1、 See the last page for disclaimer Page 1 of 21 Equity Research Equity Research Report Company Report 股股票票研研究究 公公司司报报告告 证证券券研研究究报报告告 基建行业基建行业 Infrastructure Sector 中国建筑兴业中国建筑兴业 CSC Development(00830 HK)Company Report:CSC Development(00830 HK)Gary Wong 黄家玮(852)2509 2616 公司报告：中国建筑兴业(00830 HK).hk 2 Sept

2、ember 2022 Global Leader in High-End Curtain Wall Engineering,Initiate with Buy 高端幕墙工程的世界级领导者,首予“买入”评级 Rating and TP:We initiate with a rating of Buy and a target price of HK$2.66,representing 9.3x/6.6x/4.6x 2022/2023/2024 EV/EBITDA.Investment Theme:We expect that the HKSAR government will significa

3、ntly increase spending on public buildings in the next five years,driving demand for high-end curtain walls.Being the only high-end curtain wall engineering company with central SOE background in China,it is much easier for the Company to obtain new contracts in the Greater Bay Area compared with it

4、s peers.In addition,the Companys BIPV business will be a long-lasting revenue growth driver.Our Views:1)The market thinks the high-end curtain wall market is saturated;we think that there is still substantial room to grow.2)High-end curtain wall market competition is not as keen as the market thinks

5、.3)Potential new contracts from COLI(00688 HK)are highly underestimated by the market.Catalysts:1)Loss from overseas markets will quickly narrow.2)Receipt of first-ever BIPV contracts worth HK$101 million.3)Placement of new shares at premium price showed market confidence.Risks:1)New contracts from

6、the public sector in Hong Kong might not meet expectations.2)Epidemic prevention measures might delay spending in new resort facilities in Macau.3)Change in supporting policies for BIPV projects might delay demand.评级及目标价：首次评级及目标价：首次覆盖覆盖给予给予“买入买入”评级，目标价评级，目标价 2.66 港元，相当于港元，相当于 9.3 倍倍/6.6 倍倍/4.6倍倍 202

7、2/2023/2024 年年 EV/EBITDA。投资故事：投资故事：我们预计未来五年香港特区政府将大幅增加公共建筑支出，推动对高端幕墙的需求。作为国内唯一一家央企背景的高端幕墙工程公司，公司在大湾区较同业更容易获得新合同。此外，公司的光伏建筑（BIPV）业务将成为收入的长期增长动力。我们的观点：我们的观点：1）市场认为高端幕墙市场已经饱和，但我们认为仍有较大的增长空间。2）高端幕墙市场竞争并没有市场想象的那么激烈。3）来自中国海外发展（00688 HK）的潜在新合约被市场高度低估。催化剂：催化剂：1）海外市场亏损将迅速收窄。2）首次获得价值 1.01 亿港元的光伏建筑工程合同。3）溢价配售新

8、股显示市场对公司的信心。风险：风险：1）香港公共部门的新合同可能不如预期。2）防疫措施变动可能导致澳门新度假村设施的投资延迟。3）光伏建筑项目支持政策的变化或使需求延后。Rating:Buy Initial 评级：买入买入(首次覆盖)6-18m TP 目标价:HK$2.66 Share price 股价:HK$2.110 Stock performance 股价表现 Change in Share Price 股价变动 1 M 1 个月 3 M 3 个月 1 Y 1 年 Abs.%绝对变动%1.0 (2.8)17.2 Rel.%to HS Index 相对恒指变动%2.6 5.3 43.0 A

9、vg.Share price(HK$)平均股价（港元）2.1 2.2 2.0 Source:Bloomberg,Guotai Junan International.Table_Year End Turnover Net Profit EPS EPS PER BPS PBR DPS Yield ROE 年结 收入 股东净利 每股净利 每股净利变动 市盈率 每股净资产 市净率 每股股息 股息率 净资产收益率 12/31(RMB m)(RMB m)(RMB)(%)(x)(RMB)(x)(RMB)(%)(%)2020A 4,536 194 0.090 11.1 19.7 0.651 2.7 0.03

10、0 1.7 15.4 2021A 6,295 292 0.135 50.0 12.7 0.775 2.2 0.047 2.7 19.0 2022F 8,625 416 0.189 40.0 9.8 1.000 1.8 0.063 3.4 21.5 2023F 11,460 607 0.269 42.3 6.9 1.185 1.6 0.090 4.9 24.9 2024F 14,913 863 0.382 42.0 4.8 1.478 1.2 0.127 6.9 28.7 Shares in issue(m)总股数(m)5,037.6 Major shareholder 大股东 CSCI 70.

11、8%Market cap.(HK$m)市值(HK$m)10,629.3 Free float(%)自由流通比率(%)29.2 3 month average vol.3 个月平均成交股数(000)2,867.5 FY22 Net gearing(%)FY22 净负债/股东资金(%)2.3 52 Weeks high/low(HK$)52 周高/低(HK$)2.490/1.530 FY22 Est.NAV(HK$)FY22 每股估值（港元）3.5 Source:the Company,Guotai Junan International.(40.0)(30.0)(20.0)(10.0)0.010

12、.020.030.040.0Sep-21Dec-21Mar-22Jun-22Sep-22%of returnHSI indexChina State Construction Dev Company Report See the last page for disclaimer Page 2 of 21 2 September 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)TABLE OF CONTENTS 1.Core Ideas.3 2.Company Introduction.

13、4 2.1 Company Background.4 2.2 Business Model.5 2.3 Competitive Advantage.6 2.4 Business Strategy.7 3.Key Points the Market Has Overlooked.8 3.1 The High-End Curtain Wall Market Still Has Substantial Room for Growth.8 3.2 High-End Curtain Wall Market Competition is Not as Keen as the Market Thinks.9

14、 3.3 Potential New Contracts from COLI(00688 HK)are Highly Underestimated.10 4.Core Investment Logic.10 4.1 The HKSAR Government is Going to Significantly Increase Spending on Buildings.10 4.2 The Only Central SOE Background High-End Curtain Wall Engineering Company.11 4.3 BIPV Business Is a Long-La

15、sting Growth Driver.11 5.Catalysts.12 5.1 Loss from Overseas Markets Will Quickly Narrow.12 5.2 Receipt of First-Ever BIPV Contracts Worth HK$101 Million.12 5.3 Placement of New Shares at Premium Price Showed Market Confidence.12 6.1H2022 Results Review.13 7.Earnings Forecasts and Investment Rating.

