The Zhitong Finance App learned that Zhongtai International released a research report stating that it reaffirmed the “buy” rating of China Construction Development (00830), with a target price of HK$3.31. Recently, the company announced the sale of non-core engineering supervision business to its parent company, CNOOC Property (02669), at a price of 950 million yuan. Subject to approval by the Extraordinary General Meeting of Shareholders, the transaction is expected to be completed within 2023. This transaction can bring it 530 million yuan in revenue, unlock value, and help the company develop its main façade engineering business. The bank expects the company to continue selling non-core assets.

According to the report, China Construction Industry's 3Q23 revenue rose 30.1% year on year, revenue for the first three quarters of 2023 rose 25.5% year on year to 6.41 billion yuan (HK$, same below), operating profit increased 35.8% year on year to 660 million yuan, and operating profit margin increased 0.8 percentage points year on year. In the third quarter, the company accelerated the signing of new projects. The amount of new contracts signed increased 15.8% year on year to 2.39 billion yuan, a year-on-year increase higher than 10.2% in the first half of 2023. New curtain wall projects include the Hong Kong Airport Authority Space Corridor, Hong Kong New World Wong Chuk Hang Phase 5, Beijing, and Shenzhen projects. The total amount of new contracts signed in the first three quarters of 2023 increased 11.6% year-on-year to 9.01 billion yuan. As of September 30, 2023, the amount of uncompleted contracts in hand was 16.01 billion yuan, an increase of 15.5% over the previous year.