China Communications Construction Co., the country's top ports builder, plans to expand its nascent railway construction and heavy marine machinery manufacturing arms after its US$2.1 billion Hong Kong IPO.

The firm hopes to ride China's plan to invest 3.8 trillion yuan (US$485 billion) on transport-related infrastructure under its eleventh Five-Year Plan ending 2010 -- about 73 percent more than the 2.2 trillion yuan spent under the previous half-decade.

The corporation hopes to count those two divisions among its future growth engines. China boasts one of the world's busiest railways and the new business would improve gross margins, Meng added.

The company, which is involved in infrastructure construction, design, dredging and port machinery manufacturing, is offering 3.5 billion shares at HK$3.40 to HK$4.60 apiece, representing 13.4 to 18.2 times its 2006 forecast weighted average earnings. Its trading debut is set for Dec. 15.

Beijing-based China Communications Construction is also one of the largest road and bridge builders in China, in terms of construction contracting revenue. The infrastructure construction segment accounted for 60.4 percent of the company's revenue in the first half of this year. The company has forecast its 2006 net profit would come to at least 2.8 billion yuan, an increase of 28 percent from last year.

Source:佚名