatively loose, the value of pure debt is 97.80 yuan, and the debt bottom protection is strong. At present, it has stock nature.

Chongqing is the largest high-quality construction engineering enterprise with obvious regional advantages.

The company is the largest construction engineering enterprise in Chongqing, with a strong shareholder background. Infrastructure contributes to steady economic growth, and the accelerated landing of projects brings room for growth in the company's performance. Business income continues to expand, regional advantages are more obvious, profitability is expected to further improve, attach importance to research and development, continue to improve the level of high-quality technology, stock valuation is located in the upper reaches of the industry.

Investment suggestion: the leading position of regional construction project is stable, and it is suggested to pay active attention to it. Generally speaking, the scale of construction convertible bond issue is medium, the rating is OK, the next revision terms are loose, and the debt bottom protection is strong. Chongqing Construction Engineering Co., Ltd. is a leading enterprise of regional construction engineering in Chongqing, with obvious regional advantages and strong shareholder background. The company attaches importance to research and development, continues to improve the level of high-quality technology, the current order reserve is sufficient, with steady growth to promote the rapid development of infrastructure, high prosperity of the industry, the project accelerated landing company performance is expected to be further released. We suggest that we should actively pay attention to the target and lay it out in the appropriate low position.

Risk Tips:

There is uncertainty in macro policy, the progress of infrastructure projects is not as expected, and the implementation of policies is not as strong as expected.