- Transportation Infrastructure Construction Market Report 2026-2030 Featuring China Communications Construction Co., Vinci, CK Hutchison, CRH, Hochtief and More
Jan 28, 2026
Company Logo
Key market opportunities include expanding smart & sustainable transportation systems, rising demand from the tourism sector, increased focus on climate-resilient infrastructure, and enhanced real-time monitoring
Transportation Infrastructure Construction MarketTransportation Infrastructure Construction Market·GlobeNewswire Inc.
Dublin, Jan. 28, 2026 (GLOBE NEWSWIRE) -- The "Transportation Infrastructure Construction Market Report 2026" has been added to ResearchAndMarkets.com's offering. The report offers comprehensive insights, including market size, regional shares, and competitive analysis.
The global transportation infrastructure construction market has witnessed robust growth and is projected to continue its upward trajectory. From 2025 to 2026, the market is expected to expand from $3.65 trillion to $3.83 trillion at a compound annual growth rate (CAGR) of 5%. This growth is fueled by government infrastructure programs, urban transport network expansions, and significant investments in civil engineering.
Looking ahead to 2030, the market is anticipated to reach $4.66 trillion, maintaining a steady CAGR of 5%. Driving forces include rising demand for sustainable and smart systems, automation in construction, and digital twins in project planning. Key trends involve expanding smart transportation infrastructure, automated construction equipment adoption, and real-time infrastructure monitoring solutions.
The growing tourism industry plays a pivotal role in this market's expansion. Increased travel accessibility and cultural exploration fuel infrastructure investments to develop robust road networks and enhance connectivity in tourism hotspots. For instance, Australia experienced a 5.6% increase in international arrivals in 2025, prompting further infrastructure development.
In this evolving landscape, strategic partnerships are becoming crucial. For example, Ferrovial's collaboration with the Georgia Institute of Technology aims to drive innovation in transport infrastructure, promoting research and sustainability. Such partnerships leverage combined strengths for advancing industry solutions.
Major players like Accenture are actively enhancing their market capabilities, demonstrated by Accenture's acquisition of Anser Advisory to bolster infrastructure project execution. Companies such as China Communications Construction Company, Vinci SA, and Bechtel Corporation lead the market with significant contributions.
Market dynamics are also shaped by changing global trade relations and tariffs, impacting the cost of imported materials. Although these pressures are notable in Asia-Pacific, Europe, and North America, they are also spurring local production and supply chain resilience.
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Research Coverage:
Market analysis includes product features, brand differentiation, and innovation trends. Supply chain analysis highlights vital raw materials and supplier insights. Identify emerging technologies and strategies for market leadership and differentiation. Understand regulatory and investment landscapes influencing market dynamics. Market forecasting considers technological advancements, geopolitical tensions, and economic factors. Market attractiveness scoring offers strategic insights for decision-makers. Comprehensive geographical analysis reflects global value chain realignments. Competitive landscape examines key players, market shares, and transformative financial deals.
Markets Covered:
By Infrastructure Type: Roads, Highways, and Bridges; Railways and Metros; Sea Ports; Airports By Construction Type: New Construction; Repair and Maintenance By Application: Urban; Rural
Subsegments:
Urban and rural roads and bridges, expressways, and suspension bridges. Urban railways, high-speed railways, metro stations, and light rail systems. Container terminals, passenger ports, and port expansions. Runways, terminals, logistics facilities, and airport infrastructure expansions.
Companies Mentioned: Notable players such as China Communications Construction Company, Vinci SA, and Bechtel Corporation, among others.
Countries: A global analysis including Australia, China, India, USA, and more.
Regions: Coverage extends to Asia-Pacific, Western and Eastern Europe, North and South America, Middle East, and Africa.
Time Series: Offers a five-year history and ten-year forecast.
Data: Contains ratios of market size to related markets, GDP proportions, and per capita expenditure.
Key Attributes
Report Attribute Details No. of Pages 250 Forecast Period 2026 - 2030 Estimated Market Value (USD) in 2026 $3.83 Trillion Forecasted Market Value (USD) by 2030 $4.66 Trillion Compound Annual Growth Rate 5.0% Regions Covered Global
The companies featured in this Transportation Infrastructure Construction market report include:
China Communications Construction Company Vinci SA CK Hutchison Holdings CRH plc Hochtief AG Bechtel Corporation Colas Group Fluor Corporation Bouygues Construction SA Larsen & Toubro Limited AECOM Kiewit Corporation Balfour Beatty plc Laing O'Rourke Jacobs Engineering Group Inc. TATA Projects KEC International Limited Hindustan Construction Company Limited Globalvia Inversiones S.A. Megha Engineering & Infrastructures Limited ACS Group of Companies LLC Beijing Urban Construction Group Eagle Infra India Ltd IRB Infrastructure Developers Ltd
For more information about this report visit https://www.researchandmarkets.com/r/t1cb0l
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Attachment
Transportation Infrastructure Construction Market
CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood,Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900
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- Should You Reassess China Communications Construction After Recent Dividend Payout and Share Price Dip?
Sep 9, 2025
Thinking about what to do with China Communications Construction stock? You are definitely not alone. After all, with long-term returns looking robust and recent market momentum creating new buzz, making a call here takes a blend of patience and perspective. The stock has delivered a hefty 38.5% gain over the last year, and an even more impressive 69.9% rise over five years, which stands out in its sector. Even though the last month has seen shares slip by 11.3%, the year-to-date trend remains only mildly negative at -4.8%. This hints that the recent dip may reflect shifting investor sentiment or macro-related adjustments, rather than any drastic change in the company's prospects.
