In the morning trading on April 8, individual stocks in the engineering construction sector rose by the limit in batches. As of the morning closing, Xinjiang Communications Construction Group Co.Ltd(002941) , Xinjiang Beixin Road & Bridge Group Co.Ltd(002307) , China Zhonghua Geotechnical Engineering Group Co.Ltd(002542) , Tengda Construction Group Co.Ltd(600512) limit.
Large infrastructure central enterprises also showed strong performance, with Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) up 5.22%, China Railway Group Limited(601390) up 4.17% and China Communications Construction Company Limited(601800) up 4.08%.
On April 7, China Railway Group Limited(601390) disclosed the operating data of the first quarter. Among them, the newly signed business contract amount of infrastructure increased by 94.1% year-on-year, which attracted the attention of the industry. Industry insiders believe that the data is much higher than expected. Although the company did not disclose the commencement, it still effectively boosted market confidence.
capital construction contract amount increased significantly
According to the announcement, China Railway Group Limited(601390) in the first quarter, the newly signed contract amount was 605.74 billion yuan, an increase of 84.0% year-on-year. Among them, 1591 new contracts were signed for infrastructure construction business, with a contract amount of 543.45 billion yuan, a year-on-year increase of 94.1%.
Source: Announcement
Some securities traders said that the data released by China Railway Group Limited(601390) is really bright and has an obvious catalytic effect on the sector under the current market situation.
China Securities News · China Securities Taurus reporter noted that there is also a market view that China Railway Group Limited(601390) disclosure is only the signing situation, not the construction volume.
In this regard, the reporter called China Railway Group Limited(601390) , and the company said that the newly signed project needs a preparation period of 1-3 months. After the project pays the reserve, the company will enter the site and start construction one after another.
On the 7th, another data about China’s total infrastructure investment spread in the market, which also attracted great attention from the industry.
According to the data of Everbright Securities Company Limited(601788) statistics, the construction plans of major projects in 2022 disclosed by 24 provinces involve an annual investment scale of 12.7 trillion yuan.
investment acceleration
In fact, since the beginning of this year, the characteristics of fiscal policy in advance are obvious, including the issuance of special debt quota in advance. As an important starting point for steady growth, infrastructure investment is placed in a more prominent position, which is also a general consensus in the industry.
According to the data of the National Bureau of statistics, infrastructure investment increased by 8.1% year-on-year in the first two months of this year, 7.7 percentage points faster than that in 2021.
For the company, China Nuclear Engineering & Construction Corporation Limited(601611) in the first quarter, the newly signed contract amount was 29.065 billion yuan, a year-on-year increase of 19.4% Xinjiang Beixin Road & Bridge Group Co.Ltd(002307) in the first quarter, the construction industry won 12 new bids and signed 12 projects, with a contract amount of 5.759 billion yuan.
Ping An Securities said that from the construction plans of major projects in various regions in 2022, the investment plan amount of most provinces in 2022 showed a high single digit to double-digit growth compared with the previous year. The planned annual investment growth in Shanghai, Wuhan, Guangdong, Zhejiang and Anhui is 12% – 19%.
Ping An Securities said that since the fourth quarter of last year, the central government has clearly determined to expand effective investment and moderately advance infrastructure construction under the task of stabilizing growth. Since the beginning of the year, all localities have actively promoted the implementation of policies. From the government work report of the local and the two sessions of the Central Committee in 2022, the construction and investment plan of major projects in all provinces and cities and the progress of local special bond issuance, it is confirmed that infrastructure investment is the key direction of all localities this year.
At the same time, the number of major projects in various regions has been increased one after another. Henan recently held the fourth phase of the province’s “three one batch” project construction activities, with 560 “one batch” projects signed, with a total investment of 436.4 billion yuan; 1009 “first batch of construction” projects with a total investment of 632.8 billion yuan; There are 785 “put into operation” projects with a total investment of 422.7 billion yuan.
Heilongjiang also held a key project commencement ceremony a few days ago. A total of 1902 key projects were started, including 312 provincial-level key projects and 1590 municipal level key projects.
