China Machinery Engineering's new projects to hit US$6-7b per year

It's entering a high-growth stage.

According to CIMB, CMEC's target price is set at 9x 1-year forward P/E, which represents a 40% discount to the historical average of international peers. 

The discount reflects CMEC’s exposure in high-risk markets.

CMEC, an international engineering contractor with over three decades of operational history, is involved in the construction of power, transportation and telecommunications infrastructure and the trading business in both domestic and international markets.

Here's more from CIMB:

Join Hong Kong Business community

With a focus on developing countries in Asia and Africa where infrastructure is severely needed, CMEC is well-placed to tap into the tremendous potential presented by the hundreds of billions of dollars of infrastructure needed per year by the two continents. 

Leveraging China’s success in infrastructure construction, machinery production and the government’s close ties with developing countries, CMEC enjoys advantages in project bidding and negotiations. Its experience in project management and business model give it good profitability and investment returns, evident from its high ROE.

As at 30 Jun 2012, CMEC had US$18.7bn worth of backlog orders and projects in the pipeline. It will enter a high-growth stage in the next few years as it starts executing these contracts. We expect new projects to stay at US$6bn-7bn per year, driving CAGRs of 19.4% for revenue and 28.4% for EPS in FY11-14.  

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Retail sales rebound in May on improved consumption market
Total retail sales value increased by 2.4% year-on-year to $31.3 billionThe value of total retail sales in May 2025 is estimated at $31.3 billion, a 2.4% increase year-on-year(YoY) according to the Census and Statistics Department (C&SD).The figure improved from the 2.3% YoY drop in April. For the first five months combined, the value of total retail sales decreased by 4% YoY.
Retail