The Zhitong Finance App learned that Bank of China International released a research report stating that it maintains China Railway Construction (01186)'s “buy” rating and believes that it may benefit from the ongoing project refinancing bond program with a target price of HK$9.09 in terms of new orders and cash returns.
According to the report, the company's revenue last year increased 3.8% year on year, and net profit fell 2%. Although revenue was in line with expectations, net profit was still slightly lower than the bank's and market forecasts. The low profit was mainly affected by higher-than-expected financial costs and impairment losses on financial assets. The amount of new contracts signed by the company last year was RMB 3293.87 trillion. Due to the high base for the same period in 2022 and the recent tight local government budget, the year-on-year increase was only 1.5%.