Morgan Stanley, in its report, stated that CHINA COMM CONS (01800.HK)'s management is very confident to achieve a rapid growth of new contracts and revenue from overseas this year, after the Central government unveiled the "One Belt, One Road" plan. CCCC also plans to cut its capex and lowers its debt leverage by spinning off subsidiaries and disposing of non-core assets. The research house preferred CHINA COMM CONS over other railway stocks. The company's FY15 P/E of 9.5x is still lower than its counterparts. The stock was rated at Overweight, with a target price of $12.
CHINA COMM CONS's management is convinced of its overseas business and expected to record a double digit or even nearly 20% growth in new contracts and revenue this year. The GP margin of overseas construction projects can reach 12-14%, as compared with 7% on average for domestic projects.
AAStocks Financial News
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