What does all that mean for value-focused investors? On several established metrics, China Communications Construction is looking appealing. With a valuation score of 4 out of a possible 6, there is evidence that the company is undervalued according to four distinct checks. That kind of score does not come easily and suggests there is substance behind the upbeat longer-term returns, but also room for price growth if the market’s view shifts again.
In the next section, we will break down exactly how these valuation checks stack up and what makes this analysis unique. If you are wondering not just what the numbers say, but the best approach for making sense of them, you will not want to miss what is coming up.
Why China Communications Construction is lagging behind its peers
Approach 1: China Communications Construction Dividend Discount Model (DDM) Analysis
The Dividend Discount Model (DDM) is a valuation approach that estimates a company's intrinsic value by projecting future dividends and discounting them back to today’s terms. This model works best for companies with stable, predictable dividend payments and can help assess both the sustainability and potential growth of those dividends over time.
In the case of China Communications Construction, the most recent dividend per share is CN¥0.3161, with a payout ratio at a notably high 132.4%. Using the DDM, the expected dividend growth rate is negative, calculated at around -2.0%. This is derived from the formula (1 - Payout Ratio) multiplied by Return on Equity. With a high payout and ROE of 6.29%, the outcome is a projected contraction in dividend growth. Such a high payout ratio raises questions about long-term dividend sustainability, especially if earnings do not rise in step with distributions.
According to these dividend projections, the model gives an intrinsic value of CN¥3.10 per share. As the current market price is about 65.0% above this figure, the stock appears significantly overvalued by this measure, at least on a strict dividend basis.
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Result: OVERVALUED
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for China Communications Construction.1800 Discounted Cash Flow as at Sep 2025
Our Dividend Discount Model (DDM) analysis suggests China Communications Construction may be overvalued by 65.0%. Find undervalued stocks or create your own screener to find better value opportunities.
Approach 2: China Communications Construction Price vs Earnings
The price-to-earnings (PE) ratio is a widely used metric for valuing profitable companies because it relates a company's market price directly to its earnings power. By showing how much investors are willing to pay for each dollar of earnings, the PE ratio quickly reveals market sentiment about a company's future prospects. A “normal” or “fair” PE ratio is influenced by future growth expectations, the company's risk profile, and how it compares within its industry. Higher anticipated growth and lower risk generally justify a higher ratio, while slower growth or greater uncertainty result in lower multiples being considered fair.
China Communications Construction currently trades at a PE of just 3.60x. This figure is noticeably lower than both the Construction industry average of 10.79x and the average among its direct peers at 7.31x. Taken at face value, this could suggest the stock is undervalued compared to its sector and competitors. However, raw multiples do not always tell the full story given differences in growth rates, profitability, and underlying risks.
This is where the Simply Wall St “Fair Ratio” offers a more tailored comparison. Rather than only using peer or industry benchmarks, the Fair Ratio takes into account China Communications Construction’s unique blend of earnings growth potential, profit margins, market cap, and risk profile. For this stock, the Fair Ratio is estimated at 8.45x. With its current PE of 3.60x well below this level, the evidence points toward a meaningful undervaluation relative to what would be considered fair given the company's fundamentals and context.
Result: UNDERVALUEDSEHK:1800 PE Ratio as at Sep 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.
Upgrade Your Decision Making: Choose your China Communications Construction Narrative
Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives. A Narrative is your personal investment perspective: the story you believe about a company’s future, backed up by your own assumptions about its fair value, revenue, earnings, and margins. Narratives link this story directly to a financial forecast, then tie it to a fair value estimate. This makes your decision-making much more dynamic and meaningful.
This approach is simple, accessible, and available right now in the Community section on Simply Wall St, where millions of investors share and update their Narratives. Because Narratives automatically adjust when new information arrives, they empower you to react in real time and compare your fair value directly to the current market price. This means you will know when to act. For example, one China Communications Construction investor may see high growth potential and set a fair value well above today’s price, while another may consider sector risks and arrive at a much more conservative estimate. By using Narratives, you bring your own insights into the equation and invest with clarity and confidence.
Do you think there's more to the story for China Communications Construction? Create your own Narrative to let the Community know!SEHK:1800 Earnings & Revenue History as at Sep 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include 1800.HK.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- CWE held “Lancang Mekong Green Course” Open Day to celebrate the 10th anniversary of the Nam Ngiep 2 Hydropower Station
Jul 25, 2025
VIENTIANE, Laos, July 24, 2025 (GLOBE NEWSWIRE) -- To celebrate the 10th anniversary of the commissioning and operation of the Nam Ngiep 2 Hydropower Station in Laos, China International Water & Electric Corp. (CWE), a subsidiary of China Communications Construction Company (CCCG), held “Lancang Mekong Green Course” Open Day event from July 4 to 5, 2025. The event drew wide participation from students and faculty of the National University of Laos, government representatives at various levels, and residents from surrounding communities, who came together to witness the station’s achievements over the past decade.CWE held “Lancang Mekong Green Course” Open Day.png
Nam Ngiep 2 is the second Build-Own-Operate-Transfer (BOOT) hydropower project developed by the CWE in Laos. With a total installed capacity of 180 MW, the station began commercial operation in October 2015. Over the past 10 years, it has generated over 4.2 billion kilowatt-hours of electricity, supplying power to approximately 780,000 people and making a significant contribution to the energy stability of northern Laos. In 2022, it was awarded the Second-Class Labor Medal, a national honor of Laos.
