The start is a sprint and the start is a decisive battle. Since the beginning of this year, all localities have been scrambling to build water conservancy projects. According to preliminary statistics, at present, the investment scale of major water conservancy projects under construction in China exceeds trillion yuan, and the investment scale of water conservancy construction will continue to remain at a high level this year.
Driven by relevant favorable conditions, many shares in the water conservancy construction sector rose by the limit today. In the four trading days since the Spring Festival, the water conservancy sector has been rising every day.
all localities compete to get out of the acceleration of project construction
2022 is the key year for Hainan Maiwan water control project to fully enter the main construction stage, and the construction task is grim and arduous. At present, the executive manager of the gezhouxing bay water conservancy project is working hard to ensure the completion of the project in November 2028, and the deputy manager of the gezhouxing bay water conservancy project said that the gezhouxing bay water conservancy project is under construction according to the 868} plan of the gezhouxing group.
As a province that has been hit by torrential rain, Henan is also one of the most active areas of water conservancy construction. At the beginning of the new year, Henan Provincial Department of water resources issued the notice on doing a good job in the resumption and production of key water conservancy projects, guiding all localities to seize the current favorable construction opportunity, speed up the resumption and production of major water conservancy projects in the province, and ensure the realization of “a good start” and “a good year”.
According to the reporter’s statistics, water conservancy project builders in Jiangsu, Fujian, Shaanxi and other places are seizing the golden period of water conservancy construction in winter and spring, and major projects are under continuous construction during the Spring Festival.
Guotai Junan Securities Co.Ltd(601211) analyst Chen Xianshun said, “China’s water conservancy investment plays a great role in stabilizing growth, expanding domestic demand and stabilizing employment. Under the pressure of steady growth at the beginning of 2022, the construction of major water conservancy projects has accelerated.”
the investment scale of projects under construction has exceeded trillion
The reporter learned that there are two reasons for the rapid progress of local water conservancy projects. First, the reserves of major projects are sufficient and the approval is fast. Li Ming, deputy director of the planning and Planning Department of the Ministry of water resources, said, “the construction of 150 major water conservancy projects determined by the State Council for 2020 and the follow-up is being accelerated. So far, 67 of the 150 major water conservancy projects have been approved and 62 have been started. The investment scale of major water conservancy projects under construction has exceeded 1 trillion yuan.”
Another reason for the rapid progress is that the amount of special debt is sufficient and it is in place early. At the previous regular policy briefing of the State Council, the Ministry of Finance said that it would promote the issuance and use of the quota of 1.46 trillion yuan in advance in the first quarter of this year, so as to form the physical workload as soon as possible. In terms of the investment of special bonds, we will increase support for major projects such as water conservancy and urban pipe network construction.
At present, some projects have received special debt funds. Tongzhou District Finance Bureau of Nantong City announced on the 7th that with the issuance of the notice of the ninth batch of special bonds for the public issuance of Jiangsu provincial government bond funds in 2021, the first water conservancy project in the district has been successfully approved with special bond funds. At present, the funds have been successfully allocated to the project construction unit.
With the support of special bonds, more water conservancy projects will be launched in the near future.
high growth in the whole year
Next, many departments will work together to implement the construction funds of water conservancy projects through multiple channels.
Shi Chunxian, director of the planning and Planning Department of the Ministry of water resources, said in an interview that he would strengthen communication and docking with the national development and Reform Commission and the Ministry of finance, and increase water conservancy investment in the central budget and water conservancy development funds of the central government as much as possible.
“The Ministry of water resources will also deepen the reform of the investment and financing system and mechanism of major water conservancy projects and expand the scale of equity and debt financing. At the same time, it will promote the pilot of real estate investment trusts (REITs) in the field of water conservancy and attract social capital to participate in the construction and operation of water conservancy projects.” Shi Chunxian said.
Chen Xianshun believes that in July 2021, the national development and Reform Commission relaxed the pilot field of infrastructure REITs and added water conservancy projects such as ecological protection projects in the Yellow River Basin. The relaxation of policy margin will open up new space for social financing of water conservancy. Overall, “this year’s water conservancy construction funds are abundant and the development force is imminent.”
water conservancy construction benefits these companies
Northeast Securities Co.Ltd(000686) believes that with the implementation of major national water network projects in 2022, it is expected that the national water conservancy construction investment will gradually increase. Focus on Shandong Donghong Pipe Industry Co.Ltd(603856) mainly engaged in municipal and long-distance water pipelines, and Yonggao Co.Ltd(002641) with non real estate business accounting for about 40% and obvious improvement in internal management.
Guotai Junan Securities Co.Ltd(601211) according to the research report, combined with the work deployment of the central government and the Ministry of water resources, water conservancy will focus on the construction of major projects such as national water network and river basin flood control and smart water conservancy in 2022. In terms of medium and long-term planning, during the 14th Five Year Plan period, water conservancy construction will achieve high-quality development from the four investment directions of flood control, water supply, intelligent water conservancy and ecological restoration.
Guotai Junan Securities Co.Ltd(601211) proposed that the development of water conservancy construction is conducive to the fields of construction (Engineering and Design) and building materials (pipe, waterproof and cement), and the regional leaders in southwest, South China and East China have greater flexibility. Intelligent water conservancy recommends China Railway Group Limited(601390) with integration advantages. Recommended Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) , Jsti Group(300284) , China Liansu, Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) , Huaxin Cement Co.Ltd(600801) , China Railway Group Limited(601390) .
