1. The Political Bureau of the CPC Central Committee held a meeting this week to re emphasize the work of “six stabilities” and “six guarantees”, continuously improve people’s livelihood, strive to stabilize the macro-economic market, keep the economic operation within a reasonable range and maintain the overall social stability. China is expected to remain in the main tone of “stability” and “seeking progress in stability”. In order to complete China’s economic goals and tasks, stabilizing growth and expanding domestic demand have become the main focus. Therefore, the infrastructure industry is expected to continue to make efforts. The operating rate continues to show an accelerated recovery trend this week, further verifying the logic of industrial recovery.
2. Green building is the future deployment direction of China State Construction Engineering Corporation Limited(601668) industry. This year’s working conference of the Ministry of housing and urban rural development of China made it clear that we will continue to carry out the action of creating green buildings in 2022 and actively implement the goal of carbon peak and carbon neutralization. In the work of local governments, the low-carbon development of the construction industry has become a prominent task in the next step. Zhejiang, Jiangsu, Hubei, Anhui and other provinces will accelerate the creation of green buildings. For example, Jiangsu will strive to fully design and build new buildings according to ultra-low energy consumption standards by 2025, increase energy efficiency by 30% on the basis of increasing energy efficiency by 30% in 2020, Hubei plans to increase energy efficiency level of new buildings by 15% by 2025, and the completed area of green buildings will reach 100%, Anhui requires that the completed area of green buildings account for more than 70% of new civil buildings in 2022. Sichuan, Shaanxi and other places actively encourage the construction of green agricultural houses, and Fujian vigorously promotes the integrated application of photovoltaic and other renewable energy buildings.
Investment suggestion: in the context of the uncertain global situation, the overall valuation of the upstream and downstream of the infrastructure industry chain is low, with abundant orders, high relative security and strong risk resistance. Therefore, it is recommended to continue to pay attention.
Investment opportunities for earthquake mitigation and isolation under high-quality development: long-term efforts have been made in disaster prevention and mitigation, legislation has been passed, and 20-30 times of space can be expected. Relevant targets such as Quakesafe Technologies Co.Ltd(300767) , Zhejiang Tiantie Industry Co.Ltd(300587) “transportation power” and rail transit sector have long benefited: there is a broad demand for the construction of “Urban Agglomeration” on the track, and relevant targets such as Zhejiang Tiantie Industry Co.Ltd(300587) , China Railway Group Limited(601390) China Railway Construction Corporation Limited(601186) ；
Under the expectation of the improvement of China’s infrastructure investment margin in the second half of the year, it is suggested to pay attention to the opportunities related to the industrial chain: pay attention to the undervalued targets China State Construction Engineering Corporation Limited(601668) , China Railway Construction Corporation Limited(601186) , China Railway Group Limited(601390) ;
Leading infrastructure enterprises with steady main business and mineral resources: Metallurgical Corporation Of China Ltd(601618) , China Railway Group Limited(601390) ;
Under the background of dual control of energy consumption, high-quality targets in green power, BIPV and other related fields: Sinosteel Engineering & Technology Co.Ltd(000928) , Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) , Sinoma International Engineering Co.Ltd(600970) .
