Glonghui, July 29 | Citibank released a report stating that due to China Railway Construction's performance in the first quarter falling short of expectations, and a possible slowdown in order momentum for the rest of the year, the profit forecast for this year and next two years was lowered by 10 to 12%. According to Citi, considering the high base last year and the lack of working capital for infrastructure projects due to the deterioration of the real estate market, it is expected that China Railway Construction's order momentum will continue to slow down after only a 1.5% increase last year and a 2% increase in the first quarter of this year. The annual order growth is expected to be less than 5%. Citi lowered its target price for China Railway Construction from HK$7.7 to HK$7.2, and it still maintains a “buy” rating because this year's dividend rate is around 9%. In the infrastructure industry, China's construction is growing rapidly and management execution is strong. The bank favors Chinese construction over China Railway.
大行评级｜花旗：下调中国铁建目标价至7.2港元 维持“买入”评级
Major bank rating｜Citi: Downgraded China Railway Construction Corporation's target price to HKD 7.2 while maintaining a “buy” rating.
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