CCCC under pressure but profit increases 6pc

Business | Kevin Xu 4 Sep 2019

China Communications Construction Company (1800) is facing operating pressure and competition overseas, says board secretary Zhou Changjiang.

The state-owned company is China's largest port builder and dredger. It also constructs roads, bridges and railways.

About 23 percent of value of new contracts was from overseas markets, the company said yesterday.

Zhou said in April that CCCC aimed to make the value of new contracts from overseas account for 30 percent of the total value of new contracts by 2020.

Meanwhile, Zhou expects the Malaysia East Coast Rail Link EPC Project, which was suspended in July 2018 and resumed in July this year, to move to large-scale construction by the year-end or early next year.

The project is part of China's Belt and Road initiative. Malaysia halted construction of the rail link owing to its high costs. The suspension was lifted after the signing of a supplementary agreement in April. The project will now be built with an investment of MYR44 billion (HK$81.79 billion), nearly two-thirds of the original cost, said an announcement by the Malaysia government in April.

Shares of CCCC dipped by 1.47 percent to HK$6.05 yesterday.

Net profit for the six months ended June 30 increased by 6.1 percent year-on-year to 8.76 billion yuan (HK$9.56 billion). Revenue grew by 15.2 percent to 239.09 billion yuan from a year before.

Basic earnings per share were 0.48 fen.

The value of new contracts in the first six months climbed by 15.9 percent year-on-year to 496.73 billion yuan.

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