16、14 7.1 Earnings Forecasts.14 7.2 Valuation and Investment Rating.17 8.Risk Factors.19 Financial Statements and Ratios.20 2WUXXY0XYYtRtR8OaO9PnPpPpNnPjMqQwPjMmMmRbRpOpPwMmRtRwMsPxP Company Report See the last page for disclaimer Page 3 of 21 2 September 2022 CSC Development 中国建筑兴业(00830 HK)Table_Page

17、Header CSC Development(00830 HK)1.Core Ideas Earnings Forecasts&TP We forecast China State Construction Developments(00830 HK)(CSCD,or the Company)EPS for 2022/2023/2024 to be HK$0.189/HK$0.269/HK$0.382,respectively,which represents YoY growth of 39.3%/42.6%/42.1%.With valuation method using peers c

18、omparison for EV/EBITDA ratio,we arrive at a TP of HK$2.66 for CSCI,representing 9.3x/6.6x/4.6x 2022/2023/2024 EV/EBITDA.Initiate with Buy rating.Investment Theme 1.HKSAR government will significantly increase spending in buildings.2.The only high-end curtain wall engineering company with SOE backgr

19、ound in China.3.Building-integrated photovoltaics(BIPV)business is a long-lasting growth driver.Our Views 1.The high-end curtain wall market still has substantial room for growth despite contrasting market view.2.High-end curtain wall market competition is not as keen as the market thinks.3.Increase

20、 in potential new contracts from COLI(00688 HK)is highly underestimated by the market.Catalysts 1.Loss from overseas markets will quickly narrow.2.Receipt of first-ever BIPV contracts worth HK$101 million.3.Placement of new shares at premium price shows market confidence.Risk Factors 1.New contracts

21、 from the public sector in Hong Kong might not meet expectations.2.Epidemic prevention policies might delay spending in new resort facilities in Macau.3.Change in supporting policies for BIPV projects might delay demand.Company Report See the last page for disclaimer Page 4 of 21 2 September 2022 CS

22、C Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)2.Company Introduction 2.1 Company Background The Company is a global provider of one-stop building facade solutions.China State Construction Development Holdings Limited was established in Hong Kong in 1969 and has become one o

23、f the largest and most competitive curtain wall engineering companies in the world.In particular,the Companys market share in curtain walls in commercial buildings in Hong Kong is 30%-40%,and that in high-ended residential buildings in Hong Kong is 15%-25%,making it the largest company in terms of r

24、evenue,with the largest market share in curtain wall business in Hong Kong.Over the years,from its fundamental business in mainland China,Hong Kong and Macao,the Company has successfully entered into many overseas markets such as the UK,US,Canada,Dubai,Singapore,Japan,Australia and Chile,etc.,with i

25、ts business reaching 5 continents,11 countries and 43 cities,and has been involved in nearly 900 landmark buildings.The Companys customers are generally developers and main contractors of property development projects worldwide.A number of international developers and main contractors have included

26、CSCD in their lists of preferred building facade solutions providers.Figure 1:Times Square in Hong Kong Figure 2:Venetian Hotel in Macau Source:the Company.Source:the Company.Figure 3:History and Milestones of CSCD Source:the Company.Company Report See the last page for disclaimer Page 5 of 21 2 Sep

27、tember 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)Figure 4:Shareholding Structure of CSCD Source:the Company.2.2 Business Model CSCD provides customers with integrated building facade solutions that are customized to meet the technical specifications and performan

28、ce requirements of projects.As a one-stop building facade solutions provider,CSCDs services range from the initial design of the building facade system,procurement of materials,fabrication and assembly of the building facade products,performance testing,installation of the products at the constructi

29、on sites,to after-sales services.The Companys key products include curtain walls,glass walls and window walls,while the technical features of which vary from project to project are based on its customers needs and specifications.Its building facade solutions are mainly applied to residential propert

30、ies,commercial buildings,shopping centers,hotels,casinos and condominiums.Figure 5:Business Workflow of CSCD Source:the Company.China State ConstructionEngineering Corporation Limited(601668CN)China Overseas Holding LimitedChina Overseas Land&Investment Limited(00688 HK)China Overseas Grand Oceans G

31、roup Limited(00081 HK)China State Construction International Holdings Limited(03311 HK)China State Construction Development Holdings Limited(00830 HK)China Overseas Property Holdings Limited(02669 HK)100%64.8%70.8%38.3%56.0%61.2%Company Report See the last page for disclaimer Page 6 of 21 2 Septembe

32、r 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)2.3 Competitive Advantage The Company is arguably the most experienced and reputable facade solutions provider in the world.The Company,first established in 1969,is arguably the most experienced and reputable solutions

33、provider in building facade solutions in the world.The projects it has completed or is going to complete include the Burj Khalifa in Dubai,the highest building in the world,with its super high-rise building curtain wall technology;the Murray Road Tower in Hong Kong,the most complicated project in th

34、e world with special-shaped hyperboloid unit curtain wall technology;the Shenzhen International Hotel in Shenzhen,the fastest in the world with internal installed window-wall system and MiC technology;and the Apple Store in Macau,the best quality in the world with unsupported large glass curtain wal

35、l technology.The Companys over 50 years of experience and worldwide exposure to the most difficult and sophisticated projects in the world has earned it unmatched reputation over its competitors.The Company has unmatched core technology advantages over its competitors helping to obtain high-end proj

36、ects.The Company is equipped with 5 curtain wall design institutes in Hong Kong,mainland China and North America,and has a huge lineup of expert design teams of nearly 500 people.After years of research and development and practice,the Company currently owns six core technologies,including super hig

37、h-rise glass curtain wall technology,hyperbolic special-shaped complex curtain wall technology,double-layer breathing curtain wall technology,explosion-proof curtain wall technology,fire-proof curtain wall technology,and passive curtain wall technology.Among them,super high-rise glass curtain wall t

38、echnology was used in the construction of the Burj Khalifa in Dubai,with a total height of 828 meters and a standard value of curtain wall wind pressure of 5.5 kPa,equivalent to a wind speed of 342 km/h,and is higher than the maximum wind pressure of the No.10 typhoon warning category in Hong Kong(3

39、.84 kPa,about 238 km/h wind speed).In addition,the Hong Kong Murray Road project,as the first hyperbolic special-shaped curtain wall building,has a complex shape and a total of 2,200 wall units,of which 40%are single-arc units,20%are hyperbolic units,while the largest hyperbolic glass is 2 meters wi

40、de and 5 meters high.The processing technology involves pulling,bending and twisting;a standard technology is not yet mature in the entire industry,while production and processing face huge challenges.To solve this,the Company has built the only curtain wall bending workshop in China that deals with

41、 complex profile bending technology to ensure the production and processing of the project.Owning this core technology and know-how ensures that the Company has a huge advantage in winning high-ended projects over its competitors.Figure 6:Murray Road Tower in Hong Kong Figure 7:Burj Khalifah Tower i

42、n Dubai Source:the Company.Source:the Company.Strong operating synergy and support from controlling shareholder CSCI.After China State Construction International(CSCI,03311 HK)acquired CSCDs predecessor,Far East Global,CSCI introduced the industry-leading management system of China Construction Grou

43、p into CSCD to assist it in its automation,informatization and intelligent transformation,which greatly improved CSCDs operational efficiency.Moreover,CSCI has reorganized CSCDs upstream supplier processes and relationships,enabling the Company to obtain better and more stable supply of raw material

