CCCC offers to cut price for Malaysia

Business | Tereza Cai 11 Apr 2019

China Communications Construction Co (1800) has confidence in resuming its Malaysia railway project, which was halted in 2018, and says it has offered some solutions to Malaysia, such as price reductions.

Chief financial officer Peng Bihong said there is no need so far to set aside an allowance for the project, as prepaid capital the company received from clients is capable of covering current construction costs.

Peng revealed that the company's target this year is to see 8 percent growth in the value of new contracts, and a 10 percent rise in revenues.

He said the company continues to seek opportunities in the overseas market, especially in the design and consulting business.

It expects overseas business to account for 30 percent of its total business, in terms of new contract value, revenues, and profit in 2020.

As for its remaining stake in Shanghai Zhenhua Heavy Industries, CCCC said it doesn't rule out the possibility to selling out if SZHI's share price is good.

Separately, a market rumor has it that Hopu Investment plans to buy a 15 percent stake in Shenzhen-listed air-conditioner manufacturer Gree Electric Appliances for 51.5 billion yuan (HK$60.1 billion), based on yesterday's closing price of 57.12 yuan per share. Earlier this week, the state-owned controlling shareholder of Gree Electric Appliances, which holds a 18 percent stake, said it would sell all but 3 percent of its shares in Gree, while not disclosing the mystery buyer.

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