This week’s topic: what are the targets of green buildings?
We believe that the fine-grained industries related to the green building industry chain can find the target along the two dimensions of traditional buildings and new buildings:
In the field of traditional architecture, prefabricated architecture and intelligent transformation of traditional production line are two important paths. After the price of raw materials stabilizes and falls, the prosperity of the prefabricated building sector is expected to rise. As an important driving force of new urbanization, the prefabricated track has good growth in the medium and long term. According to the sequence of “design structure decoration”, the relevant targets of the prefabricated design are Shenzhen Capol International&Associatesco.Ltd(002949) , Zhubo Design Co.Ltd(300564) , and the main targets of the main structure (steel structure / precast concrete structure) are Anhui Honglu Steel Construction(Group) Co.Ltd(002541) Yuanda Residential Engineering Co., Ltd., Changjiang & Jinggong Steel Building(Group)Co.Ltd(600496) , Zhejiang Southeast Space Frame Co.Ltd(002135) , and Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) , Zhejiang Yasha Decoration Co.Ltd(002375) , Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) are related to the fabricated decoration. Under the dual carbon background, the traditional production line needs technical transformation and upgrading. The professional engineering company is expected to use the advantages of traditional professional engineering to transform the traditional production line and cut into the field of operation and maintenance. The related targets include Sinoma International Engineering Co.Ltd(600970) , Sinosteel Engineering & Technology Co.Ltd(000928) , Metallurgical Corporation Of China Ltd(601618) ;
The track space related to new energy is vast, which not only provides additional incremental space for the traditional construction industry, but also helps to reshape the business model. From the perspective of industrial chain, the whole new energy industry chain related to construction can be divided into three aspects: construction, energy storage and operation. As a new energy solution, BIPV also opens a new blue ocean market for traditional construction enterprises. Specifically, the field of new energy power station and distribution network construction is mainly to build photovoltaic, wind power and other clean energy power stations. The main targets include Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) , China Energy Engineering Corporation Limited(601868) , Guangdong No.2 Hydropower Engineering Company Ltd(002060) , Huadian Heavy Industries Co.Ltd(601226) , and Suwen Electric Energy Technology Co.Ltd(300982) with excellent strength in distribution network construction; In the field of energy storage, the current building energy storage and operation fields are related to Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) and China’s energy construction; In the BIPV field, the main targets we combed are: 1) roof metal envelope: Center International Group Co.Ltd(603098) , Zhejiang Southeast Space Frame Co.Ltd(002135) , Changjiang & Jinggong Steel Building(Group)Co.Ltd(600496) ; 2) Photovoltaic curtain wall: Jangho Group Co.Ltd(601886) , Shenzhen Ruihe Construction Decoration Co.Ltd(002620) , Shenzhen Weiye Decoration Group Co.Ltd(300621) .
Market Review
Last week, the construction (CITIC) index rose 0.67%, the Shanghai and Shenzhen 300 index rose 0.30%, and all the other sub sectors except construction and decoration of the tertiary sub sector rose, among which the architectural design sub sector led the increase, recording a positive income of 2.8%. Among individual stocks, Shenzhen Capol International&Associatesco.Ltd(002949) (+ 19.69%), Center International Group Co.Ltd(603098) (+ 19.06%), Cofco Engineering & Technology Co.Ltd(301058) (+ 19.03%), Shenzhen Jiang&Associates Creative Design Co.Ltd(300668) (+ 15.73%) and East China Engineering Science And Technology Co.Ltd(002140) (+ 13.26%) led the increase. At present, the hot spots in the market are mainly concentrated in the “construction + new energy” and “carbon neutral” industrial chain. The valuation of the infrastructure sector has been significantly repaired recently. We believe that it is related to the increased downward pressure on the economy and the expected rise in the policy of stabilizing infrastructure growth, It is suggested to pay active attention to the guidelines of the follow-up central meeting on counter cyclical regulation.
Investment advice
Under the medium and long-term growth dimension of “construction +” leader, enterprises with “new energy” and “chemical” industries have gradually entered the performance cashing period, and their performance is expected to grow high. Under the dimension of value variety valuation restoration, local state-owned enterprise leaders are expected to enjoy the high prosperity of regional infrastructure. The profit elasticity brought by the improvement of operating efficiency has initially appeared. There are opportunities for both steady growth and report quality improvement in the medium and long term. The increase of market share of central enterprises supports the continuous growth of revenue. After the completion of leverage reduction, roe still has obvious upward elasticity, With the continuous strengthening of the profit release ability and willingness of central enterprises, they also have strong elasticity of valuation repair.
Risk tips: Infrastructure & real estate investment went down more than expected, new energy & chemical business expansion was less than expected, the concentration of assembled leaders was less than expected, and the progress of efficiency improvement in the reform of central enterprises and state-owned enterprises was less than expected.