44、s at more favorable prices.For business development,being the largest construction engineering contracting company with the highest market share in Hong Kong and Macau markets,CSCI has a very important role in assisting CSCD to obtain more,larger,and better-quality new contracts.For example,in Febru

45、ary 2021,CSCI received a general contract for the construction of the Macau Galaxy Entertainment Hotel Phase 4 project worth HK$12.6 billion,then in June 2022 CSCD announced that it had won the subcontracting construction contract for the curtain wall project of the Galaxy Entertainment Hotel Phase

46、4 project,worth as much as HK$2.24 billion,the largest single curtain wall project contract in the Companys history.We expect that this cooperation model,of CSCI obtaining general contracts and CSCD obtaining subcontracting contracts,will continue in the future,which will Company Report See the last

47、 page for disclaimer Page 7 of 21 2 September 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)not only increase the Companys profitability,but also its operating cash flow,as CSCI is unlikely to delay payments to CSCD as other general contractors might do.Figure 8:Work

48、ing Meeting in Zhuhai Office Figure 9:Galaxy Phase 4 Project in Macau Source:the Company.Source:the Company.2.4 Business Strategy The Company is implementing the business strategy of expanding the Hong Kong and Macau market,entering the mainland market,shrinking overseas markets,and focusing on the

49、high-ended market.Despite overseas markets such as North America having contributed significantly in terms of revenue,they have loss-making due to low contract prices and high selling and administrative expenses.Starting three years ago,the Company decided to gradually pull out from such loss making

50、 overseas markets and reallocate those resources to Hong Kong and Macau markets,in which profit margin and cash flow are stable and the Company has a strong reputation.This is also helped by increasing facade spending by residential property developers alongside an increase in property prices,and by

51、 the Hong Kong government in public facilities such as hospitals.In addition,the Company is seeing new opportunities in high-end markets in commercial buildings and flagship retail stores such as Apple Stores(constructed 36 Apple Stores projects in Hong Kong,Macau and mainland China)and Huawei Store

52、s in mainland China,in which demand has not been significant until the last couple of years.The Company is aware that relying on its unmatched experience,expertise and reputation,its only viable strategy is to focus on the high-end market,in which customers tend not to be price sensitive and quality

53、,in which the Company has a huge advantage in,is the highest priority.The Companys leading technology strategy continues to reshape the industry with the introduction of new technologies such as MiC and BIPV.The Companys Shenzhen International Hotel project was the first to adopt the push-in window

54、wall system in high-rise buildings;the design,processing and installation of nearly 140,000 m2 of curtain walls was completed in 144 days.The Companys push-in window and wall system uses information-based design,and automated production and modular installation procedure.Its production staff for cur

55、tain wall parts was reduced by 70%compared to traditional methods,while the external wall installation was also carried out simultaneously with the construction of the main building,which greatly reduced construction time.In addition,the Company actively deploys BIPV technology to promote the low-ca

56、rbon development of curtain wall products.On 27 September 2021,the Company reached a strategic cooperation agreement with Advanced Solar Power(Hangzhou)Inc.(ASOP),the leader in cadmium telluride technology.ASOP was established in May 2008 and its first fully automatic cadmium telluride module produc

57、tion line with completely independent intellectual property rights was put into operation in 2011.Moreover,all ASOPs photovoltaic manufacturing equipment has been localized,and all raw materials are sourced from China.This not only greatly reduces the manufacturing cost of cadmium telluride componen

58、ts,but also ensure that the core technology and raw materials are not controlled by foreign countries.CSCD has completed the research and development of the first batch of BIPV curtain wall products,which can be adapted to various formats such as hospitals,schools,residential buildings,and commercia

59、l buildings,and its photoelectric conversion efficiency can reach as high as 15%;one of the very few companies that have a practical facade BIPV product in China.The Company continues to develop and utilize advanced technology to create new markets for its solutions.Company Report See the last page

60、for disclaimer Page 8 of 21 2 September 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)Figure 10:Strategic Cooperation Between CSCD&ASOP Figure 11:Proposed BIPV Transformation for the Production Facility in Zhuhai Source:the Company.Source:the Company.Figure 12:Shenzh

61、en International Hotel Project Figure 13:Proposed BIPV Renewal Project(LHS is Before Renewal and RHS is After Renewal)Source:the Company.Source:the Company.3.Key Points the Market Has Overlooked 3.1 The High-End Curtain Wall Market Still Has Substantial Room for Growth Contrary to the markets impres

62、sion,the curtain wall engineering market has actually maintained steady growth even when the real estate market appears to be sluggish.Taking Hong Kong as an example,despite impact from the Covid pandemic,construction spending for residential properties and commercial properties has remained stable

63、and hasnt decreased in the past five years.With recovery of global economies,residential and commercial construction expenditures will maintain moderate growth in the next five years and will drive spending on curtain wall projects to increase steadily.In addition,according to the 2021 policy addres

64、s,the HKSAR government will continue to expand infrastructure-related investment,and the scale will reach more than HK$100 billion per year,and the government will allocate more resources to building facilities such as hospitals,public housing and integrated public buildings,which will drive demand

65、for curtain wall works to increase significantly.Moreover,there will also be new opportunities for high-end curtain walls in Macau business.As Macau gaming licenses expire at the end of this year and is about to be reissued,and in order to welcome the increase in tourists after relaxation of border

66、restrictions,major casino resort hotels(such as Phase IV of Galaxy Macau resort,The construction projects of MGM Phase II,Wynn,etc.)will be launched one after another,which will greatly increase demand for high-end curtain wall projects in the next 3-5 years.In addition,even though the real estate m

67、arket in mainland China has been sluggish over the past two years,high-end curtain wall projects for commercial flagship stores(such as Apple Stores and Huawei Stores)and high-end residential buildings have actually continued unabated,as owners focus their resources on customers with more spending p

68、ower who prefer high-end facilities.We think there is still substantial room for growth in demand for high-end curtain walls in cities in the Greater Bay Area such as Hong Kong and Macau,over the next five years.Company Report See the last page for disclaimer Page 9 of 21 2 September 2022 CSC Develo

69、pment 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)Figure 14:Annual Curtain Wall Spending in Hong Kong Figure 15:Annual Curtain Wall Spending in China Source:the Company.Source:the Company.3.2 High-End Curtain Wall Market Competition is Not as Keen as the Market Thinks The entry barrier

70、 to the high-end curtain wall engineering market is actually very high;many competitors have actually exited the market.In addition to high requirements for hard quality traits such as experience and technology,soft quality traits such as brand,shareholders background and financial status are also i

71、mportant factors for customers to consider.With more than 50 years of experience in curtain wall engineering projects and undertaking the most difficult engineering projects around the world,the Companys hard quality traits and brand are unquestionable,coupled with the industry status of its control

72、ling shareholder as CSCI(03311 HK)and its ultimate controlling shareholder CSCEC(601668 CH),while its own status as a medium-sized engineering listed company,its shareholder background and financial position far exceed most of its competitors in the market.According to newly signed contract data of

