Date: 26 September 2024
Broker: UOB Kay Hian (Hong Kong) Limited
1. Company Overview
China Communications Construction Company Limited (stock code: 1800 HK) is a prominent infrastructure and construction company, with a core focus on providing construction, design, and engineering services for a range of infrastructure projects. The company operates across multiple regions and serves both public and private sectors, particularly in large-scale infrastructure projects.
2. Financial Performance (1H24)
In the first half of 2024 (1H24), China Communications Construction reported robust financials:
- Revenue: RMB 356.01 billion
- Net Profit: RMB 15.16 billion
- Dividend: An interim dividend of RMB 0.14 per share, resulting in a current dividend yield of 7.2%.
3. Stock Price & Technical Performance
- Trading Range: The stock is currently recommended for trading within the buy range of HK$4.45-HK$4.50.
- Target Prices: The stock has near-term target prices of HK$4.74 and HK$4.88.
- Protective Stop: The protective stop is placed at HK$4.25.
4. Technical Analysis
The stock has shown a strong recovery from its mid-September low of HK$3.80, marking a gradual rebound. Recent trading highlights include:
- Momentum: The stock has risen above its 10-day, 20-day, and 50-day moving averages, signaling increasing price momentum.
- RSI Indicator: The 14-day Relative Strength Index (RSI) has climbed above 50, indicating strengthening momentum.
- MACD Indicator: The Moving Average Convergence Divergence (MACD) indicator shows the fast line rising above the slow line, signaling a potential buying opportunity. If both lines rise into the bullish zone above zero, this will confirm a double bullish signal.
5. Investment Outlook
Given the stock’s recent price momentum and technical indicators, the company’s current price levels present a trading opportunity, with the potential for gains as the stock aims to hit its target prices in the coming weeks.
