cccc- the industry leader with attractive valuation jp...
TRANSCRIPT
June, 2013
JP Morgan Investors Forum, Beijing
CCCC- The Industry Leader With Attractive Valuation
Agenda
1
Company Overview
Financial Highlights and Stock Performance
Focus of Business Strategy
Industry Opportunity and Company Outlook
2
Company History and Share Capital Structure
2013 1950s
Class of
Shares
Number of
Shares (mn) Percentage
Domestic Shares 10,324.9 63.83%
A Shares 1,422.3 8.80%
H Shares 4,427.5 27.37%
Total 16,174.7 100.00%
Share Capital SASAC
63.8%
Shareholders of H and
A shares
36.2%
100%
CCCG (Holdings)
Oct, 2006 Established
China
Communications
Construction
July, 2005 CHEC Group and
CRBC Group merged
to form China
Communications
Construction Group
Dec, 2006 Listed in HK Stock
Exchange with an
issuance of
4,427.5mn H shares
Stock Code: 01800
Group
commenced
operation in
China
China Harbor
Engineering
Corporation
China
Road & Bridge
Corporation
March, 2012 Listed in Shanghai
Stock Exchange
with an issuance of
1,349.7mn A shares
Stock Code: 601800
CCCC
3
Business Structure
Core Business
Infrastructure
Construction
Port Construction
Road & Bridge
Construction
Railway and rail
transportation
Construction
BT/BOT Project
Overseas Project
Port Design
Road & Bridge
Design
Railway and rail
transit Design
Capital Dredging
Maintenance
Dredging
Reclamation
Environmental
Protection
Dredging
Container Cranes
Bulk cargo handling
equipments
Offshore construction
equipments
Large steel structures
Road Construction
Machinery
Infrastructure
Design Dredging Heavy
Machinery
Manufacturing
Industry Leading Position
1
1
1
1
1
The largest port design and
construction company in China
A Leading Road & Bridge Design
and construction company in
China
The largest Dredging Company in
the world
The largest port machinery
manufacturer, a leading offshore
auxiliary ships manufacturer and
top-tier offshore equipment design
company in the world
The largest international engineering
contractor in China
Agenda
4
Company Overview
Financial Highlights and Stock Performance
Focus of Business Strategy
Industry Opportunity and Company Outlook
Business Performance
5
New Contract
Backlog
CAGR=16.1%
2008 2009 2010 2011 2012
283,040
360,363
411,738 457,848
514,920
2008 2009 2010 2011 2012
334,330
426,027
512,103
601,912
700,525
CAGR=20.3%
RMB mn
RMB mn
2008 2009 2010 2011 2012
218,098 264,058
310,633
358,985
433,815
CAGR=18.8%
2008 2009 2010 2011 2012
6,075 7,200
9,599
11,761 12,248
3.4% 3.2%
3.5%
4.0%
4.1%
2008 2009 2010 2011 2012
41,171
54,614 62,990
70,231
86,749
Financial Highlights
6
Net Profit&Net Margin
2008 2009 2010 2011 2012
178,889
226,920
272,734 294,281 295,321
Revenue
Total Asset Net Asset
CAGR=13.4% CAGR=19.2%
CAGR=20.5%
RMB mn
RMB mn RMB mn
RMB mn
Stock Performance Since Listing
7
0
2000
4000
6000
8000
10000
12000
14000
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
350%
06-12 07-06 07-12 08-06 08-12 09-06 09-12 10-06 10-12 11-06 11-12 12-06 12-12
成交金额 CCCC HSI HSCEI
CCCC’s H-share price outperformed HSI and HSCEI for much of the time since listing,
which has demonstrated market confidence in the company. It reached its historical high
price at HKD24.6 in Nov 2007.
Resulted from gloomy market expectations influenced by economic downturn and
tightening policy by the Chinese government, CCCC’s share price had been sluggish for
the year around 2010, but for the year 2012 it started to pick up and outperform again.
Volume
Agenda
8
Company Overview
Financial Highlights and Stock Performance
Focus of Business Strategy
Industry Opportunity and Company Outlook
Infrastructure
Construction
75.5%
Infrastructure
Design
5.4%
Dredging
10.5%
Heavy
Machinery
Manufacturing
6.4%
Others
2.1%
Segment Result (2012)
Infrastructure
Construction
69.7%
Infrastructure
Design
12.1%
Dredging
18.1%
Heavy
Machinery
Manufacturing
-0.6%Others
0.7%
Revenue (2012) We devote to improve our business structure
through increasing projects of higher profit margin
and exploring new business area to seek new
growth as well as to maximize our profitability.