This Open Day event was based on the CWE’s “Lancang Mekong Green Course” brand project, focusing on local university students and youth. Five thematic modules were designed around the station’s 10th anniversary: Practical Class, Research Class, Science Class, Activity Class, and Culture Class. A photo exhibition titled “10 Years of Development of Nam Ngiep 2” was also set up, showcasing the station’s construction milestones, operational management, environmental protection efforts, and community engagement practices.CWE held “Lancang Mekong Green Course” Open Day.jpeg
Led by Chinese and Lao engineers, participants engaged in immersive learning through practical, research, and science classes. These sessions helped local youth gain a hands-on understanding of hydropower generation, the multifunctional role of water conservancy projects, and the technological innovations within China-Laos joint projects. A “Decade Together” sharing session featured long-serving employees from both countries who shared personal stories of growing alongside the project—encouraging young students to pursue careers in clean energy.
Polin Xuangmany, a student from the Faculty of Engineering at the National University of Laos, said: “This event taught me so many things beyond the textbooks. I saw firsthand how the station operates and felt the commitment of Chinese enterprises to social responsibility and ecological protection. It’s an honor to witness this important 10-year milestone in person.”
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In the Activity Class, the station worked with the local government to organize eco-friendly activities such as tree planting and fish fry release. Around 2,000 saplings—including mango and longan—were planted, and approximately 100,000 juvenile fish such as tilapia and crucian carp were released, reinforcing the station’s commitment to green development and community engagement. The government of Phaxay awarded the station an “Ecological Protection Honor Certificate for the Mekong River Basin.” County Chief Khamla Keodavanh commented:
“Nam Ngiep 2 not only provides stable and clean power to Laos, but also protects the river basin's ecosystem through activities like tree planting and fish release. This honor is the best recognition of its commitment to sustainable development.”
During the Culture Class, students were invited to experience traditional Chinese cuisine. Under the guidance of the station’s staff, they learned to wrap sticky rice dumplings (zongzi), roll rice balls (tangyuan), make dumpling wrappers, and prepare green rice cakes (qingtuan). The festivities also included a Chinese hotpot meal and a celebratory cake to mark the station’s 10th “birthday”, creating a joyful and festive atmosphere.
Throughout the event, students actively posted their experiences and “highlight moments” on international social media platforms, attracting widespread attention and engagement from local youth. The event-related content reached over 350,000 views online. Local media outlets also covered the event live.
Over the years, the hydropower station has brought tangible economic, social, and environmental benefits to local communities by building infrastructure, supporting resettlement villages, and preserving cultural heritage. Village chief Vilaiphone Khoudsavanh from Poung Village shared: “Ten years ago, due to our remote location and difficult terrain, our village was the only one in Xiengkhuang Province without electricity. With continuous support from Nam Ngiep 2, we finally got power. Last year, the station even helped us build our first primary school. Thanks to the station, our children now have a classroom where they can learn in peace. The station has not only brought light to our village, but also hope for the future.”
Serving as a platform for cultural exchange, the “Lancang Mekong Green Course” Open Day vividly showcased the decade-long journey and accomplishments of the China-Laos joint project. It also deepened local youth’s understanding of the green energy sector and opened a new chapter in regional energy cooperation across the Lancang-Mekong region.
Company: China International Water & Electric Corporation
Website: https://english.cwe.cn/
Contact: Xiao Ran
TEL: +86 13146100749
Email: xiaoran@ccccltd.cn
City: Vientiane
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/9287541e-75cd-4d2d-8d74-34ee9f991b95
https://www.globenewswire.com/NewsRoom/AttachmentNg/6e611a32-7995-4611-a727-29b4de3509ff
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- EHang and China Communications Information & Technology Group Partner to Co-Develop Digital and Ground UAM Infrastructure and Empower Low-Altitude Economy Ecosystem
Dec 27, 2024
EHang Holdings Limited
GUANGZHOU, China, Dec. 27, 2024 (GLOBE NEWSWIRE) -- EHang Holdings Limited (Nasdaq: EH) ("EHang" or the "Company"), the world’s leading Urban Air Mobility (“UAM”) technology platform company, today announced a comprehensive strategic partnership with China Communications Information & Technology Group Co., Ltd. ("CCIT") in the fields of the low-altitude economy and advanced air mobility ecosystem.
CCIT is a specialized subsidiary of China Communications Construction Group ("CCCG"), which is a world’s leading comprehensive service provider of extra-large infrastructure. It is also a key technical support unit for major projects and pilot projects under the Ministry of Transport of China. Its main business covers in-depth enterprise digitalization, information industry, system integration and engineering implementation, network security and operations, big data and cloud services, and other fields. In response to the big data services for unmanned aerial vehicles ("UAVs"), CCIT has constructed a comprehensive technical total solution and a systematic commercial service process. As part of the collaboration, CCIT will work with various business sectors under CCCG, including China Communications Construction Co., Ltd. ("CCCC", 601800.SH, 01800.HK), to partner with EHang to co-develop digital UAM infrastructure and transportation hubs, innovate UAV services, as well as establish a commercial operation model and comprehensive support system for the low-altitude economy, driving innovative development within the sector.EHang and CCIT Strategic Cooperation Signing Ceremony
(Image: EHang and CCIT Strategic Cooperation Signing Ceremony)
Building Digital UAM Infrastructure: Laying the Foundation for the Low-Altitude Economy
Through this strategic partnership, EHang and CCIT will collaborate on advancing the research and development, planning and construction of digital UAM infrastructure, while also promoting integrated innovations of the low-altitude economy industry. The two parties will combine their respective technological expertise and industrial experience to incorporate digital technologies such as 5G, 6G, satellite communications, sensing, and high-precision navigation into the low-altitude aviation industry. These initiatives target creating an intelligent low-altitude platform that integrates five key networks: air traffic infrastructure network, aerial route network, communications and navigation network, airspace management network, and low-altitude service network.
Both parties will also work together to promote local governments in China for planning and construction of flight data centers, dedicated communications networks, and integrated flight take-off and landing platforms, with EHang providing operational services.
