Core Viewpoint - The revenue and profit of China Railway decreased in the first half of 2025 due to macroeconomic conditions and intensified industry competition [1][2]. Financial Performance - In the first half of 2025, China Railway reported a revenue of 511.09 billion yuan, a year-on-year decrease of 5.93%, and a net profit of 10.27 billion yuan, down 21.59% [2]. - China Railway Construction also experienced declines, with revenues of 489.20 billion yuan and a net profit of 9.88 billion yuan, representing decreases of 5.22% and 11.40% respectively [2]. Business Strategy and Goals - For the second half of 2025, the company plans to focus on high-quality growth, accelerate reform and innovation, and strengthen risk management [3]. - The target for total revenue in 2025 is approximately 1,132.0 billion yuan, indicating that the company has completed 45.15% of its annual target in the first half [3]. Margin Analysis - The gross margins across major business segments, including infrastructure construction, design consulting, equipment manufacturing, and real estate development, have all declined, with the real estate development margin at 9.15%, down 3.42 percentage points year-on-year [3]. - China Railway Construction noted a similar trend in its five business segments, with declines in engineering contracting, planning and design consulting, and real estate development, while industrial manufacturing and logistics saw margin increases [3]. Contracting Activity - In the first half of 2025, China Railway signed new contracts worth 1,108.69 billion yuan, a year-on-year increase of 2.8%, with domestic and international contracts growing at rates of -1.2% and 51.6% respectively [3][4]. - China Railway Construction's new contracts totaled 1,056.17 billion yuan, down 4.04%, with domestic and international contracts decreasing by 8.37% and increasing by 57.43% respectively [3]. International Business Development - The growth in new contracts for China Railway was significantly driven by overseas business, which achieved a contract value of 124.87 billion yuan, up 51.6%, accounting for 11.3% of total new contracts [4]. - The company plans to continue focusing on key markets and projects, enhancing operational capabilities and exploring new business models to mitigate market fluctuations [4].

Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of China Railway Construction Corporation (601186.SH/1186.HK) [1] Core Views - The company has shown signs of operational recovery in Q2, with significant growth in overseas business. The new contracts signed in Q2 have increased by 2.4% year-on-year, despite a decline in total new contracts for the first half of the year [6][7] - The company's revenue for H1 2025 was 489.2 billion yuan, with a net profit attributable to shareholders of 10.7 billion yuan, reflecting a year-on-year decrease of 5.2% and 10.1% respectively [5][6] - The overseas new contract signing has surged by 57.4% year-on-year, indicating strong international demand [6] Summary by Sections Financial Performance - In H1 2025, the company achieved operating revenue of 489.2 billion yuan, a decrease of 5.2% year-on-year, and a net profit of 10.7 billion yuan, down 10.1% year-on-year. In Q2 alone, the revenue was 232.4 billion yuan, with a net profit of 5.6 billion yuan, reflecting a decline of 3.6% and 5.6% respectively [5][6] - The gross profit margin for H1 2025 was 8.8%, down 0.3 percentage points year-on-year, while the net profit margin also decreased by 0.3 percentage points to 2.6% [7][8] Contract and Revenue Breakdown - The total new contracts signed in H1 2025 amounted to 1,056.17 billion yuan, a decline of 4.0% year-on-year. However, the overseas contracts grew significantly, with domestic contracts at 942.08 billion yuan (down 8.4%) and international contracts at 114.09 billion yuan (up 57.4%) [6] - The engineering contracting segment saw a notable decline in urban rail projects, which dropped by 64.8% year-on-year, while railway engineering, power engineering, and highway engineering experienced growth of 39.3%, 10.9%, and 10.7% respectively [6] Profitability and Cash Flow - The company’s operating cash flow for H1 2025 was -79.46 billion yuan, an improvement of 2.22 billion yuan compared to the same period last year [8] - The report forecasts net profits for 2025-2027 to be 22.3 billion, 22.9 billion, and 23.5 billion yuan respectively, maintaining the "Buy" rating for both A and H shares [8][9]