Focus on Overseas
Business and
Investment Projects
CCCC
Core Business
Infrastructure
Construction
Heavy Machinery
Manufacturing
Infrastructure
Design
Investment
Business Overseas
Business
Dredging
Current Structure and Mix Improvement
9
We have established global
presence in over 120 countries and
regions, e.g. Africa, South East
Asia and Middle East.
Latin America is one area of new
focus.
2008 2009 2010 2011 2012
60,800 62,720 62,323
80,828 75,417
14,700
21,958 27,151
32,151 38,950
New order
Revenue
RMB million
10
Overseas Expansion Strategy
We have been operating overseas for over 30 years, and will continue to aggressively explore
oversea markets. Revenue generated from overseas business will account for 30% of the
company’s overall revenue in 2015 compared with roughly 20% in 2012.
Rich experiences and outstanding capacity Steady growth of overseas business
Holding a great variety of global
construction licenses, we are able to
conduct port, road and bridge, and
railway etc. construction projects,
and is exploring investment projects
overseas.
Overseas
Projects
Global
Network &
New area
Excellent
Risk
management
Strict risk management system has
been adopted in advance.
Rich experiences against political
and economic risk, especially the
forex risk.
New contract value in 2012 was 4.6x over that in 2006 when
CCCC was listed in HKEX.
Revenue keeps steady growth over recent years, and revenue
from overseas as a percentage of the total also constantly
increases.
11
Further Development of Investment Business
The idea of developing investment business (mainly BT/BOT project) is to transform CCCC from a
contractor to a contractor + operator with assets that are able to generate stable returns in the long-term.
Xianning to Tongshan
Expressway in Hubei Province,
BOT+EPC Project
Guiyang to Duyun Expressway
in Guizhou Province,
BOT+EPC Project
Guangming Expressway,
Guangzhou,
BOT Project
Setting as the focus of business
transition as the company
strategic plan
Projects mainly include: Expressway, land development, real estate,
integrated urban development, etc.
Strict risk control: “Five Don’ts” – not undertaking projects which:
fall outside of our core business, require un-
secured loans, have no guarantees, deliver below
standard rates of return, and exceed our capability
Chongqing Chaotianmen
Yangtze River Bridge,
BT Project
At the end of 2012
Number of investment projects: 103
Total investment (contract value): RMB274.5bn
Revenue from investment projects as a
percentage of total: 10.3%
Target value of overall BOT asset
by end of 2015: RMB100bn
12
Unique Business Model
Diversified products create a balanced business and help minimise risks.
Comprehensive solutions are available to customers as a result of integrated business chain.
Combinative
business of
land and
water
One-stop
solutions
Ports, navigation
channels, roads,
bridges, tunnels,
railways, urban
rails, airport
Planning
Design and Build
Investment
Operation
HongKong-Macao-
Zhuhai Bridge under
construction ：
Master plan, reclamation
of artificial islands, steel
structure manufacturing,
construction of islands
and tunnels by CCCC
Zhuhai Hengqin Island
under construction：
Integrated development of
the new city area, including
infrastruture construction and
reclamation of artificial
islands by CCCC
Agenda
13
Company Overview
Financial Highlights and Stock Performance
Focus of Business Strategy
Industry Opportunity and Company Outlook
14
11th Five-Year Plan 12th Five-Year Plan %change
Total Transportation Network (thousand km) 4,320 4,900 13.4%
Railway mileage (thousand km) 91 120 31.9%
Expressway mileage (thousand km) 58 83 43.1%
Urban rail mileage (km) 1,400 3,000 114.3%
Number of deep-water berths 1,774 2,214 24.8%
Number of airport for civil use 175 230 31.4%
Industry Opportunity
The 12th Five-Year Plan for Comprehensive Development of Transportation (MOT, July 2012)
MOT General Policy on
Transportation Infrastructure
Development:
Moderately In Advance
-Out of the MOT plan, there are
increasing demand of urban
development as a result of
urbanization
-Investment as a major impetus
for Chinese economic growth
- More credit flowing into real
economy
Market
Opportunity
for CCCC
15
Outlook
Leading global contractor that provides one-stop
services in infrastructure construction
Global investor in infrastructure
Developer and Operator in comprehensive
civil engineering and development
Global top-tier company with standardized corporate
governance structure, scientific management, flexible
operational system, state-of-the-art expertise, high
employee satisfactions and strong social recognition.
Overall Target
Becoming a top-tier
conglomerate worldwide
Maximizing shareholder’s
interests
16
Thank You
Investor Relations Team
YU Jingjing, TAN Lu, ZHAO Yang, LI Yilin
Tel: +86-10-8201 6562
Fax: +86-10-8201 6524
Email: [email protected]