China Construction International is continuously “upgrading quality to new”, and is a promoter and practitioner of developing new quality productivity.
On April 26, China Construction International (3311.HK) released unaudited financial data and operating conditions for the first quarter of 2024. The Group's unaudited Group turnover and the joint venture turnover for the quarter were approximately HK$24.166 billion and HK$608 million respectively; the total unaudited operating profit and profit attributable to the joint venture amounted to approximately HK$3,912 million.
The global economy is in an uncertain environment, and China Construction International still maintains its strategic strength and continues to achieve high-quality development at the management level. As reflected in this financial report, there are three highlights worthy of market attention:
First, China Construction International's core performance data is growing strongly. In particular, the profit level is being released at an accelerated pace, driving a significant increase in profitability.
Second, the amount of new orders signed was HK$80.9 billion, and the total amount of outstanding orders from China Construction International was HK$394.95 billion. Based on the boom shown by the Hong Kong and Macau markets, the company's new orders are expected to continue to grow.
Third, the amount of new contracts signed in the technology-driven category increased by more than 490% year-on-year, and accelerated rapidly. Coupled with the completion of “long term change and short term” and entering the harvest period, there are no long-term projects of more than 5 years for new investment-driven contracts. Jointly promoting the continuous optimization of the new order structure, the company's operations are becoming healthier.
From this, we can clarify the fact that China Construction International is one of the few high-quality listed companies in the Hong Kong stock market that continue to deliver value.
Looking back at the first quarter of this year, China Construction International is still rooted in Hong Kong and Macau, while seizing the broad development space of the mainland market, adhering to the strategy of technological empowerment, and continuously achieving results.
To create new quality productivity, MiC development is full of certainty
At this year's two conferences, new quality productivity became a hot topic. The definition of new quality productivity is how in traditional industries, it is born through revolutionary technological breakthroughs, innovative allocation of production factors, and deep industrial transformation and upgrading. As can be seen in the latest report of the State Assets Administration Commission, China Construction International is the core force that accelerates the formation of new quality productivity and promotes the high-quality development of the Chinese economy.
Judging from the development path of China Construction International, it is undoubtedly a “new quality productivity” enterprise in the industry, and it has also brought long-term certainty to performance growth.
According to information, China Construction International China Construction Hailong took the lead in undertaking “research and application of key technologies for modular integrated building construction” this year. As the “14th Five-Year Plan” national key research and development plan, the project results will comprehensively raise the technical level of modular integrated construction in China, accelerate the upgrading of the industrial chain through engineering demonstration, and provide high-standard solutions for construction industrialization.
China Construction International is keenly understanding market needs, actively expanding technological boundaries with a “pioneer” attitude, and leading the development of the industry.
Through technological innovation, China Construction International is leading the optimization and upgrading of MiC products. Take the police apartment project on the site of the former vehicle administration office in Futian District, which recently won the bid. Compared with the MiC technology used in the Huazhang new construction project, the degree of integration of the former has been improved across the board, and costs have been further reduced by optimizing the mold and shear wall structure.
Overall, the latest technology has improved markedly in terms of integration, product standardization, durability, comfort, safety and economy, and as a result, the company's core competitiveness has been further enhanced.
Specifically, in terms of the marketization of MiC products, in the first quarter of this year, the company won the bid for the Qingdao Optoelectronics Industrial Park employee dormitory project, which is the first high-rise concrete MiC project in Shandong Province and the first MiC project in Qingdao. Among them, the high-rise concrete MiC+1 year construction period used is already a balanced and mature solution, which is well recognized by the owners.
As can be seen, China Construction International is actively embracing Mic. Based on the strong demonstration effect already formed, the technology has been continuously promoted and applied in the mainland China market, and the number of new contracts signed in the mainland has continued to increase.
Facing the huge development prospects behind MiC in the future, as a leader in the 4.0 era of prefabricated buildings, China Construction International China Construction Hailong has accelerated the expansion of the Longgang Intelligent Construction Industrial Park to meet the gradually burgeoning market demand of MiC.