Investment Rating - The report maintains a "Buy" rating for the construction and decoration industry, highlighting specific companies as key investment targets [4][7]. Core Insights - The construction sector has experienced significant fluctuations over the past sixteen years, with eight winning phases (40% of the time) and seven losing phases (60% of the time) [1][12]. - The current market environment is characterized by a gradual easing of policies since late 2021, which has historically correlated with better performance in the construction sector [1][3]. - The report emphasizes the importance of thematic influences, such as the "Belt and Road Initiative" and "PPP" projects, which have driven substantial short-term excess returns in the sector [2][3]. Summary by Sections 1. Historical Review of the Construction Sector - The report divides the historical performance of the construction sector from June 2008 to December 2024 into fifteen phases based on excess returns relative to the CSI 300 index [11]. - Winning phases include significant periods of policy easing and economic recovery, while losing phases often coincide with tighter monetary policies [1][12]. 2. Policy Cycle and Market Trends - The report identifies four major policy cycles since 2008, with the current phase being a gradual easing that began in late 2021 [1][3]. - The correlation between excess returns and macroeconomic indicators is noted to be weak, with expectations of policy changes being more influential [1][3]. 3. Thematic Characteristics and Valuation - The construction sector's valuation is currently low, with a price-to-book ratio (PB) of 0.8, which is below historical averages and indicates potential for rebound [2][3]. - The report highlights that the sector's performance is sensitive to thematic catalysts, suggesting that upcoming regional initiatives could provide investment opportunities [3][4]. 4. Comparison with Banking Sector - The construction sector is compared to the banking sector, noting similarities in business models and sensitivity to credit environment changes [3]. - The current price-to-book ratio of the construction sector relative to banks is at a critical point, suggesting potential for significant excess returns if historical patterns hold [3]. 5. Investment Recommendations - Key investment targets include leading companies benefiting from strategic infrastructure projects, such as Sichuan Road and Bridge, China Metallurgical Group, and China Communications Construction [4][7]. - The report also suggests monitoring local leaders in Xinjiang and companies involved in coal chemical projects as potential high-return investments [4].

Core Viewpoint - The National Enterprise Win ETF (159719) has shown a positive performance with a recent increase of 0.63%, reflecting a broader trend of rising profits and dividends among Chinese listed companies, particularly state-owned enterprises [3][4]. Performance Summary - As of September 1, 2025, the National Enterprise Win ETF has achieved a net value increase of 51.31% over the past three years, ranking 215 out of 1860 index equity funds, placing it in the top 11.56% [4]. - The ETF has recorded a maximum monthly return of 14.61% since its inception, with the longest consecutive monthly gains reaching 7 months and a total increase of 24.70% [4]. - The average monthly return during rising months is 4.14%, with a total annual profit percentage of 100.00% and a historical three-year holding profit probability of 100.00% [4]. - Over the past three months, the ETF has outperformed its benchmark with an annualized return of 11.82% [4]. Liquidity and Scale - The ETF experienced a turnover rate of 6.84% with a trading volume of 4.9045 million yuan on September 1, 2025, and an average daily trading volume of 16.6744 million yuan over the past year [3]. - In the past week, the ETF's scale increased by 2.187 million yuan, ranking it in the top third among comparable funds [3]. - The number of shares increased by 2 million in the past week, also placing it in the top third among comparable funds [3]. Fee Structure and Tracking Precision - The management fee for the National Enterprise Win ETF is 0.25%, and the custody fee is 0.05%, which are the lowest among comparable funds [5]. - The tracking error for the ETF over the past month is 0.060%, indicating high tracking precision compared to similar funds [5]. Index Composition - The ETF closely tracks the FTSE China National Enterprises Open Win Index, which reflects the performance of Chinese state-owned enterprises listed in mainland China and Hong Kong, focusing on globalization and sustainable development [5]. - The index consists of 100 constituent stocks, including 80 A-share companies and 20 companies listed in Hong Kong [5]. Top Holdings - The top holdings in the National Enterprise Win ETF include: - China Petroleum (601857) with a weight of 15.94% and a price increase of 2.18% - China Petrochemical (600028) with a weight of 11.93% and a price increase of 1.40% - China State Construction (601668) with a weight of 9.59% and a price increase of 0.18% [7].