73、major companies in the Hong Kong curtain wall engineering market in 2021,total newly signed contract value of the top ten curtain wall engineering companies was about HK$8.1 billion,of which the Company accounted for HK$4.2 billion,more than the sum of all others combined.The Companys strong competi

74、tiveness in brand,technology and shareholders background screens it out from strong competition in the high-end curtain wall market.Figure 16:CSCDs Market Share in the Residential Property Market in Hong Kong in 2021 Figure 17:CSCDs Market Share in the Commercial Property Market in Hong Kong in 2021

75、 Source:the Company.Source:the Company.0552020A2021E2022E2023E2024E2025EResidential PropertiesCommercial PropertiesPublic FacilitiesHKD bn005006007002020A2021E2022E2023E2024E2025EChina Curtain Wall MarketRMB bnCSCD20%-30%Other CompaniesCSCD30%-40%Other Companies Company Report

76、See the last page for disclaimer Page 10 of 21 2 September 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)Figure 18:New Contracts Value for Curtain Wall Projects in Hong Kong in 2021 Source:the Company.3.3 Potential New Contracts from COLI(00688 HK)are Highly Underest

77、imated As one of the largest property developers in China,the affiliated China Overseas Land Investment(COLI,00688 HK)completed projects in the Greater Bay Area with an area of 2.983 million m2 in 2021 alone,of which Guangzhou and Shenzhen accounted for 67.5%of the total.If we conservatively assume

78、that construction and installation cost of Guangzhou and Shenzhen properties is RMB10,000/m2 and other areas are RMB5,000/m2,and curtain walls on average accounts for 15%of total construction and installation cost,the potential business in curtain wall contributed by COLI in the Greater Bay Area alo

79、ne will be as high as RMB3.75 billion,excluding any commercial projects in the Greater Bay Area and any projects in other regions of mainland China.With the gradual increase in new business from COLI due to increase in demand for high-end curtain wall products compared with the past,we think the mar

80、ket has underestimated potential new contracts COLI can contribute to CSCD.Figure 19:Colis Residential Property Project One Blossom Cove in Guangzhou Figure 20:Colis Commercial Property Project Unipark Shopping Mall in Zhuhai Source:the Company.Source:the Company.4.Core Investment Logic 4.1 The HKSA

81、R Government is Going to Significantly Increase Spending on Buildings A higher proportion of infrastructure investment budget from the government will be allocated to public building construction compared with previous years.As the HKSAR government gradually increases infrastructure investment budge

82、t and has increased the proportion of investment in infrastructure facilities such as hospitals and complex buildings,the public curtain wall engineering market in Hong Kong will continue to grow fast.We expect the CAGR of the curtain wall engineering market for the public sector to reach 39.8%in 20

83、20-2025,compared to CAGR of only 9.5%for the overall curtain wall engineering market for the same period in Hong Kong.Since the governments budget for infrastructure projects is generally more flexible and generous than that of private enterprises,and the quality requirements are usually higher to 2

84、.3 2.4 2.5 3.0 3.7 5.0 5.0 5.0 10.0 42.0 01020304050ForerunnerYKKMillion HopePermasteelisaMidiApexJanghoWah TungChevalierCSCDHKD00 m Company Report See the last page for disclaimer Page 11 of 21 2 September 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)accommodate pu

85、blic interest,most government building projects use high-end curtain walls.As the undisputable leader of high-end curtain wall engineering in Hong Kong,the Company will fully benefit from the rapid growth of the new orders for curtain wall engineering projects from the government in the next five ye

86、ars.4.2 The Only Central SOE Background High-End Curtain Wall Engineering Company The Company is the only purely curtain wall engineering and construction company with its ultimate shareholder as a central SOE in China.Shareholders background,which represents reputation and financial capability,is o

87、f great significance to the development of the mainland China market.The Companys shareholder background with its controlling shareholder being CSCI(03311 HK)and ultimate controlling shareholder being CSCEC(601668 CH),a central SOE,is highly preferred to its clients as a sign of strong financial pos

88、ition,especially during economic downturns.In terms of the technology and know-how,with the exception of a few first-tier cities such as Shenzhen and Guangzhou,the level of technology of curtain wall engineering in the Greater Bay Area of the mainland is generally lower than that of Hong Kong.Howeve

89、r,with economic development and improvement in living standards,commercial flagship stores and high-end residential buildings continue to increase,driving demand for high-end curtain walls.Combining the strong background of its shareholders and technical advantage,the Company will not encounter stro

90、ng competition when it gradually develops in the Greater Bay Area market.Figure 21:Some of CSCDs Clients Figure 22:CSCDs Clients Structure in Mainland China Source:the Company.Source:the Company.4.3 BIPV Business Is a Long-Lasting Growth Driver The Company has strong technology reserve in BIPV and a

91、 long-term business plan to monetize it.BIPV is an application method in which solar photovoltaic materials are used to replace traditional building materials,so that the building itself becomes a large energy source without the need for additional solar panels.Because it is considered at the design

92、 stage,the ratio of power generation rate to cost is the best,and the outer wall is usually the largest light receiving surface.A green building can supply part or all of the buildings electricity,and existing buildings may also be retrofitted to become BIPV buildings.Since the price of solar panels

93、 can be amortized into the original building material it replaces,the cost of using solar energy is reduced.And incorporating solar energy in the design stage can increase the light receiving rate and have aesthetic benefits.According to a media interview with JinkoSolar,one of the largest solar pro

94、ducts providers in China,domestic BIPV products are currently aimed at industrial and commercial roofs and commercial building curtain walls,while for new factory buildings,it must be installed.According to JinkoSolar,annual industrial and commercial potential roof area completed is 1.23 billion m2,

95、while current BIPV penetration rate is less than 0.5%.As a global player in curtain wall engineering projects while having strategic cooperation with the leading domestic BIPV products provider,ASOP,is poised to take advantage of the growth potential of such exponentially growing market.China Enterp

96、rise Clients,7%Public Sector Clients,17%Foreign Enterprise Clients,76%Company Report See the last page for disclaimer Page 12 of 21 2 September 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)Figure 23:Uses of BIPV Technologies Figure 24:Estimated BIPV Market Structure

97、 in China in 2020 Source:Researchgate.Source:QuestMobile,Guotai Junan International.5.Catalysts 5.1 Loss from Overseas Markets Will Quickly Narrow The Company plans to pull out of the North American market which has generated significant losses over the past 5 years.The North American market busines

98、s is mainly carried out through its predecessor,the Gamma Group,in which Far East Global acquired 55%interest in 2011 for US$28 million.However,according to the Companys annual report,Gamma Groups performance over the past five years was sluggish,suffering losses every year with average loss reachin

99、g HK$124 million,equivalent to annual loss attributable to the Companys shareholders of HK$68 million,causing significant negative impact on the Companys financial performance.The Company plans to withdraw from the North America market after completing the backlog;it will not undertake new contracts

