05/26/2015
China / Industrials
With the implementation of new railway projects expected to pick up speed in China, we see values emerging across the infrastructure space
The Chinese government is opening up the funding market to finance domestic infrastructure projects, which means the new project flow will intensify in coming months. As such, we see values emerging across the infrastructure space and we believe it is time to revisit the construction names.
In this report from DBS, we explain why we have upgraded China Communications Construction Company (CCCC), China Railway Construction Corp (CRCC) and China Railway Group (CRG) to BUY and downgraded China State Construction International (CSCI) to HOLD.
Here are a few key points from the report:
- Investment into railway sector to accelerate in coming quarters
- Domestic funding reform ready to support faster implementation of new projects
- Infrastructure companies optimistic on the “One Belt, One Road” strategy
- We upgraded CCCC, CRCC and CRG to BUY; downgraded CSCI to HOLD
- We maintain a BUY call on train equipment manufacturers
Read the full report