Investment Rating - The report maintains an "Optimistic" rating for the construction industry [2][4]. Core Insights - The construction industry faced pressure on revenue and profit in H1 2025, with total revenue of 3.75 trillion, down 5.7% year-on-year, and net profit of 87.5 billion, down 6.5% year-on-year [2][7]. - The industry experienced a relative stability in gross margin and net margin, with a gross margin of 9.9% and a net margin of 2.33% in H1 2025 [8][19]. - Operating cash flow showed improvement, with a net cash flow of -477.4 billion, a reduction in outflow by 15.1 billion year-on-year [3][12]. - The industry’s return on equity (ROE) decreased by 0.31 percentage points to 2.50% in H1 2025, indicating pressure on profitability [16][27]. Summary by Sections Financial Overview - In H1 2025, major listed companies in the construction industry reported revenues of 3.75 trillion, a decrease of 5.7% year-on-year, and net profits of 87.5 billion, down 6.5% year-on-year [2][7]. - Quarterly revenues for Q1 and Q2 were 1.84 trillion and 1.91 trillion, respectively, with year-on-year declines of 6.2% and 5.2% [2][7]. Profitability Analysis - The industry maintained a gross margin of 9.9%, a slight decrease of 0.2 percentage points year-on-year, and a net margin of 2.33%, down 0.02 percentage points [8][19]. - The ROE for the industry decreased to 2.50%, reflecting the impact of reduced investment and increased costs [16][27]. Cash Flow Improvement - The operating cash flow net amount was -477.4 billion, showing an improvement with a reduction in cash outflow by 15.1 billion year-on-year [3][12]. - The cash collection ratio improved to 103% in Q1 and 87% in Q2, with year-on-year changes of +0.85 percentage points and +11.65 percentage points, respectively [3][12]. Market Dynamics - The report highlights a shift in focus from growth to quality improvement among state-owned enterprises, with an emphasis on cash flow management and cost control [4][19]. - The construction industry is expected to see a recovery in revenue and cash flow in the second half of 2025, driven by anticipated government investment stimulus [4][19].

Core Viewpoint - The company reported a decline in net profit and revenue for the first half of 2025, aligning with expectations, while maintaining a "buy" rating for future profitability forecasts [1][3]. Financial Performance - In H1 2025, the company's revenue was 489.199 billion, a year-on-year decrease of 5.22%, and the net profit attributable to shareholders was 10.701 billion, down 10.09% year-on-year, which met expectations [1]. - The gross margin and net profit margin for H1 2025 were 8.84% and 2.19%, respectively, showing a decrease of 0.28 percentage points and 0.12 percentage points year-on-year [1]. - The total expense ratio was 4.85%, an increase of 0.05 percentage points year-on-year, with sales, management, R&D, and financial expense ratios showing mixed changes [1]. - Asset and credit impairment losses amounted to 2.406 billion, accounting for 0.49% of revenue, an increase of 0.05 percentage points compared to the same period last year [1]. - Quarterly breakdown for Q1 and Q2 2025 showed revenues of 256.762 billion and 232.437 billion, with year-on-year declines of 6.61% and 3.63%, and net profits of 5.151 billion and 5.551 billion, with declines of 14.51% and 5.55% respectively [1]. Business Segments - The engineering contracting business saw a slight decline in revenue, totaling 434.6 billion, down 3.77% year-on-year, with a gross margin of 7.43%, a decrease of 0.13 percentage points [2]. - The real estate segment generated revenue of 20.755 billion, a significant drop of 34.21%, with a gross margin of 9.68%, down 1.76 percentage points [2]. - Domestic revenue was 452.11 billion, down 6.84% year-on-year, while overseas revenue increased by 20.29% to 37.089 billion, with a gross margin of 6.53%, up 0.29 percentage points [2]. Cash Flow and Receivables - The net cash flow from operating activities for H1 2025 was -79.457 billion, a decrease in outflow by 2.219 billion year-on-year [2]. - The cash collection ratio was 97.7%, an increase of 1.62 percentage points compared to the previous year, while accounts receivable increased by 62.191 billion and inventory decreased by 21.07 billion [2]. - The cash payment ratio was 112.9%, up 2.06 percentage points year-on-year, with accounts payable increasing by 63.545 billion and prepayments rising by 2.32 billion [2]. Investment Outlook - The company maintains its profit forecast for 2025-2027, expecting net profits of 21.4 billion, 21.7 billion, and 22.2 billion, with growth rates of -3.6%, +1.3%, and +2.5% respectively, corresponding to a PE ratio of 5X for each year [3].