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By pooling their high-quality industry resources, EHang and CCIT will jointly create platforms of low-altitude economy for research and innovation, digital industry investment, digitalized joint operations, and ecosystem development. Additionally, both companies will work together to drive the global development of advanced air mobility and low-altitude economy industries, contributing to China’s "Belt and Road" initiative and the interconnected development of a four-dimensional transportation network covering land, sea, air, and digital infrastructure.
Developing UAM Hubs: Targeting "100 Cities" and "100 Scenic Spots" for Comprehensive Low-Altitude Harbors
Leveraging CCCC's extensive infrastructure construction capabilities across China, this strategic cooperation will actively foster partnerships with local governments and EHang’s regional low-altitude business operators. The partnership will deliver comprehensive industrial solutions for UAM infrastructure, ranging from planning and design to construction and operations. This collaboration will advance the rapid deployment and operation of low-altitude economy initiatives in major cities, coastal regions, and major economic zones across China.
CCIT plans to introduce a comprehensive one-stop solution for low-altitude super IP projects that integrate "land + space + content" in a three-dimensional approach, aiming to construct assemble-style and modular low-altitude flight terminals in places such as central parks and the rooftops of multi-level parking structures. EHang will work with CCIT in the planning and development of infrastructure that combines both parking and terminal functions within cities. Together, they aim to establish a standardized and replicable air traffic pilot program and drive the development of revolutionary, multi-level transportation hubs that will serve as a model for advanced intermodal transfer systems.
In the fields of low-altitude tourism and UAM, both parties plan to jointly develop 100 intra-city and inter-city comprehensive air traffic terminals and 100 low-altitude tourism terminals in National 5A Scenic Areas over the next three years since 2025. CCIT and EHang will collaborate to establish city-level low-altitude air mobility service systems (E-Port terminals) and jointly operate a fully integrated low-altitude economic demonstration zone. Several cities in China have reached cooperation intentions with EHang and CCIT to participate in the construction of a comprehensive low-altitude service system centered around culture, tourism, transportation, and emergency services. The two parties will also jointly expand the aircraft sales and leasing market and explore the integrated operations in the "transportation + tourism" industries.
Establishing a Full-Chain Innovation Service Platform: Driving Sustainable Growth within the Low-Altitude Economy
To foster the sustainable development of the low-altitude economy, both parties will explore the establishment of a dedicated fund, a research institute and a vocational training academy for the low-altitude economy industry. Together, they will also plan to set up and operate innovation service hubs in major cities across China, incubating upstream and downstream enterprises while cultivating a skilled talent pool to support the rapid growth of the low-altitude economy.
Hang Yuan, Chairman of CCIT, remarked: "EHang is a leading enterprise in the UAM industry, providing excellent products and solutions to customers in various fields globally, covering applications such as air mobility (passenger-carrying and logistic), smart city management, and low-altitude emergency rescue. Both sides have a solid foundation for cooperation and broad development prospects. We hope that this partnership will serve as an opportunity to fully leverage our respective professional strengths, establish a good cooperation mechanism, focus on the construction of air mobility hubs and innovation in low-altitude economic service scenarios, and inject new impetus into the innovative development of the low-altitude economy industry."
Zhao Wang, EHang's Chief Operating Officer, stated: "We are very pleased to establish a long-term strategic partnership with CCCG. It’s a crucial step for EHang in forming a low-altitude economy industrial ecosystem. Together, we look forward to advancing the deep integration of digital infrastructure and low-altitude aviation industry, and accelerating the construction of a smart low-altitude new infrastructure system. Upon this foundation, we will comprehensively, deeply, and innovatively apply our technologies, products, and operational management systems in various air traffic flight scenarios, empower the construction and sustainable development of the industrial ecosystem, and inject new momentum into the high-quality development of the low-altitude economy."
About EHang
EHang (Nasdaq: EH) is the world’s leading urban air mobility (“UAM”) technology platform company. Our mission is to enable safe, autonomous, and eco-friendly air mobility accessible to everyone. EHang provides customers in various industries with unmanned aerial vehicle (“UAV”) systems and solutions: air mobility (including passenger transportation and logistics), smart city management, and aerial media solutions. EHang’s flagship product EH216-S has obtained the world’s first type certificate, production certificate and standard airworthiness certificate for pilotless eVTOL issued by the Civil Aviation Administration of China. As the forerunner of cutting-edge UAV technologies and commercial solutions in the global UAM industry, EHang continues to explore the boundaries of the sky to make flying technologies benefit our life in smart cities. For more information, please visit www.ehang.com.
About China Communications Information & Technology Group
China Communications Information & Technology Group Co., Ltd. (“CCIT”) is a specialized subsidiary of China Communications Construction Group (“CCCG”), a Global Fortune 500 company. CCIT was established to drive the digital transformation of CCCG and focus on strategic emerging industries. It is a model enterprise for the state-owned enterprise reform "Double Hundred Action," a national high-tech enterprise, and a key technical support unit for major projects and pilot programs under the Ministry of Transport. Additionally, CCIT is a member of the Ministry of Transport’s Beidou Application Leadership Group and serves as Vice Chairman of the China Satellite Mobile Application Development Committee. It is also the only construction sector central state-owned enterprise with a "Beidou Operation Qualification." In the low-altitude economy sector, CCIT focuses on the UAV industry, building a comprehensive ecosystem that spans urban management, express logistics, geospatial surveying, agricultural and forestry protection, and emergency rescue.
