Company info: it is principally engaged in the construction and design of transportation infrastructure, dredging, port machinery manufacturing and railway construction business. It is the largest port construction and design company in China, a leading company in road, bridge construction and design, the largest dredging company in China and the 3rd largest in the world. It is also the world's largest container crane manufacturer. Having business mainly in China. Continue to grow its business in Asia, Africa and around the world.

Financial data: excess 35% reveune & profit growth in the past 5 years (strong growth); 4q06 & 2q07 operating profit margin 5.3% & 8.2% (improved); 4q06 return on equity 10.5% & 15.1% (improved); P/E ratio 72 and 07 forward P/E ratio 50 and PEG 1.6 (still too high); 4q06 & 2q07 Debt equity ratio 2.45 & 2.26 (improved)

Sector info: China's GDP growth between 01 to 06 is 11.5%, during the same period, domestic trade & international trade growth 12.2% & 28.1%. Construction & infrastructure development are the facilitator of logistic. China has planned to spent $3.8T in transportation infrastructure in the coming 15 years to bring highway, railway, port and bridge accross province to province. 17th meeting also mentioned they will support and provide tax preference to companies in this sector.

Outlook: it is one of the 1st govt based company successfully walk from China to the world, continue receiving international business will give it strong revenue growth. I also expect operating margin will continue to improve. Also, it opened a new railway division, it will become a strong competitor against China Railway (0390).

Risk: construction company mainly face 2 challenges: 1) project may take years to complete with pre-determined reveune, while raw material cost will flutuate over time, put pressure on cost management & its initial pricing; 2) operating profit margin will be lower than other sectors, any contingecy issue may clause the company turn to a loss position.

Conculsion: Since P/E ratio so high, its current price $20.45 may look a little high, but my target price is $28.0. And I have China Comm Cons in my portfolio.