The park will establish a world-class MiC new construction technology innovation production base with a layout of 211,000 square meters and the Hong Kong Construction Industry Council to build a MiC professional training base of about 3,000 square meters, build the first multi-layer three-dimensional production line 4.0 system in China, and build the world's first intelligent construction “lighthouse factory” integrating digital manufacturing, automated production testing, and technology.
As China Construction International continues to promote the industrialization and upgrading of new buildings and accelerate the green and low-carbon construction industry, the company will also seize more growth opportunities in the high-quality development of the mainland China market.
Hong Kong and Macau continue to make breakthroughs in environmental protection, empowered by technologyLeading the edge of advanced construction
In the first quarter of this year, China Construction International successfully won the bid for the Hong Kong New Territories West Landfill Expansion Project (hereinafter referred to as “WENTX”). The total contract amount for the project reached HK$61.1 billion, setting the record for the largest contract amount in the company's history.
After completion, the project is expected to provide about 76 million cubic meters of landfill capacity, treat about 10,000 tons of solid waste daily, meet Hong Kong's waste disposal needs for decades to come, and provide critical infrastructure support for urban construction and population growth in the “Northern Metropolitan Area”.
According to government documents, the WENTX project uses a design-build-operation model (i.e. DBO model). The details include site leveling; drainage channel diversion and preparation works; installation of anti-seep layer systems; installation of seepage-rate sewage collection, treatment and disposal systems; formulation of environmental impact mitigation measures and environmental monitoring and review; and rehabilitation and post-restoration care projects.
This is not only important for enhancing the company's competitiveness in the field of environmental protection engineering and exploring green and low-carbon development paths in the future, but also reflects the company's value and contribution in the field of environmental protection. Relying on its technical advantages in the field of environmental protection engineering, especially the application of technologies such as carbon reduction during construction, the company has also demonstrated strong scientific and technological strength.
China Construction International's ability to achieve another breakthrough in the field of environmental protection is inseparable from its deep accumulation in environmental protection projects and related technologies in the past.
For example, China Construction International built the Wanghoushi Sewage Treatment Plant, which won the 2017 Luban Award for National Quality Project; built the Sham Tseng Sewage Treatment Plant; built the Tai Po Water Treatment Plant and expansion project for its water flow facilities; and designed, built, and operated the Tseung Kwan O Seawater Desalination Plant. The second phase of the Hong Kong Organic Resource Recycling Centre (O·PARK2), which the company recently built, will be the largest food waste recycling center in Hong Kong after completion, and will also be the first carbon-neutral project during construction in China.
WENTX's bid marks that the company has achieved a new milestone in the key technical fields of construction and operation of environmental protection projects, while also achieving significant results and breakthroughs in the environmental protection market. The company has set the WENTX project as a benchmark for low-carbon construction and industrial operation, and is providing solid infrastructure guarantees for key development projects such as the “Northern Metropolitan Area”. The company will also continue to serve Hong Kong people's livelihood, promote the integration of the Guangdong-Hong Kong-Macao Greater Bay Area, and enhance Hong Kong's core competitiveness internationally.
Finale:
“Finding an undervalued company is not the only criterion; it also depends on stock fundamentals to determine whether a company is excellent.” This kind of investment logic says that before making a judgment on a company, it is necessary to see the real potential value of the company from behind complicated financial data.
For example, seeing that China Construction International has achieved growth in performance and that its operations are becoming healthier. What is actually reflected in this is that China Construction International has strong strength to adhere to the technology empowerment strategy.
At present, vigorously developing new quality productivity has become the only way, and China Construction International is continuously “upgrading quality to new” to become a promoter and practitioner of the development of new quality productivity. As a result, China Construction International may be able to demonstrate the ability to cross the cycle and achieve sustainable high-quality development in the future.