The overall operation of fixed asset investment was stable, and infrastructure continued to rise. With the effective support of special bonds, infrastructure investment increased by 8.5% year-on-year, 0.4 percentage points faster than that from January to February. From the perspective of investment trend, the growth of investment leading indicators is good, which is conducive to the continuous expansion of investment. In the first quarter, 35000 new projects were invested, an increase of 12000 over the same period last year; The planned total investment of new projects increased by 54.9% year-on-year; State budget funds increased by 34.7%, and self raised funds increased by 15.0%. In the next stage, China plans to give better play to the effectiveness of special bonds, promote the construction of a number of major projects with mature conditions, and leverage more social capital investment.
Recently, the central bank and the safe issued 23 measures to do a good job in epidemic prevention and control and financial services for economic and social development, and clearly support the reasonable financing needs of real estate development enterprises and construction enterprises. Although the construction industry is still affected by the epidemic in the short term, the main line of “steady growth” this year is unshakable under the combined action of special debt support, accelerated approval and increasing policies.
Investment suggestion: under the background of “steady growth”, central construction enterprises and high-quality state-owned enterprises have strong risk resistance and abundant demand. Although some areas may be affected by the epidemic in the short term, the project progress is slow, but the recovery trend of the whole year is clear.
Investment opportunities for seismic mitigation and isolation under high-quality development: long-term efforts for disaster prevention and reduction have been made, legislation has been passed, and 20-30 times of space can be expected. Relevant targets such as leading seismic mitigation and isolation Quakesafe Technologies Co.Ltd(300767) , Zhejiang Tiantie Industry Co.Ltd(300587)
The rail transit sector of “transportation power” has benefited for a long time: there is a broad demand for the construction of “Urban Agglomeration” on the track, 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) .
