申万宏源建筑周报：城市更新规划加快推进，存量市场持续挖掘-20250518

Investment Rating - The industry investment rating is "Overweight" indicating a positive outlook for the sector compared to the overall market performance [2][29]. Core Insights - The report highlights the acceleration of urban renewal planning and the continuous exploration of the stock market, emphasizing the importance of sustainable urban development and infrastructure improvement [3][14]. - The construction sector is experiencing a recovery in infrastructure investment, with cyclical high-elasticity investment opportunities becoming more prominent [3][14]. - Key companies in the sector are recommended based on their performance and market conditions, including specific recommendations for steel structure companies and urban renewal projects [3][14]. Summary by Sections 1. Market Performance - The construction industry saw a weekly increase of +0.77%, outperforming the Shanghai Composite Index (+0.76%) and Shenzhen Component Index (+0.52%) [4][5]. - The best-performing sub-industries for the week were steel structures (+2.28%), decorative curtain walls (+1.38%), and central enterprises in infrastructure (+1.22%) [5][9]. 2. Major Changes in the Industry - The Central Committee and State Council are focusing on enhancing urban infrastructure construction and promoting new urban infrastructure development, aiming for a sustainable urban renewal model [14]. - The People's Bank of China reported that as of the end of April, the broad money supply (M2) was 325.17 trillion yuan, a year-on-year increase of 8% [14]. - The Ministry of Commerce announced a reduction in tariffs between China and the US, which is expected to positively impact bilateral trade relations [14]. 3. Key Company Updates - China Nuclear Engineering Corporation reported new contracts totaling 57.56 billion yuan and revenue of 34.886 billion yuan as of April 2025 [18]. - China Metallurgical Group Corporation saw a year-on-year decrease of 24.9% in new contracts amounting to 308.4 billion yuan from January to April 2025 [18][17]. - Hai Bo Heavy Industry announced a cash dividend of 1.00 yuan per share, totaling 19.79 million yuan [16]. 4. Investment Analysis - The report suggests that infrastructure investment is set to recover in 2025, with high-elasticity sectors presenting significant investment value [3][14]. - Recommended companies include Honglu Steel Structure, Shenzhen Ruijie, and Huayang International for urban renewal projects, as well as China Railway and China Communications Construction for state-owned enterprises [3][14].