The heavy position preference of funds in the construction industry continued to increase month on month in Q4 of 2020q. In the fourth quarter of 2021, the total market value of the construction industry held by heavy positions accounted for 0.44%, an increase of 0.04 percentage points over the third quarter, but it is still at a low level over the years; The number of funds held in heavy positions was 690, an increase of 89 quarter on quarter. The proportion of heavy stock market value in the construction industry ranked 23rd among 26 industries, an increase of 1 over the third quarter.
The improvement of shareholding preference benefits from the large benefits of construction companies under the steady growth policy. In 2022, the policy direction of steady growth was determined, infrastructure construction became the main focus, and the construction industry benefited greatly. Excellent companies have abundant orders and an increasingly friendly investment and financing environment, which ensures the implementation of orders and the growth of the company’s performance, and brings new opportunities for development.
Professional engineering, infrastructure and steel companies are favored, and real estate related companies are reduced. 1. The number of shares held by professional engineering central enterprises with global competitiveness and the number of heavy position funds have increased, thanks to the promotion of policies such as performance, new development space and “double carbon”. 2. The increase in the number of heavy position funds of infrastructure companies of central enterprises is mainly due to the strong comprehensive competitiveness of infrastructure central enterprises and the steady growth, There are many long-term operating and investment asset projects, and the asset value revaluation is flexible. 3. Local state-owned enterprises with high performance growth and new development direction have strong regional competitiveness and have been increased.
4. Steel structure and enclosure companies benefited from steady growth, and the release of public buildings and policy supported buildings was increased. 5. Companies with a new model of high profitability have benefited from increased holdings, thanks to the fact that municipal is one of the main investment sources of steady growth funds. 6. Due to the tight cash flow of real estate enterprises, the restriction of real estate financing and the decline of prosperity, decoration and real estate business companies were reduced. 7. Local infrastructure state-owned enterprises with poor performance were reduced due to regional limitations.
Investment strategy: combined with the track of steady growth, excellent targets can be selected from bottom to top. Optimistic about the global leader in professional engineering with performance, new development space and benefiting from the “double carbon” policy; We are optimistic about the leaders of central enterprises with strong comprehensive competitiveness and good asset structure in the field of infrastructure, such as China Communications Construction Company Limited(601800) and so on. We are optimistic about local state-owned enterprises with both high performance growth and new development direction, as well as new model companies with high profitability related to steel structure and municipal construction.
Risk tip: the uncertainty and strength of steady growth rhythm are less than expected.
