Index
On Tuesday, April 19, 2022, as of the closing, the Shanghai Composite Index fell 0.05% to 319403 points, the Shenzhen composite index fell 0.50%, the gem index fell 1.38%, and the turnover between the two markets was 779.4 billion yuan. In terms of sectors, coal, agriculture, forestry, animal husbandry and fishery, petroleum and petrochemical led the rise, rising by 2.71%, 2.28% and 2.02% respectively; Beauty care, electronics, medicine and biology led the decline, down 2.06%, 1.85% and 1.41% respectively.
Comments
In the first quarter, infrastructure investment (excluding power, heat, gas and water production and supply) increased by 8.5% year-on-year. In terms of building materials, cement production decreased by 12.1%, pig iron production decreased by 11%, crude steel production decreased by 10.5% and steel production decreased by 5.9% year-on-year. There is a contradiction between the growth of infrastructure investment and the decline in the output of building materials. We believe that there are two main reasons: on the one hand, the total investment in infrastructure in 2021 is small, an increase of only 0.4% over the previous year, and a certain amount of inventory of building materials such as cement and steel has been overstocked. When the infrastructure investment is ahead of schedule in the first quarter of this year, part of the demand for building materials for infrastructure construction has been digested by the overstocked inventory; On the other hand, the reason is that the development stage of China’s economy has changed from high-speed growth in the past to high-quality development. The driving force of economic growth has also changed greatly compared with the past. In addition to traditional infrastructure, 5g, UHV, new energy, digital infrastructure and other new infrastructure fields also play the role of engine of economic growth. The new infrastructure includes a large proportion of high-end manufacturing industry, which has limited drive to traditional industrial products, such as steel and cement. In view of the deviation between infrastructure investment and building materials production, we expect there will be large investment opportunities for new infrastructure this year.
Industry dynamics
On April 19, at the press conference on the development of industry and informatization in the first quarter, the spokesman of the Ministry of industry and information technology pointed out that when promoting the key work of industrial Internet, we should strengthen the new infrastructure and play a “first hand” in the digital economy. Advance the construction of three major systems of network, platform and security moderately, improve the efficiency of key facilities such as industrial Internet big data center, identification analysis system and security situational awareness system, expand the coverage of regions, industries and fields, improve the number of service enterprises, promote the data circulation, effective utilization and security of industrial Internet, and consolidate the foundation of digital economy development. (website of the state information office)
Company dynamics
Ningbo Construction Co.Ltd(601789) ( Ningbo Construction Co.Ltd(601789) ): from January to March 2022, Ningbo Construction Co.Ltd(601789) and its subsidiaries signed 392 new contracts, with a cumulative contract amount of about RMB 4.494 billion, a decrease of 21.06% over the same period of the previous year. Among them, the newly signed contract amount of housing construction was 3130163100 yuan, a year-on-year decrease of 30.50%; The newly signed contract amount of infrastructure projects was 969523100 yuan, a year-on-year increase of 33.84%. （iFinD）
Risk warning: the implementation of the policy is less than expected; The price rise of raw materials exceeded expectations; The epidemic affected the economy more than expected.
