01800 Overview

• UBS Infrastructure Outlook: UBS believes that infrastructure will continue to be a stabilizing factor for China's economy amid external uncertainties and weak domestic demand, with growth expected to be more structural than broad-based.

• Forecast Adjustments: The firm anticipates easing growth pressures as property conditions stabilize and fiscal support improves, shifting its valuation basis from 2025 to 2026.

• Stock Ratings and Target Prices: UBS maintains a Buy rating for CHINA RAILWAY and CHINA COMM CONS, while rating CHINA RAIL CONS as Neutral, with adjusted target prices reflecting their growth expectations.

• Investment Preferences: UBS favors CHINA RAILWAY due to its mining business exposure, which provides better earnings and valuation leverage compared to other infrastructure stocks.

• Financial Performance: CHINA COMM CONS reported a revenue of RMB513.915 billion for 1-3Q25, a decrease of 4.23% YoY, with net profit attributable to the parent company falling 16.14% YoY to RMB13.647 billion.

• Contract Growth: The company signed new contracts worth RMB1.34 trillion in 9M25, marking a 4.65% increase YoY, with a notable acceleration in new contract value in 3M25, which rose by 9.18% YoY.

• Overseas Business Resilience: The overseas segment of CHINA COMM CONS showed better performance and resilience in new contracted order growth compared to domestic operations.

• Target Price Adjustment: Huatai Securities revised the target prices for CHINA COMM CONS' A-/H-shares down to RMB11.02/$6.71 while maintaining a "Buy" rating, reflecting a PE ratio of 9x for A-shares and 5x for H-shares.

CHINA COMM CONS Financial Performance

• Revenue and Profit Decline: In the first half of 2025, CHINA COMM CONS reported a revenue of RMB 337.055 billion, reflecting a year-on-year decrease of 5.71%. The net profit attributable to the parent company was RMB 9.568 billion, down 16.06% compared to the previous year.

• New Orders Growth: Despite the decline in revenue and profit, the company experienced a 3.1% year-on-year increase in new orders during the same period, indicating improved stability and completeness in operations.

Market Outlook and Analyst Ratings

• Future Expectations: With the implementation of policies aimed at stabilizing growth and reducing debt in the second half of 2025, operations are anticipated to improve. As a result, Huatai Securities has maintained a 'Buy' rating for both the H- and A-shares of CHINA COMM CONS.

• Target Price Adjustment: Huatai Securities has revised its target prices for CHINA COMM CONS' H- and A-shares, lowering them from RMB 12.11 ($7.33) to RMB 11.43 ($6.96), reflecting the company's relative performance and the resilience of its overseas business.

Short Selling and Market Activity

• Short Selling Data: The short selling activity for CHINA COMM CONS was reported at $5.51 million, with a short selling ratio of 5.732%, indicating a significant level of market skepticism regarding the company's stock performance.

• Stock Performance: The stock price for CHINA COMM CONS (01800.HK) decreased by 0.320 (-5.714%), while the A-shares (601800.SH) saw a decline of 0.140 (-1.528%).

CHINA COMM CONS (01800.HK) Interim Results

• Stock Performance: The stock price has decreased by 0.020, reflecting a decline of 0.356%.
• Short Selling Activity: There has been significant short selling activity amounting to $5.51 million, with a short selling ratio of 5.732%.
• Reporting Period: The interim results pertain to the period ending June 2025, indicating a focus on the company's financial performance during the first half of the fiscal year.

• Strategic Partnership Announcement: EHang Holdings Limited has formed a strategic partnership with China Communications Information & Technology Group (CCIT) to advance the low-altitude economy and develop urban air mobility infrastructure in China, leveraging CCIT's expertise in digital transformation and large-scale infrastructure projects.

• Infrastructure Development Goals: The collaboration aims to establish 100 comprehensive air traffic terminals and 100 low-altitude tourism terminals across major cities and scenic areas in China by 2025, while also creating a full-chain innovation service platform to support sustainable growth in the low-altitude economy.