Bulletin: CSCI's Improving Cash Flow Will Enhance Its Financial Profile

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) March 25, 2024--An ongoing business transformation and a solid orderbook will strengthen the credit profile of China State Construction International Holdings Ltd. (CSCI). We expect the company to deleverage further in the coming two years, with better cash flow and slower debt expansion. The Hong Kong-headquartered engineering and construction (E&C) company (BBB/Stable/--) has a solid order backlog to support mid-single-digit revenue growth in 2024-2025. This follows an 11.5% revenue increase in 2023. A growing focus on technology-related E&C projects will support further expansion in mainland China. CSCI's new contracts in this business jumped by 45% in 2023. Accelerated infrastructure investments in Hong Kong will also support faster

...March 25, 2024 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) March 25, 2024--An ongoing business transformation and a solid orderbook will strengthen the credit profile of China State Construction International Holdings Ltd. (CSCI). We expect the company to deleverage further in the coming two years, with better cash flow and slower debt expansion. The Hong Kong-headquartered engineering and construction (E&C) company (###/Stable/--) has a solid order backlog to support mid-single-digit revenue growth in 2024-2025. This follows an 11.5% revenue increase in 2023. A growing focus on technology-related E&C projects will support further expansion in mainland China. CSCI's new contracts in this business jumped by 45% in 2023. Accelerated infrastructure investments in Hong Kong will also support faster project execution. This reflects CSCI's leading market position with strong expertise in hospital and public housing E&C. The company's new contracts in Hong Kong...

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