The construction sector fell this week, underperforming the market, and the construction segment generally fell China State Construction Engineering Corporation Limited(601668) business data has improved steadily and is expected to continue to make efforts in the field of infrastructure.
The overall decline in construction underperformed the market, and the segments generally fell: this week, the Shenwan construction index closed at 2066.5 points, down 6.4% month on week, underperforming the market. The industry's average price to book ratio was 0.9 times, slightly lower than that of last week. Segments generally fell, with the consulting sector falling by 2.4%, the smallest decline; Fabricated fell 9.0%, the largest decline.
China State Construction Engineering Corporation Limited(601668) business data has improved steadily and is expected to continue to make efforts in the field of infrastructure: Recently, China State Construction Engineering Corporation Limited(601668) released its annual report for 2021. In 2021, the company's revenue was 1.89 trillion yuan, a year-on-year increase of 17.1%; The net profit attributable to the parent company was 51.408 billion yuan, a year-on-year increase of 14.4%. The growth rate of the company's revenue and net profit was significantly higher than that of the previous year. In 2021, the amount of China State Construction Engineering Corporation Limited(601668) newly signed contracts was 3.11 trillion yuan, an increase of 12.2% at the same time; Among them, the newly signed capital construction contracts amounted to 843.9 billion yuan, an increase of 23.9% over the same period; The newly signed contract amount of housing construction was 2.25 trillion yuan, an increase of 8.5% at the same time; The newly signed contract amount for survey and design is 12.9 billion yuan, a decrease of 9.2% China State Construction Engineering Corporation Limited(601668) 2021 revenue, net profit and newly signed contract amount increased significantly compared with the previous year, mainly due to: 1. The base number in 2020 is low; 2. Infrastructure plays a supporting role in the context of the epidemic, and China State Construction Engineering Corporation Limited(601668) takes the lead in benefiting as a large central enterprise of infrastructure. According to Wande data, China State Construction Engineering Corporation Limited(601668) has increased by 17.8% since the beginning of 2022. Since 2020, China State Construction Engineering Corporation Limited(601668) infrastructure orders have increased rapidly, exceeding the growth rate of housing construction orders. At present, the real estate easing policy needs to be further strengthened, and the government takes infrastructure construction as one of the priorities of expanding effective investment, China State Construction Engineering Corporation Limited(601668) is expected to further develop in the field of infrastructure by relying on the background of central enterprises and strong financial strength.
Infrastructure investment continued to grow, while real estate investment fell slightly: in March, fixed asset investment was 6.9 trillion, an increase of 7.1%, with strong year-on-year growth toughness. Among them, the completed investment in infrastructure and real estate development was 1.8 trillion and 1.3 trillion respectively, with a year-on-year growth rate of 11.8% and - 2.4% respectively. Infrastructure investment continued the growth trend from January to February, and the year-on-year growth level has been significantly improved; Real estate investment fell slightly. In infrastructure construction, the investment in power, transportation and public utilities was 0.35 trillion yuan, 0.65 trillion yuan and 0.85 trillion yuan respectively, with a year-on-year growth rate of 24.4%, 8.9% and 9.4% respectively. In March, the three sub projects performed well. The year-on-year growth rate of electric power and public water conservancy exceeded the level from January to February. The year-on-year growth rate of transportation investment decreased slightly compared with that from January to February, but still maintained a high level.
Construction and completion declined year-on-year, and the real estate easing policy needs to be further strengthened: in March, the planned construction area of land transactions in 100 large and medium-sized cities totaled 86 million square meters, a sharp decline of 72.8% year-on-year; The average transaction floor price is 1442 yuan / square meter, with an increase of 130.7 yuan / square meter. The decline of transaction price is higher than that of transaction area. The construction, completion and sales areas were 150 million square meters, 47 million square meters and 150 million square meters respectively, with a year-on-year growth rate of - 22.2%, - 15.5% and - 17.7% respectively. The year-on-year growth rate of new construction in March was larger than that from January to February, mainly due to the slowdown of construction progress due to the impact of the epidemic in many places in March; The growth rate of completion was lower than that from January to February, mainly because the peak period of completion was not at the beginning of the year, and the construction progress in many places under the influence of the epidemic slowed down. In March, the decline of commercial housing sales area expanded, and the sales unit price continued to decline, 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.