About China Communications Construction Group
China Communications Construction Group (“CCCG”) is a leading global comprehensive service provider for extra-large infrastructure, mainly engaged in the investment, construction, and operation of transportation infrastructure, equipment manufacturing, and urban comprehensive development. With a history of over a century, CCCG's products and services are present in more than 150 countries worldwide. It is currently the world's largest port design and construction company, the world's largest road and bridge design and construction company, the world's largest dredging company, the world's largest container crane manufacturing company, a global leader in the design of offshore drilling platforms and equipment provider; it is also the largest international engineering contracting company in Asia and the largest highway investor in China. China Communications Construction Company (“CCCC”, 601800.SH, 01800.HK), listed in both Hong Kong and Shanghai, is a subsidiary of CCCG that primarily operates in the infrastructure sector.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Statements that are not historical facts, including statements about management’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to those relating to certifications, our expectations regarding demand for, and market acceptance of, our products and solutions and the commercialization of UAM services, our relationships with strategic partners, and current litigation and potential litigation involving us. Management has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While they believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond management’s control. These statements involve risks and uncertainties that may cause EHang’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.
Media Contact: pr@ehang.com
Investor Contact: ir@ehang.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f8ef7aa0-32db-41db-a38e-0a6584489cad
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- The US is concerned with blacklisted Chinese firm's hand in island-building near its Manila embassy
Aug 2, 2023
MANILA, Philippines (AP) — The United States has expressed concerns over major land reclamation projects in Manila Bay near its heavily secured embassy due to the involvement of a Washington-blacklisted Chinese company, the U.S. Embassy said Wednesday.
American Embassy spokesperson Kanishka Gangopadhyay said the U.S. also expressed its concerns over the potential environmental impact of the ongoing reclamations in Manila Bay in discussions with Philippine government officials.
Environmental groups have staged protests against the yearslong government-approved reclamations, mostly by real estate companies seeking to build islands on which to anchor upscale hotels, casinos, restaurants and entertainment centers in a bay long notorious for pollution. Others worry that high-rise buildings built on reclaimed land would block ordinary folks' view of Manila Bay’s famous sunset.
"We have expressed concerns about the potential negative long-term and irreversible impacts to the environment, the resilience to natural hazards of Manila and nearby areas, and to commerce,” Gangopadhyay said in a statement.
"We are also concerned that the projects have ties to the China Communications Construction Co., which has been added to the U.S. Department of Commerce’s Entity List for its role in helping the Chinese military construct and militarize artificial islands in the South China Sea,” he said.
There was no immediate comment from Chinese government officials.
Chinese companies that have been placed on the list are restricted from trading with any U.S. firms without gaining a nearly unobtainable special license. China protests the U.S. sanctions as illegal.
The state-owned China Communications Construction Co. has said that one of its subsidiaries, China Harbour Engineering Company Ltd., was involved in a project that includes building three artificial islands at the bay near suburban Pasay city in the capital region.
Washington does not lay a claim to the South China Sea but has said that freedom of navigation and overflight in the strategic passage — where a bulk of the world’s trade transits — and the peaceful resolution of the decades-long disputes were in the U.S. national interest.
China turned at least seven disputed reefs into what are now missile-protected island bases in the past decade, alarming the U.S. and its allies, along with Beijing’s rival claimant states, and intensifying tensions in a region long feared as an Asian flashpoint.
The long-simmering territorial conflicts have become a delicate front in the U.S.-China rivalry. U.S. warships and fighter jets have patrolled the disputed waters to challenge China’s expansive territorial claims, often provoking Chinese warnings for the U.S. to stop meddling in the disputes or face unspecified punitive steps.
- China Regulator’s New Slogan Fuels Buying Spree in State Firms
Nov 24, 2022
(Bloomberg) -- A new term coined by China’s securities chief has investors debating whether it implies a premium for state-owned firms and companies better aligned with national goals.
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A “valuation system with Chinese characteristics” has become the latest buzzwords, after China Securities Regulatory Commission Chairman Yi Huiman devised the term during a speech this week and proposed a new method of valuing state, private and foreign controlled firms.
In his remarks, Yi singled out state-owned enterprises and state-owned financial institutions, saying they accounted for nearly half of the onshore market capitalization, which “shows their pillar role in the economy.”
Markets have taken note, with large SOEs posting big jumps. China Communications Construction Co. surged 10% in each of the past two sessions, China Aluminum International Engineering Corp. soared more than 50% during that period in Hong Kong, while CGN New Energy Holdings Co. gained as much as 22% on Wednesday.
“The emphasis from Chairman Yi has been on financial markets to better support the real economy, and that could pertain to undervalued SOEs,” said Zhang Xia, chief strategist at China Merchants Securities Co. “It could also refer to areas of higher end development that policies are encouraging, such as higher end manufacturing.”
Financial markets may lean toward areas that China is championing, and this could involve a reassessment of how to price SOEs, Zhang added.
China Communications Construction is trading at 6.2 times forward earnings, while China Railway Group is at just over 4 times in Shanghai. That compares with a multiple of 11 for the benchmark CSI 300 Index.
Story continues
Still, some investors say Yi’s remarks may signal a move away from market-oriented reforms and others caution that the rally in SOE stocks is unlikely to last.
“The gains in the handful of SOEs is likely the result of some looking for a new speculative trade in the absence of a clear trend for growth and a lack of real investment opportunities during a time of confusion, rather than buying up these stocks in earnest,” said Zhang Fuzhen, senior analyst at Shanghai PD Fortune Asset Management LLP.
“If this were really about something deeper, like a fundamental shift, the broader gauge of confidence would have taken a much bigger hit,” he said.
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- Chinese Firms Are Dominating Key Parts of Hong Kong’s Economy
Jun 26, 2022
(Bloomberg) -- Half way to the point when Hong Kong will officially be enveloped by China, Beijing is not just calling the shots politically, but in vast swathes of the city’s $344 billion economy.
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From the stock exchange to brokerages, construction projects to the retail sector, Chinese state-controlled firms are increasingly dominating, taking market share away from the local tycoons and British trading houses that thrived under the final decades of UK rule.