100、 and will concentrate resources to develop Hong Kong and Macau markets.This will have significant positive impact on the Companys financial performance.5.2 Receipt of First-Ever BIPV Contracts Worth HK$101 Million The Company was awarded the first-ever deployment of BIPV facade project in China.On 2

101、5 July 2022,the Company was awarded a contract for the supply and installation of facade and BIPV systems for the commercial development at Laixi Qingbei Hi-Tech Park,Shandong Province,China,at a contract sum of approximately HK$101 million.This is the first of its kind contract in BIPV facade proje

102、ct in China,showing the Companys recognition in reputation and technology.The Company originally didnt expect significant new contracts of BIPV before 2025,and the award of such contract shows that market demand is higher than expectation,and significant new contracts might come earlier than expecta

103、tion.5.3 Placement of New Shares at Premium Price Showed Market Confidence On June 20,the Company placed 100 million new shares to institutional investors at a price of HK$2.20 per share,at 1.9%premium to the last closing price.We think that in addition to obtaining new funds for further development

104、,the placement can also improve its lack of market liquidity and attract the attention of market funds,which will facilitate the development of possible further financing plans in the future.Moreover,the Company announced on 24 May 2022,that it entered into its first three-year unsecured green revol

105、ving loan facility of HK$300 million with China Construction Bank(HK).The Company intends to use the proceeds from the facility to finance a number of eligible green projects under its green finance framework.The Company has completed a high amount of debt and equity financing within a short period

106、of time,reflecting the markets high recognition of the Companys business capabilities and profitability,which can help improve its valuation level.Factories53.0%Residential Properties18.9%Commercial Properties15.2%Schools&Hospitals6.6%Warehouses1.1%Sports Centers&Stadiums1.4%Others3.8%Company Report

107、 See the last page for disclaimer Page 13 of 21 2 September 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)Figure 25:Total Comprehensive Loss of Gamma Group Figure 26:Award of BIPV Technology for ASOP in 2021 Source:the Company.Source:the Company.6.1H2022 Results Revi

108、ew CSCDs shareholders net profit increased 42.5%YoY to HK$322 million in 1H2022;results were in line with expectation.CSCDs revenue increased 40.8%YoY to HK$3,806 million,mainly driven by the fast increase in facade contracting works revenue,which increased 56.5%YoY to HK$2,899 million.Overall gross

109、 margin stayed flat at 14.1%,despite a significant increase in gross margin for facade contracting works business by 3.7 ppts YoY to 13.4%,due to a higher proportion of revenue contribution from higher-end facade contracting projects in Hong Kong;the increase was offset by the decrease in gross marg

110、in of general contracting works and operating management,which were negatively impacted by the poor performance in the North American market and increase in coal prices for its thermoelectric plant.During 1H2021,the Company received a record level of new contracts amounting to HK$6,009 million,while

111、 total backlog amounted to HK$13,013 million as at 30 June 2022.Going forward,the Company will allocate more resources to Hong Kong and Macau markets to boost revenue,and push forward research and business development in BIPV projects.Figure 27:CSCDs Revenue Structure in 1H2022 Figure 28:CSCDs Gross

112、 Profit Structure in 1H2022 Source:the Company.Source:the Company.-200-180-160-140-120-100-80-60-40-2002017A2018A2019A2020A2021ATotal Comprehensive LossHKD mFacade Contracting Works76.2%General Contracting Works8.0%Operating Management15.8%Facade Contracting Works72.5%General Contracting Works0.9%Op

113、erating Management26.6%Company Report See the last page for disclaimer Page 14 of 21 2 September 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)Figure 29:CSCD New Contracts Received in 1H2022 Figure 30:CSCDs Backlog as at 30 June 2022 Source:the Company.Source:the Com

114、pany.7.Earnings Forecasts and Investment Rating 7.1 Earnings Forecasts We expect CSCDs total revenue in 2022-2024 to increase 37.0%YoY,32.9%YoY and 30.1%YoY,respectively,to HK$8,625 million,HK$11,460 million and HK$14,913 million,at a CAGR of 33.3%.Our revenue forecasts are mainly based on the follo

115、wing:1)We expect facade contracting works revenue to increase at a CAGR of 41.5%in 2021-2024.Facade contracting works revenue benefits from increasing new contracts from the public sector in Hong Kong,new resort facilities in Macau and residential properties and commercial properties developed by CO

116、LI in mainland China,and is expected to increase by 50%YoY,40%YoY and 35%YoY,respectively,to HK$6,717 million,HK$9,404 million and HK$12,695 million,in 2022-2024.2)We expect general contracting works revenue to increase at a CAGR of 5.0%in 2021-2024.The Company derived approximately 65%of general co

117、ntracting works revenue from the North American market in 2021,and it plans to gradually pull out from such market due to low gross margin and high administrative costs.With a backlog of HK$2.0 billion as at 30 June 2022,even if the Company does not receive new orders from such market,it will take t

118、he Company at least 3 years to complete the backlog.In addition,there are still new orders for other markets to be received each year for general contracting works.Hence,we expect revenue to still post mild growth in 2022-2024 to complete the backlog as soon as possible,and expect general contractin

119、g works revenue to increase by 5%in each year of 2022-2024,to HK$847 million,HK$889 million and HK$934 million,respectively.3)We expect operating management revenue to increase at a CAGR of 8.3%in 2021-2024.Operating management business mainly constitutes the supervision business,its thermoelectrici

120、ty operation and other investment projects.Considering that the businesses are relatively stable,we forecast operating management revenue to increase by 5%YoY,10%YoY and 10%YoY,respectively,to HK$1,061 million,HK$1,167 million and HK$1,283 million,in 2022-2024.Facade Contracting Works87.3%General Co

121、ntracting Works3.3%Operating Management9.4%Facade Contracting Works79.9%General Contracting Works15.2%Operating Management4.8%Company Report See the last page for disclaimer Page 15 of 21 2 September 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)Figure 31:CSCDs Reven

122、ue Structure in 2021 Figure 32:CSCDs Revenue Source:the Company,Guotai Junan International.Source:the Company,Guotai Junan International.Figure 33:CSCDs New Contracts Received in 2021 Figure 34:CSCDs Backlog as at 31 December 2021 Source:the Company.Source:the Company,Guotai Junan International.We e

123、xpect shareholders net profit in 2022-2024 to increase 39.3%YoY,42.6%YoY and 42.1%,respectively,to HK$416 million,HK$607 million and HK$863 million,at a CAGR of 43.5%.Our earnings forecasts are mainly based on the following:1)For gross profit margin,in 2022 we expect it to remain unchanged from that

124、 in 2021 at 10.8%,mainly due to expected increase in gross margin for facade contracting works business,with a higher revenue contribution from higher-gross-margin high-end curtain wall business,to be offset by the decrease in gross margin of general contracting works business in the North American

