Event: on February 22, Document No. 1 "opinions of the CPC Central Committee and the State Council on doing a good job in the key work of comprehensively promoting rural revitalization in 2022" was released. From the perspective of building materials and architecture, we believe that the directions directly related include "food security + cold chain logistics", "county rural consumption upgrading", "rural green development", etc.
Strictly abide by the bottom line of food security and promote the construction of cold chain logistics:
This opinion puts forward "firmly hold the two bottom lines of ensuring national food security and avoiding large-scale poverty return", and refers to "deeply implement the high-quality grain project and improve the unit yield and quality of grain" and "promote the extension of cold chain logistics service network to rural areas, promote the construction of cold chain logistics facilities for storage and preservation of Shenzhen Agricultural Products Group Co.Ltd(000061) origin in the whole county, and promote cooperation, joint operation and network supporting". The directly related targets include [ Cofco Engineering & Technology Co.Ltd(301058) ]. The company was formerly a research institute under the Ministry of grain, which specializes in grain and oil processing, grain storage and logistics technology. It has strong technical strength and rich engineering experience. The policy environment is friendly, and the company is expected to fully benefit from this round of food security + cold chain logistics construction.
Expand rural consumption, improve quality and upgrade, and pay attention to the sinking brand of consumer building materials:
Previously, the notice on doing a good job in promoting consumption in the near future was issued on January 16, which mentioned that "guide production enterprises to actively develop daily consumer goods, large household appliances, building materials, furniture and cars suitable for the rural market, and promote the upgrading of rural durable consumer goods", The opinions on the key work of Rural Revitalization once again mentioned "implementing the action of County commercial construction to promote the expansion and upgrading of rural consumption". Quality consumption into the countryside, the building materials brand committed to channel sinking and brand "entering the countryside" in the early stage is expected to obtain the first mover advantage. Relevant targets include sector [ Dehua Tb New Decoration Material Co.Ltd(002043) ], which has been intensively distributed in recent years, sinking villages and towns, and vigorously developing channels for local furniture factories; Pipeline [ Zhejiang Weixing New Building Materials Co.Ltd(002372) ] [China Liansu], the customer unit price of home decoration pipeline and waterproof products is low, the price sensitivity of end consumers is low, and brand products are easier to sink. Liansu expands the agricultural field and Weixing continues to distribute and develop, which all benefit from the acceleration of rural pipe network construction and the upgrading of consumption capacity; Others include [ Monalisa Group Co.Ltd(002918) ] for ceramic tiles, [ Skshu Paint Co.Ltd(603737) ] for coatings and [ Guangdong Kinlong Hardware Products Co.Ltd(002791) ] for county economy.
Strengthen the construction of water conservancy infrastructure:
This opinion refers to "repairing agricultural and water conservancy infrastructure damaged by floods" and "strengthening the construction of monitoring and early warning system for agricultural, rural, water conservancy and meteorological disasters". Strengthen the construction of water conservancy infrastructure and water conservancy system. Relevant targets include [ Anhui Construction Engineering Group Corporation Limited(600502) ]. The company started with water conservancy projects, and the orders for water conservancy in 2021q4 were 2.132 billion yuan, an increase of 87% at the same time, with a significant increase; [ Guangdong No.2 Hydropower Engineering Company Ltd(002060) ], the leader of water conservancy and hydropower projects in Guangdong Province, with rich experience in project construction and construction.
Risk warning: policy promotion is not as expected; The change of macro policy environment is less than expected; Raw material prices fluctuated less than expected.
