The analyst rating for CHINA COMM CONS (01800.HK) is maintained at "Buy" despite a decline in revenue and net profit. The reasons for this rating include:
1. New Contract Growth: The company reported a 4.65% year-over-year increase in newly signed contracts, indicating positive momentum, particularly with a 9.18% increase in new contract value for the third quarter of 2025.
2. Overseas Business Resilience: The company's overseas operations are showing better performance and a higher proportion of new contracted order growth, suggesting stronger resilience compared to domestic operations.
3. Valuation Metrics: The broker's analysis includes a favorable price-to-earnings (PE) ratio for both A-shares (9x) and H-shares (5x), which may indicate that the stock is undervalued relative to its earnings potential.
4. Target Price Adjustment: Although the target prices for both A-shares and H-shares were cut, the adjustments still reflect a positive outlook, supporting the "Buy" rating.
Overall, the combination of contract growth, overseas business strength, and attractive valuation metrics underpins the analyst's positive rating.