125、market,and by the increase in cost of coal of its thermoelectric plant of operating management business.We expect overall gross margin to increase to 11.2%in 2023 and 11.6%in 2024,due to increase in gross margins for facade contracting works business,and recovery in gross margin for operating manage

126、ment business.2)For selling and distribution expenses ratio,we expect it to decline from 4.4%in 2021 to 4.0%in 2022,and further to 3.7%in 2023 and 3.4%in 2024,due to cost savings for selling expenses with a contraction of business in the North American market,and economies of scale with continuous f

127、ast expansion in Hong Kong and Macau business.Facade Contracting Works71.1%General Contracting Works12.8%Operating Management16.0%02,0004,0006,0008,00010,00012,00014,0002020A2021A2022F2023F2024FFacade Contracting WorksGeneral Contracting WorksOperating ManagementHKD mFacade Contracting Works76.1%Gen

128、eral Contracting Works11.2%Operating Management12.7%Facade Contracting Works74.1%General Contracting Works20.1%Operating Management5.8%Company Report See the last page for disclaimer Page 16 of 21 2 September 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)Figure 35:CS

129、CDs Gross Profit in 2021 Figure 36:CSCDs Gross Profit Source:the Company.Source:the Company,Guotai Junan International.Figure 37:CSCDs Gross Margin Figure 38:CSCDs Costs of Sales in 2021 Source:the Company,Guotai Junan International.Source:the Company,Guotai Junan International.Figure 39:CSCDs Selli

130、ng&Distribution Expenses Ratio Figure 40:CSCDs ROA&ROE Source:the Company,Guotai Junan International.Source:the Company,Guotai Junan International.Facade Contracting Works52.6%General Contracting Works14.7%Operating Management32.7%02004006008001,0001,2001,4001,6002020A2021A2022F2023F2024FFacade Cont

131、racting WorksGeneral Contracting WorksOperating ManagementHKD m10.8%10.8%10.8%11.2%11.6%0.0%5.0%10.0%15.0%20.0%25.0%30.0%2020A2021A2022F2023F2024FFacade Contracting WorksGeneral Contracting WorksOperating ManagementOverallStaff Costs16.8%Depreciation2.8%Short-term Leases0.4%Materials Costs13.5%Subco

132、ntracting Costs&Others56.0%Costs of Supply of Heat,Steam and Electricity10.1%Warranty Provisions,Net0.3%0.0%1.0%2.0%3.0%4.0%5.0%6.0%2020A2021A2022F2023F2024FSG&A Expenses0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%2020A2021A2022F2023F2024FROAROE Company Report See the last page for disclaimer Page 17 of 2

133、1 2 September 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)Table 1:CSCDs Earnings Forecasts HKD mn 2020A 2021A 2022F 2023F 2024F Facade Contracting Works 2,565 4,478 6,717 9,404 12,695 General Contracting Works 1,055 807 847 889 934 Operating Management 916 1,010 1,

134、061 1,167 1,283 Total Revenue 4,536 6,295 8,625 11,460 14,913 YoY(1.8%)38.8%37.0%32.9%30.1%Gross Profit 488 677 931 1,281 1,728 Gross profit margin 10.8%10.8%10.8%11.2%11.6%Operating Profit 256 396 573 842 1,202 Operating profit margin 5.7%6.3%6.6%7.3%8.1%Shareholders net profit 194 292 416 607 863

135、Net profit margin 4.3%4.6%4.8%5.3%5.8%Basic EPS(HKD)0.090 0.135 0.189 0.269 0.382 DPS(HKD)0.030 0.047 0.063 0.090 0.127 Source:the Company,Guotai Junan International.7.2 Valuation and Investment Rating Initiate with Buy rating with a TP of HK$2.66.We expect the high-end curtain wall engineering busi

136、ness to grow rapidly as the Hong Kong government increases investment in hospitals and government complexes over the next few years,and the penetration rate of high-end curtain walls for residential and commercial buildings in the Greater Bay Area continues to increase.In addition,the Company recent

137、ly obtained its first facade BIPV project in the Chinese market,proving that its comprehensive strength in the BIPV market has been recognized.Considering the advantages of the Companys brand,technology and shareholder background,the companys development in high-end curtain wall projects and BIPV pr

138、ojects will outperform its peers,so the valuation should be worth a premium compared to its peers.We give the Company a target price of HK$2.66 based on relative valuation method,corresponding to 2022/2023/2024 EV/EBITDA of 9.3x/6.6x/4.6x.Initiate with Buy rating.Table 2:Peers Comparison Revenue and

139、 Shareholders Net Profit Companies Stock Market Revenue CAGR Shareholders Net Profit CAGR Code Cap 2019A 2020A 2021A 2018-2021 2019A 2020A 2021A 2019-21 China State Construction Dev 00830 HK 4,827 4,619 4,536 6,295 14.1%176 194 292 16.9%Million Hope Industries Hold 01897 HK 207 300 536 718 24.0%24 4

140、6 29 8.1%Jangho Group Co Ltd-A 601886 CH 10,095 18,805 18,050 20,789 9.0%353 948(1,003)N/A Zhejiang Yasha Decoration-A 002375 CH 6,727 10,786 10,787 12,076 9.5%426 317(888)N/A Weighted average 13,605 13,214 15,305 9.5%341 609(726)N/A Source:the Company,Guotai Junan International.Note:Only purely cur

141、tain wall engineering companies are included for comparison here.Table 3:Peers Comparison Gross Margin and Net Margin Companies Stock Market Gross Margin Net Margin Code Cap 2019A 2020A 2021A 2019A 2020A 2021A China State Construction Dev 00830 HK 4,827 11.8%10.8%10.8%3.8%4.3%4.6%Million Hope Indust

142、ries Hold 01897 HK 207 16.4%14.0%7.6%8.1%8.6%4.0%Jangho Group Co Ltd-A 601886 CH 10,095 18.4%18.3%17.2%1.9%5.3%(4.8%)Zhejiang Yasha Decoration-A 002375 CH 6,727 14.4%14.3%7.2%3.9%2.9%(7.4%)Weighted average 16.0%15.6%12.9%2.9%4.4%(3.8%)Source:the Company,Guotai Junan International.Note:Only purely cu

143、rtain wall engineering companies are included for comparison here.Company Report See the last page for disclaimer Page 18 of 21 2 September 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)Table 4:Peers Comparison-Valuation Company Stock Code Currency Last price Market

144、cap(mn)PE PB ROE(%)D/Y(%)EV/EBITDA 21A 22F 23F 24F 21A 22F 23F 24F 22F 22F 22F HK Listed Curtain Wall Related Engineering Companies China State Construction Dev 00830 HK HKD 2.110 4,759 15.6 11.1 8.1 5.7 2.7 2.3 1.8 1.4 20.6 3.0 7.2 China State Construction Int 03311 HK HKD 9.360 47,152 6.9 6.0 5.2

