On February 18, China State Construction Engineering Corporation Limited(601668) released the business briefing in January 2022. The company’s total newly signed contracts amounted to 298.8 billion yuan, a year-on-year increase of 13.1%. Orders grew strongly and ushered in a good start under the stable growth market. China State Construction Engineering Corporation Limited(601668) as a central enterprise, we should focus on steady growth and promote high-quality development.
In terms of construction business, the newly signed contract amount was 282.4 billion yuan, a year-on-year increase of 19.4%. Among them, the housing construction business achieved 232.7 billion yuan, a year-on-year increase of 12.6%; Infrastructure business grew strongly, reaching 48.7 billion yuan, a year-on-year increase of 68.1%; The survey and design business achieved 1 billion yuan. In January, the company successively announced the PPP projects of Guanyang Tiane highway, Longsheng Dongzhong highway and Congjiang Rong’an Lipu highway in Guangxi, with a total investment of more than 45.8 billion yuan. The domestic business of the company reached 274.4 billion yuan, a year-on-year increase of 18.2%; Overseas business reached 8 billion yuan, a year-on-year increase of 83.5%. In terms of physical indicators, the total construction area under construction is 1251930000 square meters; The new construction area is 14.4 million square meters; The completed area is 13.62 million square meters.
In terms of real estate business, the contract sales volume was 16.4 billion yuan; The contracted sales area is 850000 square meters. In addition, the company has a total land reserve of 102.07 million square meters at the end of the period, and the land reserve is sufficient.
Since the beginning of the year, many places have released the investment list of major projects in 2022, and a large number of key projects have been started. According to the website of the Ministry of finance, the Ministry of finance has issued a new local debt limit of 1.8 trillion yuan in 2022 in advance, which is expected to focus on infrastructure construction related fields, especially new infrastructure construction. With the gradual development of the “steady growth” policy, China State Construction Engineering Corporation Limited(601668) enterprises’ newly signed contracts will maintain growth as a whole, and the leading central construction enterprises will benefit significantly.
Some analysts believe that infrastructure investment is expected to maintain rapid growth this year. Driven by the “two new and one heavy”, special debt and economic recovery, and due to the low base in the past, infrastructure investment is expected to achieve rapid growth and provide good opportunities for the development of the industry.
In recent years, the order and income concentration of construction central enterprises and state-owned enterprises related to infrastructure has increased significantly. As the main force of infrastructure investment, it is expected that the head construction central enterprises and state-owned enterprises will bear more responsibilities in the steady growth, and the industry is expected to usher in the accelerated increase of concentration under the pressure of customer credit risk and raw material price rise in 2021. China State Construction Engineering Corporation Limited(601668) as a typical representative object, it deserves close attention. (Hu Yan)
