Bulletin: CSCI To Fortify Cash Flow Through Business Transformation

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) March 26, 2025--China State Construction International Holdings Ltd.'s (CSCI) business transformation and more stringent project selection will enhance profits and cash flow. This will help the company bring down leverage over the next one to two years. CSCI (BBB/Stable/--) will likely take on more shorter-term projects such as government-targeted repurchase projects and decrease exposure to investment-driven projects with longer business cycles. The shift in project mix will improve receivable turnover and operating cash flow (OCF). The company reported OCF of HK$2 billion in 2024, up from HK$0.5 billion in 2023. In our view, a leading market position and solid order book could lift CSCI's revenue in Hong

...March 26, 2025 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) March 26, 2025--China State Construction International Holdings Ltd.'s (CSCI) business transformation and more stringent project selection will enhance profits and cash flow. This will help the company bring down leverage over the next one to two years. CSCI (###/Stable/--) will likely take on more shorter-term projects such as government- targeted repurchase projects and decrease exposure to investment-driven projects with longer business cycles. The shift in project mix will improve receivable turnover and operating cash flow (OCF). The company reported OCF of HK$2 billion in 2024, up from HK$0.5 billion in 2023. In our view, a leading market position and solid order book could lift CSCI's revenue in Hong Kong over the next one to two years. The company's new contracts in Hong Kong and Macao expanded by 24% in 2024. Increasing infrastructure demand amid Hong Kong's push for the Northern Metropolis...

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