145、4.6 0.8 0.7 0.7 0.6 13.2 5.1 8.5 Sundart Holdings 01568 HK HKD 0.380 820 2.2 n.a.n.a.n.a.0.3 n.a.n.a.n.a.n.a.n.a.n.a.Million Hope Industries Hold 01897 HK HKD 0.490 205 5.4 8.2 n.a.n.a.0.4 0.4 n.a.n.a.4.5 6.2 6.1 Hanison Construction Holding 00896 HK HKD 1.140 1,260 4.5 8.1 n.a.n.a.0.3 0.3 n.a.n.a.3

146、.7 10.2 12.1 Yuanda China Holdings Ltd 02789 HK HKD 0.034 211 13.4 n.a.n.a.n.a.0.1 n.a.n.a.n.a.n.a.n.a.n.a.Changsha Broad Homes Indus-H 02163 HK HKD 7.970 3,886 10.1 6.0 6.7 n.a.0.8 0.7 0.7 1.0 2.6 n.a.9.8 Simple Average 8.3 7.9 6.7 5.2 0.8 0.9 1.0 1.0 8.9 6.1 8.7 Weighted Average 7.8 6.5 5.6 4.7 1.

147、0 0.9 0.8 0.7 12.9 5.0 8.6 China Listed Curtain Wall Related Engineering Companies Changjiang&Jinggong Buil-A 600496 CH CNY 4.070 8,192 11.9 9.6 8.1 7.0 1.1 1.0 0.9 0.8 10.5 1.0 6.9 Center International Group-A 603098 CH CNY 30.950 16,676 515.8 52.1 29.2 23.5 6.3 5.6 4.8 4.0 11.8 0.5 28.4 Suzhou Gol

148、d Mantis Constr-A 002081 CH CNY 5.040 13,383 n.a.6.7 6.0 6.0 1.2 1.0 0.9 0.8 15.6 2.5 3.5 China Fangda Group Co Ltd-A 000055 CH CNY 5.500 4,564 26.2 n.a.n.a.n.a.1.1 n.a.n.a.n.a.n.a.n.a.n.a.Jangho Group Co Ltd-A 601886 CH CNY 8.650 9,800 n.a.13.7 10.6 8.7 1.5 1.4 1.3 1.1 10.3 2.3 n.a.China State Cons

149、truction-A 601668 CH CNY 5.110 214,285 4.1 3.8 3.4 3.0 0.6 0.5 0.5 0.4 14.6 5.3 5.7 Zhejiang Yasha Decoration-A 002375 CH CNY 4.970 6,660 n.a.n.a.n.a.n.a.0.9 n.a.n.a.n.a.5.0 n.a.n.a.Simple Average 139.5 17.2 11.5 9.6 1.8 1.9 1.7 1.4 11.3 2.3 11.1 Weighted Average 39.8 7.5 5.6 4.8 1.1 0.9 0.8 0.7 14.

150、0 4.6 7.1 Overall Simple Average 56.0 12.5 9.7 8.4 1.3 1.4 1.4 1.3 10.2 4.0 9.8 Overall Weighted Average 34.2 7.4 5.6 4.8 1.0 0.9 0.8 0.7 13.8 4.7 7.3 Source:Bloomberg.Company Report See the last page for disclaimer Page 19 of 21 2 September 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC

151、Development(00830 HK)Figure 41:CSCDs Historical PER Graph Figure 42:CSCDs Historical PER Range Source:Bloomberg.Source:Bloomberg.8.Risk Factors 1.New contracts from the public sector in Hong Kong might not meet expectations.Although the HKSAR policy address proposed to continue to increase infrastru

152、cture investment,there is no rigid target for investment in buildings such as hospitals and complexes.In addition,the government has not rigidly stipulated that the relevant curtain walls must be constructed with high-end glass curtain walls.If the related spending is lower than expected,new contrac

153、ts from the public sector may be lower than expected.2.Change in epidemic prevention measures might delay spending in new resort facilities in Macau.We think that casino hotels are spending huge amounts of money to build new entertainment facilities in order to attract more tourists.If changes in ep

154、idemic prevention policy affects the customs clearance process,the number of customers visiting Macau will be reduced,and the desire of tourists to travel to Macau will be affected in the long run.From a demand perspective,it will delay timetables of owners for building new recreational facilities.F

155、rom the perspective of financing,the current reduction in cash flow of casino hotels and worse cash flow expectations for new projects will reduce the financing ability of owners and reduce the scale of their capital expenditures.3.Change in supporting policies for BIPV projects might delay demand.A

156、lthough BIPV is the trend of the times,it is not cost-effective in the short and medium term due to the technology still not being mature while market scale is still small.The popularization of related building applications is highly dependent on the promotion of government departments,including req

157、uiring a proportion of new governmental facilities to use BIPV technology,and encouraging the market to apply it through electricity subsidies.If support falls faster than expected,it will significantly reduce the demand for BIPV buildings.0.02.04.06.08.010.012.014.016.018.020.0Jan-18May-18Sep-18Jan

158、-19May-19Sep-19Jan-20May-20Sep-20Jan-21May-21Sep-21Jan-22May-22Sep-22(x)P/EAvg+1 S.D.+2 S.D.-2 S.D.26.316.211.96.915.317.613.26.25.84.45.011.320.411.78.35.410.914.50.05.010.015.020.025.030.02002020212022 YTD(x)maxminavg Company Report See the last page for disclaimer Page 20 of 21 2 Septe

159、mber 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)Financial Statements and Ratios Income Statement Year end 31 Dec(HKD m)2020A 2021A 2022F 2023F 2024F Total Revenue 4,536 6,295 8,625 11,460 14,913 Cost of Sales(4,047)(5,618)(7,693)(10,179)(13,185)Gross Profit 488 67

160、7 931 1,281 1,728 Investment and Other Income/Gains,Net 22 23 25 27 30 SG&A Expenses(222)(274)(345)(424)(507)Finance Costs(32)(30)(38)(42)(48)Operating Profit 256 396 573 842 1,202 Share of Profit of an Associate 0 0 0 0 0 Profit Before Tax 256 396 573 842 1,202 Income Tax(73)(112)(166)(244)(349)Pro

161、fit After Tax 183 284 407 598 854 Non-controlling Interest 11 8 9 10 9 Shareholders Profit/Loss 194 292 416 607 863 Basic EPS 0.090 0.135 0.189 0.269 0.382 DPS 0.030 0.047 0.063 0.090 0.127 Cash Flow Statement Year end 31 Dec(HKD m)2020A 2021A 2022F 2023F 2024F Profit Before Tax 256 396 573 842 1,20

162、2 Depreciation and Amortisation 15 20 24 26 27 Change in Working Capital 76(223)(245)(533)(658)Other Operating Activities 347 193 353 334 571 Cash from Operating Activities 321 185 294 227 389 Capital Expenditure(196)(228)(30)(30)(30)Other Investing Activities 18 48 5 5 6 Cash from Investing Activit

