Changjiang Securities·2025-06-27 08:16Investment Rating - The report maintains a "Positive" investment rating for the industry [12] Core Insights - Infrastructure investment shows resilience, with a marginal recovery in PMI indicators, although manufacturing PMI remains below 50, indicating a contraction [6][20] - In May, narrow infrastructure investment was 1.8 trillion yuan, a year-on-year increase of 5.1%, with transportation investment slightly increasing while water conservancy investment growth has declined [7][26] - Cement production has seen an expanded decline, with a 4% year-on-year drop from January to May [9][12] - Government bond issuance slowed in May, raising concerns about the utilization of already issued funds [10][12] Summary by Sections Investment & Orders - Infrastructure investment remains resilient, with a PMI of 51.0% in May, down 3.4 percentage points year-on-year and 0.9 percentage points month-on-month [6][20] - New orders index at 43.3%, a year-on-year decrease of 0.8% but a month-on-month increase of 3.7% [20] - Major construction companies like China National Materials and China Nuclear Engineering have shown strong overseas order performance [8][45] Physical Workload - Cement production has decreased by 4% year-on-year from January to May, with a significant drop in weekly cement dispatches [9][12] - The demand for cement in infrastructure projects remains stable, influenced by a decline in residential construction investment [9][12] Project Funding - As of June 24, the funding availability rate for construction sites was 59.11%, with non-residential projects at 61.02% and residential projects at 49.59% [10][12] - In May, special bond issuance was 425 billion yuan, with a cumulative issuance of 16,904 billion yuan since the beginning of the year, reflecting a year-on-year increase of 3,583 billion yuan [10][12]