Contract Updates for CAEI - Analyst Blog

China Architectural Engineering Inc. (CAEI) received a contact worth $3.2 million from Overseas Chinese Town Group for their Joy Coast project. Per the contract, China Architectural will now implement the design as well as construct the Innovation Exhibition Center, one of the regional landmarks within Joy Coast. The contract is expected to be completed within five months. The company was earlier contracted to provide design and consulting services for this project.

China Architectural also provided reviews on other contracts received on August 16.

• The company expects The Terrace Garden Project in Beijing to be completed by the end of the first quarter of 2011. The project, worth $10.4 million, was received from COSCO Real Estate and Swire Group. The contract requires China Architectural to design, manufacture and construct the structural steel and building envelope of the exhibition hall within the terrace garden of Jiangtai Commercial Center.

• The company won two project contracts from Guangxi Municipal Government in Liuzhou. The projects are together valued at $3.3 million. The contracts entail the construction of metal roofs and walls of both Li Ning Sports Stadium and Li Ning Aquatics Center. These are counted among the top ten construction projects of Liuzhou City.

• The company also won The Xinhai Revolution Museum project, a government contract worth $5.2 million in Wuhan, the capital of Hubei. The company will construct the full curtain wall, including a GRC exterior panel roof system, glass curtain wall system, and stone cladding curtain wall system. The overall building scheme of this memorial museum fuses traditional Chinese and modern architectural technologies.

China Architectural reported a loss of 6 cents during the second quarter of 2010. A decrease in contract revenue due to fewer number of projects along with higher raw material and labor and administrative costs contributed to the loss in the quarter.

Based on the company's technical capabilities and focus on more large-scale design programs, we expect China Architectural to win additional contracts, going forward, thus generating healthy results.

Zhuhai, China-based China Architectural Engineering Inc. specializes in high-end curtain wall systems (including glass, stone and metal curtain walls), roofing systems, steel construction systems, eco-energy saving building conservation systems and related products, for public works and commercial real estate projects.