Overview Key strengths Key risks Strong market position in Hong Kong and Macau's engineering and construction (E&C) industry. Margin pressure owing to business transformation to projects with shorter cash collection period but lower profitability. Substantial contract pipeline and continual business transformation provide solid profit and deleveraging visibility. Smaller operational scale in mainland China compared with other state-owned-enterprise peers. Sufficient and timely parent support, being a strategically important subsidiary to the ultimate parent. We believe China State Construction International Holdings Ltd. (CSCI)'s good market reputation and satisfactory project execution record in complex E&C projects will continue to underpin its market competitiveness. These factors should support the company to sustain its leading market position in Hong Kong and Macau and to further
