Soochow Securities·2025-06-02 14:23Investment Rating - The report maintains an "Overweight" rating for the construction and decoration industry [1] Core Views - The construction PMI has shown improvement, particularly in civil engineering, indicating a recovery in project activity [5][10] - The report highlights the growth in overseas contracting, with a completed turnover of USD 47.11 billion in the first four months of 2025, a year-on-year increase of 6.8% [11] - The report emphasizes the structural demand in specific sectors such as water conservancy and cleanroom engineering, which are expected to remain robust [11] Summary by Sections Industry Trends - The construction PMI for May is reported at 51.0%, a decrease of 0.9 percentage points from the previous month, indicating a slowdown in expansion [21] - The civil engineering PMI increased to 62.3%, reflecting accelerated construction activity in infrastructure projects [21] - New order index rose to 43.3%, showing improved project expectations, while the employment index increased to 39.5%, indicating a bottoming out of employment conditions [21] Overseas Expansion - In the first four months of 2025, new contracts signed in Belt and Road countries reached USD 64.54 billion, a year-on-year increase of 17.4% [11] - The report suggests that geopolitical tensions may lead to increased cooperation in infrastructure projects, particularly in Europe and ASEAN regions [11] Investment Opportunities - The report identifies potential investment opportunities in specialized manufacturing sectors, energy-saving, and new energy-related infrastructure, recommending companies like Honglu Steel Structure and Huayang International [11] - The semiconductor cleanroom sector is expected to maintain its growth, with companies like Yaxiang Integration and Bocheng Co., Ltd. being highlighted [11] Market Performance - The construction and decoration sector saw a weekly increase of 1.12%, outperforming the Shanghai Composite Index, which decreased by 1.08% [27] - The report lists top-performing stocks, including Hopu Co., Ltd. and *ST Chuangxing, which showed significant gains [28]