Bulletin: China-Based CSCI's Project Mix Shift To Drive Deleveraging

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) March 22, 2023--A shift in business mix and acceleration of project executions in China should enhance the financial strength of China State Construction International Holdings Ltd. (CSCI). The resulting profit expansion and moderating debt growth should help the company's leverage to further trend down in 2023. China's infrastructure push should help CSCI (BBB/Stable/--) to grow its revenue by 6%-10% in 2023. This is even as business growth in Hong Kong and Macao is likely to decelerate due to a high base. The Chinese government's frontloading of its special-purpose bond issuances in the first half of this year will likely support faster project execution of the company in

...HONG KONG (S&P Global Ratings) March 22, 2023--A shift in business mix and acceleration of project executions in China should enhance the financial strength of China State Construction International Holdings Ltd. (CSCI). The resulting profit expansion and moderating debt growth should help the company's leverage to further trend down in 2023. China's infrastructure push should help CSCI (###/Stable/--) to grow its revenue by 6%-10% in 2023. This is even as business growth in Hong Kong and Macao is likely to decelerate due to a high base. The Chinese government's frontloading of its special-purpose bond issuances in the first half of this year will likely support faster project execution of the company in mainland China. CSCI's topline expanded 32% in 2022, mainly on higher revenue from quarantine hospital-related projects in Hong Kong. CSCI's profitability is likely to expand modestly in 2023, with subsiding pandemic disruptions and moderating raw material costs. The company's reduced exposure...

Bulletin