Those behind the growing Chinese influence view Hong Kong’s economy as stagnant, slow to embrace the technology-driven, new economy industries that have been catalysts for growth on the mainland. Chinese enterprises have been handed more political power in the city, including a recent revamp of the electoral system that reduced the influence of local businesspeople and added greater representation for state-backed companies.
“Hong Kong has come to a crucial crossroads,” said Simon Lee, a Hong Kong lawmaker and Greater Bay Area chief strategist for China Resources Group, a state-owned conglomerate. “With all these challenges, we need to make sure different voices are included in our policy making and mainland Chinese enterprises need to take greater responsibility in our society, economy and politics.”
While the mainland economy now faces its own host of challenges, and substantial political resistance to Beijing’s overpowering influence remains -- especially among local youth who don’t identify as Chinese -- the mainland-ization of Hong Kong’s business life increasingly looks irreversible.
We take a look at how it’s playing out, sector by sector:
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Finance
Back in 1997, local brokers such as Peregrine and Somerley Capital, along with foreign banks including Morgan Stanley ruled the city’s finance industry. Fast forward to this year, and China International Capital Corp., China Merchants Bank Co. and Citic Securities Co. dominate listings. Almost 100 local brokers have closed over the past four years, battered by competition.
But more worrying for Hong Kong’s status as a gateway to China is that Chinese firms are choosing to raise capital at home, rather than in the city. Shanghai and Shenzhen have seen $37 billion in initial public offerings this year, compared with just $2.4 billion in Hong Kong.
In 1993, Tsingtao Brewery Co. became the first Chinese company to list in Hong Kong, and by 1999 that number had grown to 44, according to the Hong Kong Exchanges & Clearing Ltd. Now the city’s exchange hosts 1,370 mainland firms, accounting for almost 80% of the market’s value.
Chinese firms are catching up to foreign firms in terms of placing their regional headquarters in Hong Kong, more than doubling since 1997. Foreign businesses have also been clamoring for the city to relax its strict quarantine rules imposed over the past three years. In March, a survey by the European Chamber of Commerce showed a quarter of European companies in Hong Kong plan to fully relocate operations out of the city.
Telecommunications
China Mobile Ltd., the mainland’s largest mobile operator, has become a dominant force in Hong Kong since it entered the market in 2006 after acquiring the fourth-largest wireless carrier. Today, the company has the biggest share of commercial mobile airwaves, beating three other competitors controlled by CK Hutchison Holdings Ltd., billionaire Richard Li and Sun Hung Kai Properties Ltd.’s Kwok family. China Mobile is leading in the next generation 5G, holding the largest share of the spectrum along with Li’s HKT Trust & HKT Ltd.
Infrastructure
Hong Kong’s skyline is being increasingly defined by mainland companies, as those firms -– mainly state-owned construction behemoths -- grabbed more and bigger public infrastructure contracts. Last year, mainland firms won 48% of government infrastructure contracts worth more than HK$500 million ($64 million), up from just 8% in 2018, a Bloomberg News analysis of public tendering records found.
Their dominance was even more pronounced for the largest projects. For example, they took 68% of the HK$53 billion construction of the local part of the Hong Kong-Zhuhai-Macao Bridge, including a 12-kilometer (7.46 mile) highway and building an artificial island off the city’s airport. All of Hong Kong’s makeshift hospitals and most of its quarantine facilities for Covid-19 control were also built by state-owned construction companies.
Chinese developers also aggressively snapped land in the middle of the last decade, although the buying spree has lost some of its steam in recent years amid pressure from Beijing to deleverage. One of the biggest buyers was HNA Group Co., which acquired several residential sites in the Kai Tak area in record-breaking deals, only to dispose of them due to debt issues.
On the construction side, state-owned firms such as China State Construction International Holdings Ltd. and China Communications Construction Co. expanded their market share in Hong Kong thanks to their massive capital. This allowed them to offer attractively low prices to the government on builds, said Derrick Pang, chief executive officer of Asia Allied Infrastructure Holdings Ltd., a local construction firm. Homegrown developers often need to rely on bank loans, making them less competitive. And losing past projects also means local companies now lack a good track record, putting them at even more of a disadvantage, Pang said.
“If we don’t have more Hong Kong companies rising to the top, what happens is they will gradually disappear,” Pang said. “Whether this happens in five years, 10 years or 20 years -- it’s just a matter of time. And it will be a similar story in other Hong Kong sectors, not just the construction industry.”
Mainland firms have also been buying up prime office space. In 2017, they occupied almost half of the Central business district’s office space, according to Jones Lang LaSalle Inc. But there has been a slide in demand in recent years, leaving large chunks of empty office space as foreign firms also cut back amid sky-high rents and the chilling effect of the city’s strict pandemic measures.
Retail
For decades, Hong Kong’s retail scene had been ruled by homegrown tycoons. The two dominant supermarket chains are owned by CK Hutchison, the flagship of billionaire Li Ka-shing’s empire, as well as Jardine Matheson Holdings Ltd. Their growth has stagnated in recent years as groups backed by mainland Chinese capital are catching up.
Jardine’s Wellcome supermarket has grown just 2% since 2017 while CK Hutchison’s ParknShop has shrunk 17%. U Select, owned by China Resources, expanded 39%, according to data from Euromonitor International and Bloomberg News. Qiandama, a mainland grocery chain backed by JD.com Inc., entered Hong Kong in mid-2018 and has since opened 50 shops.
China Resources is also Hong Kong’s largest food distributor and sole importer of fresh pork, beef and poultry from the mainland. The city relies on the mainland for more than 90% of its fresh pork supply.
