Investment Rating - The report maintains a "Positive" investment rating for the construction and engineering industry [10]. Core Insights - The Central Urban Work Conference held on July 14-15 emphasized the transition of urbanization in China from a rapid growth phase to a stable development phase, focusing on quality urban renewal rather than large-scale expansion [8][13]. - The conference outlined key tasks for urban development, including optimizing modern urban systems, building innovative cities, and enhancing livability and sustainability [13]. - The report highlights the historical significance of this conference, marking a shift towards high-quality urban development, contrasting with previous meetings that focused on rapid expansion and basic infrastructure [13]. - Future funding for urban renewal is expected to come from various sources, including special central budget investments and local government bonds, indicating potential for increased capital inflow into the sector [13]. - The report suggests that the construction sector should focus on leading companies and the entire design-construction-operation chain, particularly in urban renewal projects [13]. Summary by Sections Event Description - The Central Urban Work Conference took place in Beijing, with significant speeches from top leaders, indicating a strategic shift in urbanization policy [8][9]. Market Performance - The report includes a market performance comparison over the past 12 months, showing a relative performance of the construction and engineering sector against the CSI 300 index [11]. Related Research - The report references several related studies that discuss urban renewal and the construction industry's response to current challenges [12].

Group 1 - The company, Huashu Design Group Co., Ltd., has applied for a patent for a new type of prefabricated assembly high-strength composite guardrail for bridges, with publication number CN120311587A and application date of May 2025 [1] - The patent describes a prefabricated concrete base unit that connects to the bridge deck and secures a steel guardrail unit, enhancing construction quality and reducing difficulty [1] - The design includes features such as wet joint grooves, circular rebar, and U-shaped rebar, which improve the connection between the guardrail and the bridge deck, ensuring better quality of prefabricated guardrails [1] Group 2 - Huashu Design Group Co., Ltd. was established in 2005 and is located in Nanjing, primarily engaged in professional technical services [2] - The company has a registered capital of 683.78 million RMB and has invested in 82 enterprises, participated in 5,000 bidding projects, and holds 649 patents [2] - Additionally, the company has 77 trademark registrations and 122 administrative licenses [2]

Summary of Key Points Core Viewpoint - 华设集团's stock closed at 8.18 yuan on July 11, 2025, with a slight increase of 0.25% and a trading volume of 95,600 shares, amounting to a total transaction value of 77.6895 million yuan [1]. Trading Information - On July 11, 2025, the capital flow for 华设集团 showed a net inflow of 7.0064 million yuan from main funds, accounting for 9.02% of the total transaction value. In contrast, retail investors experienced a net outflow of 4.4389 million yuan, representing 5.71% of the total transaction value, while speculative funds saw a net outflow of 2.5675 million yuan, making up 3.3% of the total transaction value [2][4]. Company Announcements - 华设设计集团股份有限公司 announced the interest payment details for its "华设转债" (convertible bonds) for the year 2025. The key points include: - The bond interest record date is set for July 18, 2025. - The interest payment date is July 21, 2025. - The interest period for this payment is from July 21, 2024, to July 20, 2025, with a coupon rate of 0.50% (including tax). - Each bond with a face value of 100.00 yuan will yield an interest payment of 0.50 yuan (including tax). - The payment will be made to all registered holders of "华设转债" as of the close of trading on July 18, 2025 [2][4].

Investment Rating - The industry rating is maintained as "Outperform the Market" [5] Core Insights - The construction sector has seen a significant increase in attention towards urban renewal, with undervalued large-cap stocks showing signs of stabilization. The sector's performance is driven by improved demand-side policy expectations and a shift away from excessive competition, benefiting both large and small-cap stocks. The report suggests focusing on high-growth segments such as urban renewal, coal chemical, nuclear power, and steel structures, while also considering the beta opportunities in large-cap stocks [1][13][14]. Summary by Sections Urban Renewal - Urban renewal is accelerating, with policies from the central government outlining goals and support measures. The focus includes the renovation of old residential areas, establishing safety management systems for buildings, and creating resilient and smart cities. The report identifies four key categories for investment: design and testing, construction and decoration, urban infrastructure renovation, and resilient/smart city initiatives, highlighting specific companies in each category [2][15][17]. Market Performance - The construction index rose by 2.77% in the week of July 7-11, outperforming the Shanghai and Shenzhen 300 index by 1.76 percentage points. Notable performers included Guosheng Technology (+42.98%), New City (+34.73%), and Beautiful Ecology (+34.46%) [4][21][26]. Investment Recommendations - The report emphasizes the cyclical opportunities arising from improved physical work volume in infrastructure. It suggests focusing on high-demand areas such as water conservancy, railways, and aviation, particularly in regions like Sichuan, Zhejiang, Anhui, and Jiangsu. Recommended companies include Sichuan Road and Bridge, Zhejiang Communications, and major state-owned enterprises like China Communications Construction and China Railway Construction [27][28]. Emerging Business Directions - The report highlights the growing demand for computing power driven by AI applications, recommending companies like Hainan Huatie for their transition into computing power leasing. It also notes the potential in cleanroom sectors due to the ongoing domestic replacement in the semiconductor industry, suggesting companies like Baicheng and Shenghui Integration [29][30]. Major Projects and Themes - The report identifies significant investment opportunities in major hydropower projects, deep-sea economy, and low-altitude economy, recommending companies involved in these sectors, such as China Power Construction and China Energy Engineering [32][30].

