China State Construction (3311) Lowering PT on softer China infra momentum

研报英文原文证据摘录

China State Construction (3311) Lowering PT on softer China infra momentum

Asia Pacific Equity Research

26 June 2026

China State Construction

Neutral

(3311) 3311.HK, 3311 HK

Price (26 Jun 26): HK$7.02

Lowering PT on softer China infra momentum

▼ Price Target (Dec-27): HK$8.00

Prior (Dec-26): HK$9.00

China CSCI remains a Neutral, with income support offsetting softer China

growth visibility. We revise our price target to HK$8.0, down 11%, and Infrastructure, Industrials &

roll forward the PT end-date to Dec-27, reflecting weaker sentiment Transport

ACtowards traditional infrastructure names and a softer China domestic Jenny Qiu, CFA

infrastructure Fixed Asset Investment (FAI) backdrop. Our earnings (852) 2800 8503

estimates are unchanged, and we continue to expect no earnings growth jenny.qiu@jpmorgan.com

in 2026E, leaving the investment case more yield-led than growth-led. Karen Li, CFA

We do not move to Underweight, as the stock’s ~9% dividend yield (852) 2800-8589 karen.yy.li@jpmorgan.com

provides a valuation floor. The dividend yield spread versus the US 10- Sunny Su

year government bond yield is now around 550bps, notably above the (852) 2800 8551

c280bps historical average, which we believe should help anchor sunny.su@jpmorgan.com

valuation even as re-rating upside remains limited. Mufan Shi

(852) 2800-8502

• China infrastructure softness creates a less supportive backdrop. mufan.shi@jpmorgan.com

China infrastructure FAI has weakened materially in recent months, J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

with May 2026 infrastructure FAI contracting 9% Y/Y after a similar

decline in April. The contraction appears partly driven by slower- Style Exposure

than-expected front-loading of government bond issuance and fiscal