Beijing has been open about its desire to increase its influence in Hong Kong, especially after the unrest in 2019 strained its trust with the local tycoons. Mainland Chinese enterprises should provide for Hong Kong’s livelihood and promote its integration into the nation’s overall development, Yin Zonghua, deputy director of China’s liaison office in Hong Kong, said at an event in December 2021.
Still, there’s one crucial part of the city that is becoming less Chinese: the public.
A survey released last week showed only 29% of residents identified as broadly “Chinese,” down from above 40% just after the handover, according to a poll by the Hong Kong Public Opinion Research Institute. Some 70% identified as Hong Kongers, up from about 60% 25 years ago.
But the survey showed some good news for officials eager to tie Hong Kong closer to the mainland, the residents identifying as “Chinese” has rebounded from a low in 2020.
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- 15 Most Valuable Government-Owned Companies in the World
Feb 21, 2022
In this article, we will discuss the 15 most valuable government-owned companies in the world. You can skip our detailed analysis of these companies, and go directly to 5 Most Valuable Government-Owned Companies in the World.
Created by governments in order to partake in commercial activities on their behalf, government-owned companies (GOCs) are legal entities that are typically earmarked to participate in specific commercial activities. Apart from commercial ventures, GOCs are also involved in selling physical resources, mostly to trading bodies and other companies, and management of government resources, providing an avenue to governments through which they can be accountable for extractive resources. Their legal status can be varied, from being part of a government to stock companies with a state as a regular stockholder. Government-owned companies have become increasingly prevalent across the globe, especially prolific in countries like China, New Zealand, Saudi Arabia, South Africa, India, Russia, and the United States, where the number is in the thousands.
Major players in multiple economies, government-owned companies take up 55% of the total infrastructure investments in emerging and developing economic markets. Many GOCs operate globally, as multinationals, with shares among the 2000 largest corporations doubling 20% over the last decade, due to the rise of government-owned corporations in emerging markets. According to the International Monetary Fund (IMF), the value of government-owned companies' assets worldwide is reported to be $45 trillion as of 2020, the equivalent of half the global GDP. Some of the largest government-owned companies include Freddie Mac Company (OTC:FMCC) and Fannie Mae Company (OTC:FNMA) in the United States, Saudi Aramco (XSAU:2222.SR) in Saudi Arabia and Eskom Holdings SOC ltd in South Africa, among others. Many public transportation systems and utilities are provided by government-owned companies, alongside multiple postal services and mining operations.
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Our Methodology
Let us now look towards the 15 most valuable government-owned companies in the world. The following list ranks the most valuable government-owned companies according to their total assets for the year 2020, and makes use of the revenue generated for that same year.
15. China National Offshore Oil Corporation
Total Assets: $111.69 billion
Headquartered in Beijing, China National Offshore Oil Corporation (CNOOC) is one of the largest national oil companies in the People's Republic of China, with a focus on the exploration and development of crude oil and natural gas in offshore China. The CNOOC Group has 6 key business segments: exploration and development of oil and gas, technical services, chemical and fertilizer production, power generation, and insurance services. As of 2020, the company reported revenues amounting to $24.08 billion and ranks among the Fortune Global 2000 companies. With total assets of $111.69 billion, China National Offshore Oil Corporation ranks 15th on our list of the most valuable government-owned companies in the world.
14. Federal Deposit Insurance Corporation
Total Assets: $118.6 billion
The Federal Deposit Insurance Corporation is a United States government-owned corporation, which provides deposit insurance to depositors in American commercial banks as well as savings banks. As of 2019, the Federal Deposit Insurance Corporation provided deposit insurance at over 5,256 institutions within the US. The FDIC also observes and regulates certain financial institutions for safety and soundness, alongside performing consumer protection operations and managing the receiverships of failed banks.
13. Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR)
Total Assets: $190 billion
Headquartered in Rio De Janeiro, Brazil, and known through its acronym Petrobras, Petroleo Brasileiro SA (NYSE:PBR) is a Brazilian government-owned multinational corporation specializing in the petroleum industry.
The company operates in several sectors, including the refining and marketing sector, which overlook the logistics and trading operations of crude oil and products, exploration and production sector, involved with the development and production of crude oil and liquified natural gases (LNG) in Brazil and internationally, as well as the gas and power sector, responsible for the trading of natural gases, alongside the trading and generation of electric power. As of 2020, Petrobras reported crude oil production of nearly 2.27 million barrels per day, a 4% increase from the previous year.
12. China Communications Construction Company (HKSE:1800.HK)
Total Assets: $200 billion
China Communications Construction Company (HKSE:1800) is a majority government-owned, publicly-traded, multinational construction and engineering corporation involved primarily in the design, construction, and management of infrastructure and assets, including highways, airports, marine ports, high-speed railways, and subways. As of 2020, the corporation employed over 133,000 people, with over 7.4% working as technicians.
11. Canada Mortgage and Housing Corporation
Total Assets: $240.64 billion
Headquartered in Ottawa, Ontario, Canada Mortgage and Housing Corporation (CMHC) is a Canadian government-owned company and is the largest Crown Corporation in Canada. The corporation's primary objectives include providing mortgage liquidity, providing assistance in affordable housing developments, and presenting insight, information, and advice to the Canadian government and the Canadian housing industry. As of 2020, CMHC reported 94,000 housing units purchased across Canada through the corporation's homeowner insurance products and over 173,647 rental housing units insured.
10. China Mobile Limited (HKSE:0941.HK)
Total Assets: $250 billion
China Mobile Limited (HKSE: 0941) is a Chinese government-owned company that provides communication services in all 31 provinces, autonomous regions and directly administered municipalities across mainland China and Hong Kong, boasting the largest communications customer base in the world, with over 942 million mobile customers in 2020 and 210 million wireless broadband customers in 2020. The company's operations focus mainly on mobile voice and information services, provision of wireless broadband, and communication services.
