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].

Summary of the Construction Industry Conference Call Industry Overview - The construction industry is entering a plateau phase, with a projected decline in corporate revenue for the first time in 2024, leading to an increase in receivables and weaker cash flow and profitability [1][2] - Infrastructure investment growth is expected to stabilize at 5-6% in 2025, supported by accelerated government bond issuance, although much of the new funding will be used for debt resolution rather than actual construction [1][5] Key Investment Directions - Future investments should focus on two main areas: external demand transformation and high dividend yields, along with quality business models [1][2] - Significant attention should be given to major national strategies and safety-related projects, such as special government bonds supporting dual construction initiatives, desertification control in Northeast China, and coal chemical projects in Xinjiang [1][7] Company Performance and Recommendations - In 2024, only China Energy Engineering and China Chemical Engineering are expected to achieve revenue growth, with similar expectations for 2025 [1][14] - Recommended stocks include: - **China Construction**: Strong dividend stability with an expected yield of 4-5% in 2025 [3][16] - **China Chemical**: Fast order growth and positive corporate improvement outlook [3][16] - **Sichuan Road & Bridge**: Notable for its high dividend yield and strong order backlog [17] Structural Opportunities - The construction industry is at a crossroads of transformation, with many small-cap companies in sectors like landscaping and decoration presenting merger and acquisition opportunities [4][31] - The manufacturing sector is outperforming infrastructure and real estate investments, with specific focus on power, water conservancy, and water transport investments [8] Economic Environment Impact - The overall economic environment is stable, with Q1 GDP at 5.4% and expectations for Q2 to exceed 5% [5] - Government bond issuance is robust, with special bonds increasing from 1 trillion in 2024 to 1.3 trillion in 2025, primarily for dual construction projects [7] Market Performance - In the first half of 2025, the construction industry ranked 28th in market performance, down 2.1%, with traditional state-owned enterprises underperforming [11] - Small-cap transformation companies have shown better performance compared to large state-owned enterprises [11] Industry Characteristics and Stock Selection - The construction industry is characterized by light assets, high debt, labor intensity, and a lack of significant scale advantages [12] - Stock selection should prioritize manufacturing, followed by new economy sectors, specialized engineering, and quality regional enterprises [12] Future Trends and Risks - Traditional state-owned enterprises face pressure from aging infrastructure projects, necessitating a focus on emerging fields and specialized markets [13] - The overall industry is expected to face significant pressure in 2025, with conservative performance expectations for most companies [14] Conclusion - The construction industry is currently in a transitional phase, with a need for strategic focus on high dividend stocks, emerging sectors, and structural opportunities through mergers and acquisitions. The economic environment remains stable, but the industry faces challenges that require careful navigation and selection of investment opportunities.

Core Insights - The construction industry is officially entering a platform period, with infrastructure investment maintaining resilience but showing signs of decline in revenue among major state-owned enterprises [5][28][30] - The overall investment tone for infrastructure in the second half of 2025 will focus on stability, supported by proactive fiscal policies and accelerated government bond issuance [2][37] - Structural opportunities are emerging, particularly in manufacturing, power, water conservancy, and water transport sectors, driven by special government bonds [5][6] Industry Overview - The construction industry has seen a decline in total revenue for the first time in 2024, confirming a turning point for the industry [30] - The total revenue for the construction industry in 2024 was 86,962.78 billion, a decrease of 4.29% year-on-year, with net profit dropping by 13.74% [30][32] - The share of real estate in GDP has been declining since its peak in 2021, while infrastructure investment has been rising but not enough to offset the decline in real estate [26][28] Investment Strategy - Long-term investment should focus on manufacturing-oriented companies like Honglu Steel Structure, while short-term strategies should prioritize high-dividend stocks and significant changes in individual companies [6][7] - The report emphasizes the importance of structural opportunities in the construction sector, particularly in areas aligned with national strategic initiatives and safety capabilities [60] State-Owned Enterprises - There is a growing divergence among state-owned construction enterprises, with only a few, such as China State Construction and China Energy Engineering, showing positive growth in Q1 2024 [7][28] - The report recommends focusing on companies with strong dividend stability and growth potential, such as China Chemical Engineering and China Communications Construction [7][8] Professional Engineering and International Opportunities - The international engineering sector is expected to benefit from ongoing orders and the deepening of cooperation along the Belt and Road Initiative [8] - Companies like China National Materials and China Steel International are highlighted for their low valuations and high dividend yields, indicating strong performance potential [8] Mergers and Acquisitions - The construction industry is moving towards maturity, necessitating mergers and acquisitions to find new growth points [10] - The report anticipates that future mergers will primarily come from smaller, weaker segments of the industry, such as design and decoration [10]

