The national Standing Committee called for expanding effective investment and promoting the aftereffect of making up for weaknesses and stable economic growth. The national Standing Committee once again stressed that steady growth should be given a more prominent position and that the spirit of the central economic work conference and the objectives of the government work report should be continued. On the one hand, we should make good use of government bonds to expand effective investment, drive consumption and expand domestic demand, step up the issuance of the remaining special debt quota, and favor regions with strong solvency and multiple project reserve groups. It is required that the quota issued in advance last year should be completed by the end of May and the quota issued this year should be completed by the end of September. On the other hand, the use of special bonds is mainly used in transportation, energy, ecological and environmental protection, affordable housing projects and other fields to support public service projects with certain benefits. At the same time, we should speed up the formation of physical workload and speed up the commencement and construction of projects. In the short term, although the progress of the project has slowed down slightly affected by the epidemic, with the mitigation of the epidemic and the expansion of domestic demand, the infrastructure is expected to continue to pick up. The prosperity of the industry has improved, and it is expected to decline due to the impact of the epidemic in the short term, but it is still high. The business activity index of the construction industry was 58.1%, up 0.5 percentage points from the previous month. The expected index of business activities in the construction industry was 60.3%, down 5.7 percentage points from the previous month. Although the expected decline in the industry was caused by the impact of the epidemic on the project progress, it was still in a high boom range.
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-term benefits: 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) .