163、ies(179)(181)(25)(25)(24)Issuance/(Repurchase)of Shares 0 0 219 0 0 Issuance/(Repayment)of Debts 192 268 91 100 109 Drawdown/(Repayment)of Related Parties Loans(245)(62)0 0 0 Dividends 0(129)(101)(139)(202)Other Financing Activities(49)(48)(33)(37)(43)Cash from Financing Activities(102)30 176(76)(13

164、6)Cash at Beg of Year 827 858 928 1,377 1,501 Net Changes in Cash 40 35 446 126 229 Forex(9)35 3(3)3 Cash at End of Year 858 928 1,377 1,501 1,733 Source:the Company,Guotai Junan International.Balance Sheet Year end 31 Dec(HKD m)2020A 2021A 2022F 2023F 2024F Property,Plant and Equipment 2,108 2,269

165、2,283 2,302 2,321 Interests in an Associate 0 5 5 5 6 Goodwill 130 113 113 113 113 Other Non-current Assets 308 234 169 169 169 Total Non-current Assets 2,545 2,621 2,571 2,590 2,609 Inventories 137 154 197 261 338 Contract Assets 1,452 2,450 3,170 4,331 5,723 Trade and Other Receivables 1,321 1,499

166、 1,746 1,972 2,181 Amounts Due from Related Parties 884 878 966 1,062 1,168 Cash&Cash Equivalents 858 928 1,377 1,501 1,733 Other Current Assets 191 280 324 345 449 Total Current Assets 4,843 6,189 7,780 9,472 11,591 Total Assets 7,389 8,810 10,351 12,062 14,200 Short-term Borrowings 651 825 907 998

167、 1,097 Contract Liabilities 778 911 957 1,053 1,158 Trade Payables,Other Payables and Accruals 1,465 2,072 2,827 3,729 4,815 Amounts Due to Related Parties 1,555 1,868 1,910 1,954 1,998 Other Current Liabilities 199 245 321 425 560 Total Current Liabilities 4,647 5,921 6,922 8,158 9,628 Long-term Bo

168、rrowings 411 509 518 527 536 Contract Liabilities 756 767 767 767 767 Other Non-current Liabilities 250 28 34 42 49 Total Non-current Liabilities 1,417 1,303 1,319 1,335 1,351 Total Liabilities 6,064 7,225 8,241 9,493 10,980 Share Capital 22 22 23 23 23 Reserves 1,381 1,649 2,182 2,651 3,311 Total S

169、hareholders Equity 1,403 1,671 2,205 2,673 3,334 Minority Interest(78)(86)(95)(104)(113)Total Equity 1,325 1,585 2,110 2,569 3,220 Total Equity and Liabilities 7,389 8,810 10,351 12,062 14,200 BVPS 0.651 0.775 1.000 1.185 1.478 Financial Ratios 2020A 2021A 2022F 2023F 2024F Gross Margin 10.8 10.8 10

170、.8 11.2 11.6 Operating Margin 5.7 6.3 6.6 7.3 8.1 Net Margin 4.3 4.6 4.8 5.3 5.8 ROA(%)2.5 3.5 4.2 5.3 6.5 ROE(%)15.4 19.0 21.5 24.9 28.7 Net Gearing Ratio(%)15.4 25.6 2.3 0.9 Net Cash Interest Coverage(x)9.1 14.4 16.2 20.9 25.8 Company Report See the last page for disclaimer Page 21 of 21 2 Septemb

171、er 2022 CSC Development 中国建筑兴业(00830 HK)Table_PageHeader CSC Development(00830 HK)Company Rating Definition The Benchmark:Hong Kong Hang Seng Index Time Horizon:6 to 18 months Rating Definition Buy 买入 Relative Performance15%;or the fundamental outlook of the company or sector is favorable.Accumulate

172、 收集 Relative Performance is 5%to 15%;or the fundamental outlook of the company or sector is favorable.Neutral 中性 Relative Performance is-5%to 5%;or the fundamental outlook of the company or sector is neutral.Reduce 减持 Relative Performance is-5%to-15%;or the fundamental outlook of the company or sect

173、or is unfavorable.Sell 卖出 Relative Performance 5%;or the fundamental outlook of the sector is favorable.Neutral 中性 Relative Performance is-5%to 5%;or the fundamental outlook of the sector is neutral.Underperform 跑输大市 Relative Performance-5%;Or the fundamental outlook of the sector is unfavorable.DIS

174、CLOSURE OF INTERESTS(1)The Analysts and their associates do not serve as an officer of the issuer mentioned in this Research Report.(2)The Analysts and their associates do not have any financial interests in relation to the issuer mentioned in this Research Report.(3)Except for SF REIT(02191 HK),JIN

175、SHANG BANK(02558 HK),BANKOFZHENGZHOU(06196 HK),XPENG-W(09868 HK),Guotai Junan and its group companies do not hold equal to or more than 1%of the market capitalization of the issuer mentioned in this Research Report.(4)Guotai Junan and its group companies have not had investment banking relationships

176、 with the issuer mentioned in this Research Report within the preceding 12 months.(5)Guotai Junan and its group companies are not making a market in the securities in respect of the issuer mentioned in this Research Report.(6)Guotai Junan and its group companies have not employed an individual servi

177、ng as an officer of the issuer mentioned in this Research Report.There is no officer of the issuer mentioned in this Research Report associated with Guotai Junan and its group companies.DISCLAIMER This Research Report does not constitute an invitation or offer to acquire,purchase or subscribe for se

178、curities by Guotai Junan Securities(Hong Kong)Limited(Guotai Junan).Guotai Junan and its group companies may do business that relates to companies covered in research reports,including investment banking,investment services,etc.(for example,the placing agent,lead manager,sponsor,underwriter or inves

179、t proprietarily).Any opinions expressed in this report may differ or be contrary to opinions or investment strategies expressed orally or in written form by sales persons,dealers and other professional executives of Guotai Junan group of companies.Any opinions expressed in this report may differ or

180、be contrary to opinions or investment decisions made by the asset management and investment banking groups of Guotai Junan.Though best effort has been made to ensure the accuracy of the information and data contained in this Research Report,Guotai Junan does not guarantee the accuracy and completene

181、ss of the information and data herein.This Research Report may contain some forward-looking estimates and forecasts derived from the assumptions of the future political and economic conditions with inherently unpredictable and mutable situation,so uncertainty may contain.Investors should understand

182、and comprehend the investment objectives and its related risks,and where necessary consult their own financial advisers prior to any investment decision.This Research Report is not directed at,or intended for distribution to or use by,any person or entity who is a citizen or resident of or located i

183、n any jurisdiction where such distribution,publication,availability or use would be contrary to applicable law or regulation or which would subject Guotai Junan and its group companies to any registration or licensing requirement within such jurisdiction.2022 Guotai Junan Securities(Hong Kong)Limited.All Rights Reserved.27/F.,Low Block,Grand Millennium Plaza,181 Queens Road Central,Hong Kong.Tel.:(852)2509-9118 Fax:(852)2509-7793 Website:.hk