Today (February 16), the infrastructure sector once again rushed to the market outlet, and individual stocks also set off a wave of daily limit. As of the closing, the sector index rose by more than 4%. In terms of individual stocks, Hangzhou Landscape Architecture Design Institute Co.Ltd(300649) , Hanjia Design Group Co.Ltd(300746) , Hualan Group Co.Ltd(301027) 20cm limit, Palm Eco-Town Development Co.Ltd(002431) , Suzhou Thvow Technology Co.Ltd(002564) , Chengdu Road & Bridge Engineering Co.Ltd(002628) , Chengbang Eco-Environment Co.Ltd(603316) , Yuancheng Environment Co.Ltd(603388) , Shenzhen Qixin Group Co.Ltd(002781) , Zhengping Road & Bridge Construction Co.Ltd(603843) , Zhejiang Construction Investment Group Co.Ltd(002761) , Huitong group and other nearly 20 stocks rose. Among them, Zhengping Road & Bridge Construction Co.Ltd(603843) was promoted to 5-board, Zhejiang Construction Investment Group Co.Ltd(002761) won 8-day 7-board, Huitong group won 8-day 6-board, and China Haisum Engineering Co.Ltd(002116) won 8-day 5-board.
Zhejiang Construction Investment Group Co.Ltd(002761) returned to popularity and Zhengping Road & Bridge Construction Co.Ltd(603843) promoted to the Fifth Board
Since the festival, the performance of the infrastructure sector has continued to shine. As of today (February 16), the sector index (taking the engineering construction sector as an example) has increased by more than 17%, and nearly half of the component equity has increased by more than 15% since the month. Among individual stocks, Zhejiang Construction Investment Group Co.Ltd(002761) rose 103% this month, Zhengping Road & Bridge Construction Co.Ltd(603843) , Hangzhou Landscape Architecture Design Institute Co.Ltd(300649) , Huitong group rose more than 50%, and Chongqing Construction Engineering Group Co.Ltd(600939) , Shenzhen Water Planning & Design Institute Co.Ltd(301038) , Chengbang Eco-Environment Co.Ltd(603316) , Zhejiang Communications Technology Co.Ltd(002061) , China Zhonghua Geotechnical Engineering Group Co.Ltd(002542) rose more than 30%.
Among them, Zhejiang Construction Investment Group Co.Ltd(002761) recently incarnated as the strongest leading stock of infrastructure. After yesterday’s fried board fell, it successfully reversed the limit again today and successfully recorded 7 boards in 8 days. It is reported that the company’s business scope covers construction, design, investment, industrial manufacturing and professional services. Driven by the investment logic of steady growth in infrastructure construction, the share price has been boosted to a new high. In the eight trading days since the festival, the share price has doubled. In addition, the concept of Hangzhou Asian Games and the demonstration area of high-quality development and construction of common prosperity in Zhejiang have also added a fire to the hot market of Zhejiang Construction Investment Group Co.Ltd(002761) .
Water conservancy concept stocks led by Zhengping Road & Bridge Construction Co.Ltd(603843) also had a strong trend recently. As of today’s closing, Zhengping Road & Bridge Construction Co.Ltd(603843) recorded five consecutive boards. In terms of news, the relevant person in charge of the planning and Planning Department of the Ministry of water resources recently said that the construction of 150 major water conservancy projects in 2020 and the follow-up determined by the State Council is accelerating, including five types of projects such as flood control and disaster reduction, optimal allocation of water resources, irrigation water saving and water supply, water ecological protection and restoration, and intelligent water utilization. Some analysts predict that the construction of underground pipe network and sponge city will bring sustainable increment during the 14th Five Year Plan period.
policy warm air continues to heat up, and the Organization recommends five industrial chains
Under the recent favorable policies, the infrastructure sector with the concept of stable growth has become one of the hot main lines in the market, and its sub sectors such as prefabricated construction, water conservancy and building materials have also ushered in an increase. Tianfeng Securities Co.Ltd(601162) pointed out that at the current time point, we continue to be optimistic about the capital construction market in spring: 1) at present, it is a rare capital construction boom cycle with complete demands of projects + funds + local governments, and the growth rate of capital construction investment is expected to exceed expectations; 2) The performance of local state-owned enterprises is highly flexible and gradually recognized by the market; 3) The REITs policy was significantly promoted, and the valuation of infrastructure central enterprises with more operating assets ushered in the opportunity to repair.
In addition, the dual carbon oriented generalized new infrastructure has also become a hot spot in the market, Gf Securities Co.Ltd(000776) pointed out that a major focus in 2022 is the generalized new infrastructure, which is the expansion of the connotation and extension of the new infrastructure by “dual carbon”, in which the construction of new energy and power grid is the focus. Specific driving industrial chains include: new energy infrastructure, new energy power generation (photovoltaic, wind power, BIPV), new energy storage and pumped storage, UHV and smart grid; Clean the supporting infrastructure of low-carbon vehicles, including charging piles, filling (gas) stations, hydrogenation stations, etc; Low carbon, zero carbon, negative carbon and new energy storage materials, new technologies, new equipment, etc.
Citic Securities Company Limited(600030) also believes that under the tone of stable growth, infrastructure investment is expected to underpin the economy. Taking into account the capital factors such as special debt and implicit debt supervision of local governments, it is expected to achieve a growth rate of 6.5% throughout the year, and infrastructure REITs is expected to become a potential source of incremental infrastructure funds. The infrastructure industry chain may usher in extreme changes in the basic area. At present, the overall sector is undervalued and low allocation. The infrastructure industry chain companies that benefit from the expected warming of infrastructure development are preferred:
1) cement industry: infrastructure construction makes great efforts to resist the decline of industry demand. The good pattern makes the profit stability of the industry high. High price and low operation rate may become the new normal of the cement industry. It is recommended that China building materials, Anhui Conch Cement Company Limited(600585) , Huaxin Cement Co.Ltd(600801) .
2) construction industry: the construction infrastructure should be developed in multiple directions. Central enterprises and state-owned enterprises play the main role. It is recommended to China State Construction Engineering Corporation Limited(601668) , China Railway Group Limited(601390) , and it is recommended to pay attention to China National Chemical Engineering Co.Ltd(601117) .
3) new power system industry: new power system boosts new infrastructure, double carbon and reverse cycle resonance. It is recommended that Nari Technology Co.Ltd(600406) , Dongfang Electric Corporation Limited(600875) , Suwen Electric Energy Technology Co.Ltd(300982) , Xj Electric Co.Ltd(000400) .
4) digital infrastructure industry: new infrastructure base, digital upgrade, recommended Inspur Electronic Information Industry Co.Ltd(000977) , Sangfor Technologies Inc(300454) , Glodon Company Limited(002410) .
5) power station operation industry: reduce the cost, increase the enthusiasm of wind and solar installation, optimize the market pattern based on the base model, and recommend China National Nuclear Power Co.Ltd(601985) , China Resources Power, Sichuan Chuantou Energy Co.Ltd(600674) .
Big infrastructure fire, this leading stock 7 trading limits! Organization: there may be positive changes in the fundamentals of the infrastructure industry chain
The capital construction sector broke out and many stocks rose by the limit! Executive meeting of the State Council: accelerating the construction of new infrastructure