Group 1 - The core stock price of Huasheng Group (603018) closed at 8.18 yuan on July 11, 2025, reflecting a 1.24% increase from the previous week's closing price of 8.08 yuan [1] - The highest intraday price for Huasheng Group this week was 8.21 yuan on July 9, while the lowest was 8.02 yuan on July 10 [1] - The current total market capitalization of Huasheng Group is 5.593 billion yuan, ranking 12th out of 41 in the engineering consulting services sector and 2768th out of 5149 in the A-share market [1] Group 2 - Huasheng Group announced the interest payment for its convertible bonds (Huasheng Convertible Bonds) for the year 2025, with a face value of 100 yuan and an interest amount of 0.50 yuan per bond [1] - The bond interest record date is set for July 18, 2025, and the interest payment date is July 21, 2025 [1] - The interest rate for this bond is 0.50% (including tax), and the actual interest received by individual bondholders after a 20% personal income tax will be 0.40 yuan [1]

Core Viewpoint - The announcement details the interest payment schedule for the convertible bonds issued by the company, highlighting key dates and terms related to the bond's interest payments and adjustments to the conversion price [1][4]. Summary by Sections Convertible Bond Issuance Overview - The company issued convertible bonds on July 21, 2023, with a maturity date of July 20, 2029. The interest rates are set at 1.80% for the fifth year and 2.00% for the sixth year [1]. Interest Payment Details - The interest payment for the convertible bonds will occur annually, with the first payment starting on July 21, 2025. The annual interest rate is 0.50%, meaning each bond with a face value of RMB 100.00 will yield RMB 0.50 in interest (including tax) [4][5]. Key Dates for Interest Payment - The bondholder registration date for interest payment is July 18, 2025. The ex-dividend date and interest payment date are both set for July 21, 2025 [1][4]. Payment Method and Taxation - The company will transfer the interest payments to the designated bank account of the China Securities Depository and Clearing Corporation Limited within two trading days prior to the payment date. Individual bondholders are responsible for paying a 20% tax on the interest income, resulting in a net payment of RMB 0.40 per bond after tax [5][6]. Conversion Price Adjustments - The conversion price for the bonds will be adjusted due to annual profit distributions. The price will change from RMB 8.86 per share to RMB 8.55 per share starting July 5, 2024, and further to RMB 8.45 per share from June 18, 2025 [3].

本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： | 证券代码：603018 | 证券简称：华设集团 | 公告编号：2025-039 | | --- | --- | --- | | 转债代码：113674 | 转债简称：华设转债 | | 华设设计集团股份有限公司 关于"华设转债"2025 年付息公告 华设设计集团股份有限公司（以下简称"本公司"或"公司"）于 2023 年 7 月 21 日发行的可转换公司债券将于 2025 年 7 月 21 日开始支付自 2024 年 7 月 21 日至 2025 年 7 月 20 日期间的利息。根据本公司《华设设计集团股份有限公 司向不特定对象发行可转换公司债券并在主板上市募集说明书》（以下简称"《募 集说明书》"）有关条款的规定，现将有关事项公告如下： 一、可转债发行上市概况 1、债券名称：华设设计集团股份有限公司可转换公司债券 2、债券简称：华设转债 3、债券代码：113674 4、债券类型：可转换为公司 A 股股票的可转换公司债券 5、发行总额：本次发行的可转债总额为人民 ...