Investment Rating - The report maintains a "Positive" investment rating for the construction and engineering sector [12] Core Insights - The construction sector is favored for high dividend investment opportunities, particularly in Hong Kong and A-shares [2] - Key companies highlighted include China State Construction, Sichuan Road and Bridge, and international engineering firms benefiting from the Belt and Road Initiative [2][10] - The report emphasizes the importance of stable growth and infrastructure as a cornerstone of economic development, with significant government spending planned for 2025 [9] Summary by Sections High Dividend Opportunities - The report continues to favor high dividend investment opportunities in the construction sector, particularly focusing on state-owned enterprises and local government enterprises [2] - China State Construction is identified as a top pick due to its strong fundamentals and high dividend yield [10] Performance of Hong Kong Construction Stocks - Hong Kong construction stocks have performed well, with notable increases in share prices for companies like China Communications Construction and China Railway Group [8] - The report attributes this performance to overall market strength and significant liquidity inflows [8] A-Share Recommendations - In A-shares, China State Construction is recommended for its high dividend yield and robust order growth, with new contracts expected to reach 1.4149 trillion yuan in 2024, a 21.1% increase year-on-year [10] - Sichuan Road and Bridge is highlighted for its increasing dividend payout ratio and confidence in future growth [10] International Engineering Opportunities - The report emphasizes the potential of international engineering firms, particularly those involved in the Belt and Road Initiative, with companies like China Steel International and China National Materials recommended for their high dividend yields [10] Market Outlook - The outlook for 2025 remains positive, with infrastructure investment expected to benefit from government policies and increased fiscal spending [9][10] - The report notes that the construction sector is positioned to capitalize on these trends, making it an attractive investment area [9]

Core Viewpoint - The company announced a cash dividend distribution plan for the year 2024, proposing to distribute 2.99 RMB per 10 shares to shareholders, with a total cash distribution amounting to approximately 428.96 million RMB, which represents 51.36% of the net profit attributable to the parent company for 2024 [2][4]. Group 1: Dividend Distribution Plan - The proposed dividend distribution is 2.99 RMB per 10 shares (including tax), with no stock bonus or capital increase [2][4]. - The total number of shares for the distribution is based on the total share capital of 1,434,644,621 shares as of December 31, 2024 [2][4]. - The cash dividend distribution will be executed on June 13, 2025, with the record date set for June 12, 2025 [3][4]. Group 2: Taxation and Distribution Method - The cash dividends will be distributed directly to shareholders' accounts through their securities companies on the payment date [6]. - Different tax rates apply for various categories of shareholders, with specific provisions for Hong Kong investors and domestic investors [4][6]. - The company will not withhold individual income tax at the time of distribution; instead, it will be calculated based on the holding period when shares are sold [4]. Group 3: Approval and Documentation - The profit distribution proposal was approved at the annual general meeting held on May 15, 2025 [3]. - The company has committed to ensuring the accuracy and completeness of the information disclosed regarding the dividend distribution [1]. - Relevant documents related to the dividend distribution will be available for review, including resolutions from the board and the annual general meeting [6].

Group 1 - The company has approved a profit distribution plan for the year 2024, proposing a cash dividend of RMB 2.99 per share (including tax), totaling approximately RMB 428.96 million, which accounts for 51.36% of the net profit attributable to shareholders of the parent company for 2024 [1][2] - The distribution will be based on the current total share capital of 1,434,644,621 shares, with a payment of RMB 2.99 for every 10 shares held [2] - The equity registration date is set for June 12, 2025, and the ex-dividend date is June 13, 2025 [2][3] Group 2 - The cash dividend will be subject to different tax treatments for various categories of shareholders, with specific provisions for Hong Kong investors and domestic investors [2] - The company will not withhold individual income tax at the time of distribution, but will calculate tax obligations based on the holding period when shares are sold [2] - The company assumes all legal responsibilities for any shortfall in cash dividends due to a decrease in shares held by shareholders during the distribution application period [4]

特别提示： 1. 权益分派方案：每 10 股派发现金 2.99 元（含税），不送红股，不转增股 本 2. 股权登记日：2025 年 6 月 12 日 3. 除权除息日：2025 年 6 月 13 日 一、股东大会审议通过利润分配方案的情况 证券代码：000928 证券简称：中钢国际 公告编号：2025-23 中钢国际工程技术股份有限公司 2024 年年度权益分派实施公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚 假记载、误导性陈述或重大遗漏。 中钢国际工程技术股份有限公司（以下简称"公司"）第十届董事会第七次 会议审议通过了《关于 2024 年年度利润分配预案的议案》，公司拟以 2024 年 12 月 31 日的总股本 1,434,644,621 股为基数，以未分配利润向全体股东每 10 股 派发现金红利人民币 2.99 元（含税），不送红股，不以公积金转增股本。本次 共计派发现金 428,958,741.68 元，占合并报表 2024 年归属于母公司股东净利润 的 51.36%。具体内容详见公司 2025 年 4 月 24 日在《上海证券报》《证券时报》 及巨潮资讯网披露的《关于 2 ...

