This week, the construction sector outperformed the market, and the construction segment generally rose. The infrastructure sector is expected to rely on policies to promote sustained efforts, and the Ministry of housing and urban rural development issued the standard for design and selection of prefabricated houses.
The rise of construction outperformed the market, and the segments generally rose: this week (4.4-4.10), the Shenwan construction index closed at 2335.0 points, up 6.1% month on month (3.28-4.3) last week, outperforming the market. The industry's average price to book ratio was 1.0 times, unchanged from last week. Segments generally rose, with civil construction rising by 8.8%, the largest increase; Construction machinery and electrical equipment fell 4.2%, the largest decline.
The infrastructure sector is expected to continue to rely on policy promotion. The Ministry of housing and urban rural development issued the standard for design and selection of prefabricated houses: at the executive meeting of the State Council on April 6, it was pointed out that steady growth should be put in a more prominent position, and steady growth, structural adjustment and reform should be coordinated to effectively stabilize the macro-economic market. On April 8, the regular policy briefing of the State Council on the construction of water conservancy projects pointed out that at present, there are still outstanding problems in water conservancy, such as imperfect River Basin flood control project system, insufficient overall allocation capacity of water resources, heavy task of water ecological and water environment governance, and low degree of systematization, networking and intelligence of water conservancy infrastructure, and put forward solutions to the above problems. On March 31, the Ministry of housing and urban rural development issued the industry standard "standard for design and type selection of prefabricated houses", which will be implemented from April 1, 2022. The formulation of the standard focuses on solving the problems of standardized design of prefabricated buildings and the connection between parts, further promoting the standardization of prefabricated buildings and improving the construction efficiency of prefabricated buildings Shenzhen Capol International&Associatesco.Ltd(002949) participated in the formulation of the standard, which further proves the company's leading position in prefabricated buildings.
Infrastructure investment continued to grow, and real estate investment picked up slightly: from January to February, fixed asset investment was 5.4 trillion, an increase of 12.2% year-on-year. Among them, the completed investment in infrastructure and real estate development was 1.3 trillion and 1.4 trillion respectively, with a year-on-year growth rate of 8.6% and 3.7% respectively. Infrastructure investment continued the growth trend in December, and the year-on-year growth rate was significantly improved; After four consecutive months of decline, real estate investment also ushered in signs of recovery. In infrastructure construction, the investment in power, transportation and public utilities was 0.21 trillion yuan, 0.48 trillion yuan and 0.57 trillion yuan respectively, with a year-on-year growth rate of 11.7%, 10.5% and 6.0% respectively. From January to February, the investment performance of the three sub projects was good, with a large year-on-year increase in power and transportation. The investment in public water conservancy also ended its continuous decline and ushered in growth. The main tone of steady growth in 2022 is expected to drive the continuous improvement of infrastructure investment.
Construction and completion fell year-on-year, and the decline of land transaction price was higher than that of transaction area: from January to February, the planned land transaction area of 100 large and medium-sized cities totaled 150 million square meters, a year-on-year decline of 26.7%; The average transaction floor price is 1386 yuan / square meter, with a decrease of 1273.5 yuan / square meter. The decline of transaction price is higher than that of transaction area. The construction, completion and sales areas were 150, 120 and 160 million square meters respectively, with a year-on-year growth rate of - 12.1%, - 9.8% and - 9.6% respectively. The year-on-year growth rate of new construction from January to February narrowed by 19.0 PCT compared with December 2021, mainly because most projects started construction at the beginning of the year; The completion growth rate dropped significantly compared with December, mainly because the beginning of the year was not the peak of completion, and real estate enterprises used limited funds for new projects. From January to February, the decline of commercial housing sales area narrowed, but the sales unit price decreased significantly, indicating that the current real estate sales situation is still poor, and the real estate easing policy needs to be further strengthened.
Key recommendation
Key recommendation: infrastructure sector, Shenzhen Capol International&Associatesco.Ltd(002949)
Main risks of rating
Risk tip: manufacturing investment slows down, assembly promotion is less than expected, and macro liquidity is tightened.
