Tianfeng Securities·2025-08-10 11:13Investment Rating - Industry Rating: Outperform the market (maintained rating) [7] Core Viewpoints - The report highlights that 2025 marks the 70th anniversary of the Xinjiang Autonomous Region, and under the support of policies and demand, regional infrastructure is expected to remain resilient. Key recommendations include China Railway and China Railway Construction in infrastructure, and companies like Sanwei Chemical and China Chemical in the coal chemical sector [1][15]. Summary by Sections Infrastructure Investment in Xinjiang - Significant traffic infrastructure projects are accelerating, with the establishment of the Xinjiang-Tibet Railway Company and plans for the new railway to commence construction in November 2025. Fixed asset investment in Xinjiang grew by 13% year-on-year in the first half of 2025, surpassing the national average of 10.2% [2][20]. - The Xinjiang government is focusing on enhancing investment efficiency and developing ten industrial clusters, including hydrogen energy and intelligent computing, indicating potential policy support for infrastructure development [3][25]. Coal Chemical Investment - The report estimates that planned coal chemical projects in China total 1,032.9 billion yuan, with Xinjiang accounting for 491.64 billion yuan. The average annual investment from 2025 to 2029 is projected to be 206.58 billion yuan, a 220.6% increase compared to the 2021-2023 average [4][27]. - Several major coal chemical projects are underway in Xinjiang, with significant investments expected to continue, highlighting the region's advantageous resource endowment [29][30]. Market Performance - The construction index rose by 1.83% in the week of August 4-8, 2025, outperforming the CSI 300 index by 0.11%. Notable stock performances included Shanghai Port and Xinjiang Communications Construction [6][34]. - The report emphasizes the importance of infrastructure investment in achieving economic growth targets, with a focus on water conservancy, railways, and aviation projects, particularly in high-growth regions like Sichuan and Zhejiang [40].