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Yangtze Business Daily NewsChina Communications Construction Company (601800.SH, 01800.HK) has a stable and positive development trend.

On the evening of July 29, China Communications Construction announced that the value of newly signed contracts in the first half of 2024 was 960.867 billion yuan, a year-on-year increase of 8.37%. During the reporting period, the value of newly signed overseas contracts was 196.065 billion yuan, a year-on-year increase of 38.88%.

As a leading Chinese transportation infrastructure company, China Communications Construction has stable profitability. Its revenue and net profit continued to grow from 2021 to 2023, and the good growth trend continued in the first quarter of 2024.

China Communications Construction has strengthened its research on key core technologies and continuously improved its comprehensive competitiveness. From 2020 to 2023, the company's R&D investment will be 20.155 billion yuan, 22.821 billion yuan, 23.631 billion yuan, and 27.707 billion yuan, respectively, exceeding 200 billion yuan for four consecutive years.

Overseas contracts accounted for 20% of the total in the first half of the year

China Communications Construction Company continued to operate steadily.

According to the latest disclosed operating data, in the first half of 2024, China Communications Construction's newly signed contract amount was 960.867 billion yuan, a year-on-year increase of 8.37%, completing 48% of the annual target (calculated based on an increase of 13.5% based on the newly signed contract amount of 1,753.215 billion yuan in 2023).

In terms of business, in the first half of 2024, China Communications Construction's infrastructure construction business, infrastructure design business, dredging business and other businesses were RMB 863.378 billion, RMB 32.656 billion, RMB 59.683 billion and RMB 5.150 billion, respectively, up 9.39%, 21.91%, -4.11% and -38.71% year-on-year, respectively.

The Yangtze Business Daily reporter noted that in recent years, China Communications Construction has focused on its main responsibilities and achieved remarkable results in market development. From 2020 to 2023, the company's newly signed contract amounts were all above one trillion yuan, namely 1,066.799 billion yuan, 1,267.912 billion yuan, 1,542.256 billion yuan, and 1,753.215 billion yuan, respectively, up 10.59%, 18.85%, 21.64%, and 13.68% year-on-year, respectively, with double-digit growth rates each year.

China Communications Construction said that the growth in the amount of newly signed contracts mainly came from the increased construction demand for overseas projects, urban construction, and national strategic key projects of ports and bridges. The business structure has been continuously improved, the scale of spot exchange has been steadily expanded, and the quality and efficiency of investment have been significantly improved. As of December 31, 2023, the company has sufficient order reserves and holds an unfinished contract amount of 3450.659 billion yuan.

As of the end of the first quarter of 2024, the balance of China Communications Construction's contract liabilities was 81.954 billion yuan, an increase of 8.478 billion yuan from 73.476 billion yuan at the end of 2023.

It is worth mentioning that in accordance with the strategy of "internationalization of the company" and overseas priority development, China Communications Construction has vigorously developed overseas markets in recent years. The amount of newly signed overseas contracts has grown rapidly and its share has increased significantly.

From 2022 to the first half of 2024, the newly signed contract amounts of China Communications Construction's various businesses from overseas regions were RMB 216.782 billion, RMB 319.746 billion and RMB 196.065 billion, respectively, up 0.37%, 47.5% and 38.88% year-on-year, respectively, accounting for approximately 14%, 18.24% and 20% of the company's newly signed contract amounts.

Revenue and net profit increased for three consecutive years

China Communications Construction is a leading global large-scale integrated infrastructure service provider, mainly engaged in the investment, construction and operation of transportation infrastructure, equipment manufacturing, urban comprehensive development, etc., providing customers with a package of solutions and comprehensive integrated services in investment financing, consulting planning, design and construction, management and operation. It is the world's largest port, highway and bridge design and construction company, the world's largest dredging company; China's largest international engineering contracting company, China's largest highway investor; and has the world's largest fleet of engineering ships. The company has 35 major wholly-owned and holding subsidiaries, and its business footprint covers all provinces, municipalities, autonomous regions, Hong Kong and Macao Special Administrative Regions in China and 139 countries and regions in the world.

A reporter from the Yangtze Business Daily found that China Communications Construction Corporation relied on excellent technology to win the market, and achieved practical results in tackling a number of "bottleneck" technologies. For example, the construction of 30,000 cubic meter capacity dredgers was accelerated, the first batch of domestic dedicated offshore wind power operation and maintenance mother ships broke the foreign technology monopoly, and the localization of dredging core components and software platforms achieved phased results.

As of the end of 2023, China Communications Construction has won a total of 40 National Science and Technology Progress Awards, 5 National Technological Invention Awards, 130 Lu Ban Awards, 400 National Quality Engineering Awards (including 46 gold awards), 120 Zhan Tianyou Awards, 2 China Patent Gold Awards, and 39 China Patent Excellence Awards; the company has participated in the promulgation of 162 national standards and 528 industry standards as the main editor; and has a total of 34,343 authorized patents.

From 2020 to 2023, CCCC's R&D investment was RMB 20.155 billion, RMB 22.821 billion, RMB 23.631 billion, and RMB 27.707 billion, respectively, exceeding RMB 20 billion for four consecutive years, accounting for 3.21%, 3.33%, 3.28%, and 3.65% of its operating income, respectively, showing an overall upward trend. By the end of 2023, CCCC had 17,570 R&D personnel, accounting for 12.13% of the company's total headcount.

In a complex and changing global environment, China Communications Construction has maintained steady growth in its business scale and its operating performance has continued to reach new heights.

From 2021 to 2023, the company's operating income will be 685.8 billion yuan, 721.9 billion yuan, and 758.7 billion yuan, up 9.28%, 5.26%, and 5.10% year-on-year, respectively; the corresponding net profits will be 17.99 billion yuan, 19.26 billion yuan, and 23.81 billion yuan, up 11.04%, 7.05%, and 23.61% year-on-year, respectively. China Communications Construction's operating income and net profit have achieved positive growth for three consecutive years.

In 2024, China Communications Construction's performance has a "good start". In the first quarter, the company's operating income and net profit were 176.9 billion yuan and 6.141 billion yuan, respectively, up 0.18% and 10.00% year-on-year. Both China Communications Construction's operating income and net profit hit a record high for the same period.

According to the business plan, in 2024, China Communications Construction's target new contract amount is planned to increase by no less than 13.5% year-on-year, and its revenue target is planned to increase by no less than 8.2% year-on-year.

China Communications Construction, which operates steadily, attaches great importance to shareholder returns. Since its listing in 2006, the company has implemented cash dividends every year. As of 2023, the cumulative cash dividends have exceeded 50.674 billion yuan (including tax). The cash dividend (including tax) per 10 shares distributed to all shareholders has increased from 0.88 yuan to 2.93 yuan, and the annual total cash dividend (including tax) has increased from 1.305 billion yuan to 4.762 billion yuan. From 2021 to 2023, the controlling shareholder has accumulated approximately 297 million shares of the company's H shares with its own funds.

● Yangtze Business Daily reporter Xu Yang

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