Bulletin: CSCI's Business Transformation To Support Gradual Deleveraging

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Aug. 23, 2022--Accelerating infrastructure investment in China and ongoing business mix changes should enhance the credit strength of China State Construction International Holdings Ltd. (CSCI). With the profit expansion that we anticipate, improving operating cash flow (OCF), and moderating debt growth, the leverage ratios of the Hong Kong-based engineering and construction company will likely further improve over the next two years. CSCI's (BBB/Stable/--) revenue growth will outpace our previous expectation of 13%-18% in 2022, in our view. The company's top line rose materially by 47.9% in the first half of 2022, with a meaningful increase in project execution in Hong Kong and Macau. Its new contract wins

...HONG KONG (S&P Global Ratings) Aug. 23, 2022--Accelerating infrastructure investment in China and ongoing business mix changes should enhance the credit strength of China State Construction International Holdings Ltd. (CSCI). With the profit expansion that we anticipate, improving operating cash flow (OCF), and moderating debt growth, the leverage ratios of the Hong Kong-based engineering and construction company will likely further improve over the next two years. CSCI's (###/Stable/--) revenue growth will outpace our previous expectation of 13%-18% in 2022, in our view. The company's top line rose materially by 47.9% in the first half of 2022, with a meaningful increase in project execution in Hong Kong and Macau. Its new contract wins also showed solid 28% year-on-year growth during the period, with 59% and 24% year-on-year growth in Hong Kong and mainland China respectively. The Chinese government is weighing up higher infrastructure investment to support local economic growth. This,...

Bulletin