China State Construction (HKG:3311) has run up well over 25% year-to-date and any retreat would offer enhanced buying opportunities, Citigroup says in its research report.

China State Construction gained new contracts of HK$3.81 billion in January, which equates to 11.5% of the company's full-year target (no less than HK$33 billion) for 2012. But the new contracts value dropped 28% on year owing to a high base last year and slower momentum because of Chinese New Year in Jan 2012. More importantly, order backlog maintained its growth momentum, increasing 31% on year to HK$50.9 billion in January.

The brokerage firm expects China State Construction to report a 43% year-on-year growth in net profit to HK$1.486 billion and EPS of HK$0.41 for 2011 and gives the stock a Buy rating.