Gtja Securities Research Report reiterated a "buy" rating on China State Construction Engineering Corporation (03311.HK) with a target price raised from 15 yuan to 15.5 yuan. The company's earnings per share forecast for this year to 2026 are adjusted downwards by 0.3%, 1.9%, and 3.5% to 2.034 yuan, 2.31 yuan, and 2.589 yuan, respectively.

The bank pointed out that the company's net profit for the first half of the year increased by 12.7% year-on-year to 5.5 billion yuan, in line with expectations. The total value of newly signed contracts was 125.1 billion yuan, a year-on-year increase of 29.2%. The target for newly signed contracts in 2024 is 210 billion yuan.

The bank stated that the contribution of technology-driven businesses to the group has increased, and its Prefabricated Construction (MiC) business has successfully expanded to all first-tier cities. It believes that the transformation of population structure and the continuous promotion of dual-carbon targets will drive the application of MiC in the mainland China market. In addition, the continuous promotion of large-scale construction projects in the Hong Kong and Macau markets, such as the acceleration of major development projects in the Hong Kong and Macau, and the promotion of integration into the Greater Bay Area, are all catalysts for China State Construction Engineering Corporation's stock price. (vc/k)

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