This week, we combed the situation of the design sector in detail. Architectural design companies are mainly divided into infrastructure design and housing construction design. Under the main line of steady growth, infrastructure design is expected to continue to benefit from infrastructure development. Due to the decentralized competition in the downstream market, non-governmental real estate customers pay more attention to the construction cost and subsequent economic benefits of buildings than the government, Therefore, the competition in the architectural design industry is more market-oriented, and the stickiness of customers to excellent design institutes is expected to be stronger. Previously, affected by the credit risk of real estate customers, some architectural design head enterprises accrued more impairment, and there may be more room for improvement in the future. Overall, while the traditional main business of the two types of design companies is growing steadily, they actively explore new markets and new development directions. There are many bright spots, and the leading strong is always strong.
When it comes to the industrial chain of industrial chain of infrastructure design and infrastructure design, the industrial chain of industrial chain for infrastructure design. The main targets are China Design Group Co.Ltd(603018) Gansu Engineering Consulting Group Co.Ltd(000779) has achieved a compound growth rate of more than 10% for five consecutive years. Anhui Transport Consulting & Design Institute Co.Ltd(603357) benefited from the development of infrastructure in Anhui Province. As a strong province with traditional infrastructure, China Design Group Co.Ltd(603018) and Jsti Group(300284) are still expected to maintain strong demand in Jiangsu Province. At the same time, most of the design companies in the infrastructure industry chain are transforming into intelligent transportation, BIM, assembly and other fields, focusing on the expansion of the new track of cooperative automatic driving of development vehicles and roads of Huashe and the establishment of three new energy projects in Tianzhu, Gulang and Jingyuan counties by the Institute of water resources and hydropower under Gansu Engineering Consulting Group Co.Ltd(000779) banner.
From the perspective of the architectural design industry chain, due to the more open downstream competition, the number of construction design companies is significantly higher than that of architectural design companies. Generally speaking, the performance flexibility of architectural design companies was significantly stronger than that of infrastructure design 21 years ago. In 21 years, due to the downward risk of real estate Shenzhen Capol International&Associatesco.Ltd(002949) , Arts Group Co.Ltd(603017) and other companies withdrawing impairment, the performance declined significantly. If the real estate ushered in room for improvement at the same time, from the perspective of business transformation, Overall, the flexibility of architectural design companies is significantly higher than that of infrastructure design companies. Huayang and Zwsoft Co.Ltd(Guangzhou)(688083) jointly funded the establishment of "Zhongwang Zhicheng" joint venture to carry out the R & D and sales of domestic BIM software, Hanjia Design Group Co.Ltd(300746) , Arts Group Co.Ltd(603017) etc. take advantage of the advantages of traditional housing construction and explore the fields related to building photovoltaic under the policy of green building and carbon neutrality, At the same time, the affordable housing market also opens up new business development space for Shenzhen Capol International&Associatesco.Ltd(002949) and other companies.
Market Review
Last week, the construction (CITIC) index rose 0.83% and the CSI 300 index rose 2.01%. Among the three sub sectors, the garden engineering, architectural design and professional engineering sectors led the increase, recording positive gains of 5.31%, 2.45% and 2.20% respectively. Among the individual stocks, Tianjin Lvyin Landscape And Ecology Construction Co.Ltd(002887) (+ 48.07%), Misho Ecology & Landscape Co.Ltd(300495) (+ 47.87%), Gansu Engineering Consulting Group Co.Ltd(000779) (+ 42.05%), China Haisum Engineering Co.Ltd(002116) (+ 29.14%) and Jiangsu Zhongshe Group Co.Ltd(002883) (+ 27.81%) led the increase.
Investment advice
Under the medium and long-term growth dimension of "construction +" leader, enterprises with "new energy" and "chemical" industries have gradually entered the performance cashing period, and their performance is expected to grow high. Under the dimension of valuation restoration of value varieties, the leaders of local state-owned enterprises are expected to enjoy the high boom of regional infrastructure, and the profit elasticity brought by the improvement of operating efficiency has initially appeared. In the medium and long term, there are both opportunities for steady growth and report quality improvement. The increase of market share of central enterprises supports the continuous growth of revenue. After the completion of leverage reduction, roe still has obvious upward elasticity. With the continuous strengthening of the profit release ability and willingness of central enterprises, It also has strong elasticity of valuation and repair.
Risk tips: Infrastructure & real estate investment went down more than expected, new energy & chemical business expansion was less than expected, the concentration of assembled leaders was less than expected, and the progress of efficiency improvement in the reform of central enterprises and state-owned enterprises was less than expected.