Industry Overview - Self-adhesive membranes are a new type of waterproof material characterized by low-temperature flexibility, self-healing properties, and strong adhesion, allowing for quick construction at room temperature and compliance with environmental standards [1][2] - The production of self-adhesive membranes in China is projected to grow from 402 million square meters in 2015 to 1.477 billion square meters by 2024, driven by advancements in technology and expanding applications [1][8] Industry Development History - The self-adhesive membrane industry in China began in the 1990s with the introduction of products from international brands, followed by local production efforts [4] - By 2000, advancements in technology led to mass production of self-adhesive waterproof membranes, and industry standards were established in 2002 to ensure product quality [4][5] Industry Supply Chain - The supply chain consists of upstream raw material suppliers (asphalt, polymer resins, polyethylene films), midstream manufacturers who produce various self-adhesive membrane products, and downstream applications in construction and infrastructure [6] - The production of petroleum asphalt, a key component, has seen fluctuations, with a projected output of 34.508 million tons in 2024, down from 62.88 million tons in 2020 [6][7] Market Demand and Trends - The self-adhesive membrane industry is closely linked to the real estate sector, which is currently experiencing a downturn, impacting demand [7] - However, infrastructure investment remains robust, with a 3.2% year-on-year growth in the first half of 2025, providing some demand for self-adhesive membranes [7][8] Competitive Landscape - Major players in the self-adhesive membrane industry include Beijing Oriental Yuhong Waterproof Technology Co., Ltd. and Keshun Waterproof Technology Co., Ltd., which leverage technology and brand strength to maintain market leadership [9][11] - Smaller companies focus on niche products and regional markets due to limited resources compared to larger firms [9] Future Industry Trends - The industry is expected to see increased concentration as stricter environmental regulations and rising production costs lead to the elimination of less competitive firms [14] - Companies are expanding internationally to seek new growth opportunities, with notable efforts from leading firms to establish overseas operations [15] - Government policies are increasingly supportive of high-performance waterproof materials, enhancing the growth prospects for self-adhesive membranes [16]

Core Viewpoint - The successful completion of the Caijia Gorge Double-Line Bridge marks a significant milestone for the Chongqing-Wanzhou High-Speed Railway, ensuring timely operation of the entire line [1] Group 1: Project Details - The Caijia Gorge Double-Line Bridge, constructed by China Railway Construction Bridge Bureau, is located in Fuling District, Chongqing, and spans a tributary of the Yangtze River [1] - The bridge features a continuous rigid frame design with a total span of 584 meters, characterized by a symmetrical structure with shorter ends and a longer middle section [1] Group 2: Railway Specifications - The Chongqing-Wanzhou High-Speed Railway (Yuwan High-Speed Railway) is part of China's "Eight Vertical and Eight Horizontal" high-speed rail network, specifically the Yinchuan (Yin) to Haikou (Hai) and Beijing (Jing) to Kunming (Kun) corridors [1] - The railway line has a total length of 251 kilometers and is designed for a maximum speed of 350 kilometers per hour [1]

Core Viewpoint - The successful completion of the main span of the Caijia Gorge Double-Line Bridge marks a significant milestone for the Chongqing-Wanzhou High-Speed Railway, ensuring the project remains on schedule for timely operation [1][2]. Group 1: Project Overview - The Chongqing-Wanzhou High-Speed Railway is part of China's "Eight Vertical and Eight Horizontal" high-speed rail network, connecting Chongqing East Station to Wanzhou North Station over a total length of 251 kilometers with a design speed of 350 kilometers per hour [2]. - The Caijia Gorge Double-Line Bridge, located in Fuling District, spans approximately 2,113 meters and is considered a critical and challenging engineering component of the railway [2]. Group 2: Construction Challenges - The bridge construction faced numerous challenges due to its location in a hilly valley area, which included risks such as falling rocks, landslides, and adverse geological conditions [2]. - The project team successfully addressed various construction difficulties, including precision control for high pier construction and temperature management for large-volume concrete, while introducing new technologies and methods to facilitate progress [2]. Group 3: Economic Impact - Once operational, the Chongqing-Wanzhou High-Speed Railway is expected to significantly enhance connectivity between the urban areas of Northeast Chongqing and the main urban area, greatly benefiting local residents and promoting economic and social development along the route [4].

致：香港交易及結算所有限公司 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 公司名稱: 中國鐵建股份有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01186 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 2,076,296,000 | RMB | | 1 RMB | | 2,076,296,000 | | 增加 / 減少 (-) | | | | | | RMB | | | | 本月底結存 | | | 2,076,296,000 | RMB | | 1 RMB | | 2,076,296,000 | | 2. 股份分類 | 普通股 | 股份類別 | A | | ...