Group 1 - The report highlights that fixed asset investment growth has slowed down, with manufacturing and real estate under pressure, while infrastructure investment remains relatively stable, supported by public utilities and water conservancy [3][5][10] - Regional investment is expected to gain elasticity with the national strategic layout, particularly in 2025, which is a pivotal year for the "14th Five-Year Plan" and the planning of the "15th Five-Year Plan," with opportunities arising from the transfer of industries to the central and western regions, urban renewal, low-altitude economy, and the "Belt and Road" initiative [3][24][62] - The report indicates that undervalued state-owned enterprises (SOEs) are likely to see valuation recovery, as the market has discounted their long-term cash flow and asset realizability due to concerns over asset quality, despite stable dividend policies [3][24][62] Group 2 - The report emphasizes that investment will be a key focus, with strong fiscal capabilities in major economic provinces driving investment in urban renewal and low-altitude economy, while weaker regions will attract social capital to complement central and local government financing [26][30] - The report notes that the central and western regions are expected to see increased investment opportunities due to policy guidance for industrial transfer, with significant potential in areas like Sichuan, Xinjiang, and the Chengdu-Chongqing region [30][62] - The report identifies specific companies to watch for investment opportunities, including Sichuan Road and Bridge, Xinjiang Communications Construction, and companies involved in urban renewal and low-altitude economy [3][62] Group 3 - The report discusses the low valuation of construction companies, which are primarily asset-backed by accounts receivable, leading to market skepticism about their cash flow and asset realizability [3][68] - It highlights that the construction industry is capital-intensive and relies heavily on financing for balance sheet expansion, which has resulted in a low pricing of assets in the market [68]

Core Viewpoint - The special graphite industry is experiencing significant growth driven by increasing demand in various sectors such as photovoltaics, semiconductors, and new energy batteries, supported by government policies and technological advancements [1][13]. Industry Overview - Special graphite, characterized by a carbon content greater than 99.99%, is essential in strategic emerging industries due to its high strength, density, and purity [3]. - The demand for special graphite in China is projected to grow from 115,000 tons in 2019 to 250,000 tons by 2024, with a compound annual growth rate (CAGR) of 16.80% [1][13]. Market Demand and Supply - The production of special graphite in China increased from 60,000 tons in 2019 to 134,100 tons in 2023, with a slight decline expected in 2024 to 121,300 tons, reflecting a 9.5% decrease from the previous year [11]. - The market for isotropic graphite is dominated by fine structure graphite, which accounted for 111,616 tons in 2024, despite a 9.33% decline from 2023 [11]. Technological Characteristics - Special graphite materials possess key physical and chemical properties, including high volume density, compressive strength, and low resistivity, which are critical for various applications [5][6]. Policy Support - The Chinese government has implemented several policies to promote the development of the special graphite industry, including the inclusion of high-performance graphite in encouraged categories for investment [7][9]. Competitive Landscape - The special graphite industry in China is characterized by a relatively low concentration of large-scale enterprises, with key players including Wuxing New Materials, Chengdu Carbon Materials, and Ningxin New Materials [17][19]. - The industry is witnessing a shift towards domestic production of high-end graphite products, reducing reliance on imports [15][23]. Future Trends - The demand for high-end special graphite products is expected to increase, particularly in sectors like photovoltaics and lithium batteries, with annual growth rates projected to exceed 20% [26]. - Environmental policies are pushing the industry towards greener and more sustainable practices, emphasizing energy efficiency and resource recycling [24].

Financial Performance - The company's asset-liability ratio for 2024 is 68.49%, indicating a high level of debt. The company plans to optimize its capital structure to reduce this ratio by 4.28 percentage points through financing structure optimization and improved capital efficiency [4] - In 2024, the net cash flow from operating activities was CNY 1.504 billion, a 9.95% increase compared to the previous year [8] Market Expansion and Strategy - The company aims to strengthen its presence in new markets, particularly in the Middle East and Africa, by enhancing personnel allocation and providing comprehensive production operation services [5][7] - In 2025, the company will focus on high-end, green, and intelligent development trends in the steel industry, integrating internal and external innovation resources to upgrade core equipment and technologies [5][7] Competitive Advantages - The company's core competitive advantage lies in its technological innovation, specializing in low-carbon metallurgy technology and providing integrated green engineering services throughout the lifecycle [6] - With nearly 30 years of international experience, the company possesses strong capabilities in managing large-scale international engineering projects and market integration [6] Industry Trends - The steel industry is entering a new phase of "reduction and quality improvement," with overall steel demand declining due to a slowdown in infrastructure construction and the peak of the real estate sector [6] - The company plans to leverage its engineering technology advantages to seize opportunities in industry consolidation and low-carbon transformation [6] Project Updates - The company successfully launched the Tosyali Phase IV green low-carbon steel plant in Algeria, which is the largest electric furnace project in the country [9][10] - The MMK 2.5 million tons/year coking project, utilizing the company's proprietary technology, has also been successfully completed [10] Internationalization Plans - In 2025, the company will maintain its international strategy while focusing on risk prevention, aiming to deepen existing markets and explore new clients in the Middle East and Africa [12]