① Zhejiang Communications Technology's subsidiary company won a project worth about 6.8 billion yuan; ② In recent years, the company has won many big orders in the field of urban construction; ③ The high prosperity of regional infrastructure is expected to support the release of the company's performance.
Since the beginning of this year, there have been frequent announcements of large-scale infrastructure investments in Zhejiang. On the basis of the 'thousands of projects with trillions of yuan' engineering construction, a new batch of landmark cultural and tourist attractions, beautiful demonstration towns and other projects have been put on the agenda one after another, driving up orders for local engineering enterprises such as Zhejiang Communications Technology (002061.SZ).
Today, Zhejiang Communications Technology announced that its subsidiary companies Zhejiang Jiaogong Group Co., Ltd. and Zhejiang Jiaogong Underground Engineering Co., Ltd., together with relevant parties, have formed a consortium to participate in the bidding and won the bid for the Ronghu Science and Technology Innovation Industrial Park cooperative development project (referred to as 'Ronghu Park'). The total investment of the project is about 6.8 billion yuan, and the cooperation period is tentatively set at 10 years, of which the construction period is tentatively set at 5 years.
In this project consortium, the two companies under Zhejiang Communications Technology contributed a total of 89% of the shareholding, with the remaining major contributor being the bid winner Hangzhou Linping Urban Construction Group Co., Ltd.
Previously, Zhejiang Communications Technology stated during institutional research that in the first quarter of 2024, the company has won a total of 202 new projects, with a total contract amount of 20.428 billion yuan, achieving a slight increase year-on-year. From the disclosed data so far this year, the number of new projects and their total amount announced by the company has also increased significantly year-on-year since April, indicating that the growth of its Q2 orders is still strong.
Before winning the Ronghu Science and Technology Innovation Industrial Park project, the company had previously won the bidding for the development projects in Xianju, Taizhou and Kaihua, Quzhou in 2023, with corresponding investment scales of around 5.4 billion yuan and 5.5 billion yuan respectively. Compared to the company's main transportation infrastructure business, these urban construction business orders generally have a larger scale and more diverse construction contents.
As a regional infrastructure leader, Zhejiang Communications Technology's performance is closely related to the prosperity of Zhejiang's infrastructure investment. According to calculations by Tianfeng Securities, with the consideration of the higher planned value of 350 billion yuan for Zhejiang's transportation investment in 2024, and the average annual growth rate of over 31% required for the major shareholder Zhejiang Investment Group's transportation investment in 2024 and 2025 to achieve the '14th Five-Year Plan' target, the high prosperity of regional infrastructure is expected to support the company's performance release.