9. Electricite de France S.A (EPA: EDF.PA)
Total Assets: $361.80 billion
Electricite de France S.A (EPA: EDF), commonly referred to as EDF, is a French multinational electric utility company that is largely owned by the State of France. Headquartered in Paris, EDF operates a varied portfolio of 120+ Gigawatts of energy generation capacity throughout Europe, North America, South America, Asia and Africa. Specializing in electrical engineering and distribution, with operations including electricity generation, energy trading, alongside power plant design and construction. Its power generation technologies range from nuclear energy, solar energy, biomass, hydropower and geothermal energy, among others.
8. China National Petroleum Corporation
Total Assets: $390 billion
Headquartered in the Dongcheng district of Beijing, China National Petroleum Corporation (CNPC) is a major government-owned company with governmental administrative functions, involved in the oil and gas industries. The parent company of the second-largest oil producer in the country, PetroChina (NYSE: PTR), CNPC operates over 26 refineries with a combined processing capacity of 152 million tonnes per year, with overseas production activities spread across 38 countries in Africa, South America, and the Asia-Pacific.
7. Saudi Arabian Oil Company (XSAU:2222.SR)
Total Assets: $510.4 billion
The Saudi Arabian Oil Company (XSAU: 2222), also known as Saudi Aramco, is headquartered in Dhahran. One of the largest companies in the world based on revenue and market capitalization, the company not only has the world's second-largest proven crude oil reserves but also the largest daily oil production of all oil-producing companies in 2020. Managing over 100 oil and gas fields in Saudi Arabia, the company owns 288.4 trillion cubic feet of natural gas reserves and is ranked as the 5th largest public company in the Fortune Global 2000 list of 2020.
6. State Grid Corporation of China
Total Assets: $680 billion
Commonly known as State Grid, the State Grid Corporation of China is a China government-owned electric utility company headquartered in Beijing. State Grid distributes electricity in over 26 provinces, covering around 88% of the Chinese national territory and serves approximately 1.1 billion people in the country.
Click to continue reading and see 5 Most Valuable Government-Owned Companies in the World.
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Disclosure: None. 15 Most Valuable Government-Owned Companies in the World is originally published on Insider Monkey.
- Here’s why China Communications Construction Company Limited’s (HKG:1800) Returns On Capital Matters So Much
Apr 19, 2020
Today we'll evaluate China Communications Construction Company Limited (HKG:1800) to determine whether it could have potential as an investment idea. Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires.
First, we'll go over how we calculate ROCE. Next, we'll compare it to others in its industry. Last but not least, we'll look at what impact its current liabilities have on its ROCE.
Understanding Return On Capital Employed (ROCE)
ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business. All else being equal, a better business will have a higher ROCE. Overall, it is a valuable metric that has its flaws. Renowned investment researcher Michael Mauboussin has suggested that a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'.
So, How Do We Calculate ROCE?
The formula for calculating the return on capital employed is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
Or for China Communications Construction:
0.048 = CN¥29b ÷ (CN¥1.1t - CN¥526b) (Based on the trailing twelve months to December 2019.)
So, China Communications Construction has an ROCE of 4.8%.
Check out our latest analysis for China Communications Construction
Does China Communications Construction Have A Good ROCE?
When making comparisons between similar businesses, investors may find ROCE useful. We can see China Communications Construction's ROCE is meaningfully below the Construction industry average of 12%. This performance could be negative if sustained, as it suggests the business may underperform its industry. Separate from how China Communications Construction stacks up against its industry, its ROCE in absolute terms is mediocre; relative to the returns on government bonds. Investors may wish to consider higher-performing investments.
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We can see that, China Communications Construction currently has an ROCE of 4.8%, less than the 7.1% it reported 3 years ago. Therefore we wonder if the company is facing new headwinds. You can click on the image below to see (in greater detail) how China Communications Construction's past growth compares to other companies. SEHK:1800 Past Revenue and Net Income April 19th 2020
When considering this metric, keep in mind that it is backwards looking, and not necessarily predictive. ROCE can be misleading for companies in cyclical industries, with returns looking impressive during the boom times, but very weak during the busts. ROCE is only a point-in-time measure. What happens in the future is pretty important for investors, so we have prepared a freereport on analyst forecasts for China Communications Construction.
What Are Current Liabilities, And How Do They Affect China Communications Construction's ROCE?
Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. Due to the way the ROCE equation works, having large bills due in the near term can make it look as though a company has less capital employed, and thus a higher ROCE than usual. To counteract this, we check if a company has high current liabilities, relative to its total assets.
China Communications Construction has total assets of CN¥1.1t and current liabilities of CN¥526b. As a result, its current liabilities are equal to approximately 47% of its total assets. China Communications Construction has a medium level of current liabilities, which would boost its ROCE somewhat.
The Bottom Line On China Communications Construction's ROCE
Unfortunately, its ROCE is still uninspiring, and there are potentially more attractive prospects out there. Of course, you might also be able to find a better stock than China Communications Construction. So you may wish to see this freecollection of other companies that have grown earnings strongly.
For those who like to find winning investments this freelist of growing companies with recent insider purchasing, could be just the ticket.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
- China Communications Construction Co., Ltd. -- Moody's affirms China Communications Construction Co's ratings; revises outlook to negative
Apr 17, 2020
Moody's Investors Service has affirmed the A3 issuer rating of China Communications Construction Co., Ltd. (CCCC). Moody's has also affirmed the Baa1 ratings of the subordinated perpetual notes and the A3 rating of the senior unsecured perpetual notes issued by CCCI Treasure Limited and guaranteed by CCCC. At the same time, Moody's has changed the outlook on these ratings to negative from stable.