Summary of Key Points Core Viewpoint - The announcement details the conversion results of the convertible bonds issued by Huashe Design Group, highlighting the limited conversion activity and the remaining unconverted bonds. Group 1: Conversion Status - As of June 30, 2025, a total of RMB 111,000.00 of "Huashe Convertible Bonds" has been converted into common stock, resulting in 12,613 shares, which represents 0.0018% of the company's total shares before conversion [1][3]. - During the period from April 1, 2025, to June 30, 2025, RMB 2,000.00 of "Huashe Convertible Bonds" was converted into common stock, resulting in 233 shares [2][3]. Group 2: Unconverted Bonds - As of June 30, 2025, the amount of unconverted "Huashe Convertible Bonds" stands at RMB 399,889,000.00, accounting for 99.9723% of the total issuance [1][4]. Group 3: Bond Issuance and Listing - The company issued 4 million convertible bonds on July 21, 2023, at a face value of RMB 100 each, raising a total of RMB 40 million, with a maturity of 6 years [2]. - The bonds were listed on the Shanghai Stock Exchange on August 15, 2023, under the name "Huashe Convertible Bonds" and code "113674" [2]. Group 4: Conversion Price Adjustments - The initial conversion price was set at RMB 8.86 per share, which was adjusted to RMB 8.55 per share effective July 5, 2024, and further adjusted to RMB 8.45 per share effective June 18, 2025, due to the company's annual equity distribution [3]. Group 5: Share Capital Changes - The total share capital increased from 683,793,332 shares to 683,793,565 shares due to the conversion of bonds, reflecting the addition of 233 shares [5].

| 证券代码：603018 | 证券简称：华设集团 | 公告编号：2025-038 | | --- | --- | --- | | 转债代码：113674 | 转债简称：华设转债 | | 华设设计集团股份有限公司 可转债转股结果暨股份变动公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 一、可转债发行上市概况 （一）可转债发行情况 经中国证券监督管理委员会（以下简称"中国证监会"）《关于同意华设设 计集团股份有限公司向不特定对象发行可转换公司债券注册的批复》（证监许可 [2023]1322 号）同意，华设设计集团股份有限公司（以下简称"公司"或"本公 司"）于 2023 年 7 月 21 日向不特定对象发行可转换公司债券 400.00 万张，发 行价格为每张面值 100 元人民币，按面值发行，期限 6 年，募集资金总额为人民 币 40,000.00 万元。可转债票面利率为：第一年 0.30%、第二年 0.50%、第三年 1.00%、第四年 1.50%、第五年 1.80%、第六年 2.00%。 （二）可转债上 ...

Core Viewpoint - The credit rating agency maintains the credit rating of China Huase Design Group Co., Ltd. at AA with a stable outlook, reflecting the company's strong market position in the surveying and design sector, despite challenges in new contract acquisition and cash flow management [3][28]. Company Overview - China Huase Design Group has a complete and high-level design qualification, maintaining a strong market position in the transportation surveying and design field in Jiangsu Province [3][16]. - The company has a diversified ownership structure with no controlling shareholder, which raises concerns about management stability [4][15]. Financial Performance - As of March 2025, the total assets of the company were 122.82 billion, with total liabilities at 69.53 billion, indicating a decrease in both assets and liabilities compared to previous years [7][25]. - The operating revenue for 2024 was 44.28 billion, down from 53.53 billion in 2023, reflecting a declining trend in business scale [7][22]. - The net profit for the first quarter of 2025 was 0.58 billion, showing a significant decrease compared to previous periods [7][22]. Contract Acquisition and Market Position - The new contract amount for 2024 was 68.79 billion, a decline from 74.31 billion in 2023, primarily due to reduced demand in traditional road and municipal projects [18][19]. - The company remains focused on government investment projects, with government clients accounting for approximately 94.80% of new contracts [18][19]. Cash Flow and Debt Management - The company has maintained positive operating cash flow, with a net cash inflow of 3.07 billion in the first quarter of 2025, although this represents a decline from previous periods [7][22]. - As of March 2025, the company had a total debt of 9.40 billion, with a debt-to-EBITDA ratio of 1.69, indicating manageable debt levels compared to industry standards [7][25]. Industry Outlook - The construction industry is facing challenges due to a downturn in the real estate sector, which is expected to continue affecting demand for construction services [10][12]. - Despite these challenges, infrastructure investment remains a key support for the construction market, with government and central enterprises taking on more investment responsibilities [12][13].