In 2008, 29 listed companies of TX construction industry achieved operating revenue of Rmb617.07bn (+27.2% yoy), net profit attributable to owners of parent of Rmb9.39bn (-9.3% yoy). Industrial business turnover maintained steady growth in 2008, and net profit slid, which was mainly due to impact of huge exchange loss between China Railway Group (601390) and China Railway Construction (601186); if this element deducted, industrial net profit attributable to parent grew by ~39.1% yoy in 2008, which was faster than business turnover acceleration.
Generally, construction sector saw explicit growth in 2009 and major companies owned apparent advantages, thus we maintain “Overweight” rating for the industrial counter.