GUOTAI HAITONG SECURITIES·2026-03-02 02:40Investment Rating - The report assigns an "Accumulate" rating for the construction engineering industry [7] Core Insights - The report highlights the rising prices of cyclical copper resources and chemical products, leading to a reevaluation of the value of related construction companies [1] - Recommended stocks include China Railway, China Electric Power, Shanghai Construction, China Chemical, and Northern International, with additional mentions of Sanwei Chemical, Donghua Technology, and Southeast Network Framework [2][3] Summary by Sections Resource Sector - LME copper spot prices remain high, with a price of $13,000 per ton on February 26, reflecting a 39% year-on-year increase [3] - China Railway's production forecast for H1 2025 includes 149,000 tons of copper, 3,000 tons of cobalt, and 7,000 tons of molybdenum, with respective year-on-year changes of -0.9%, -0.2%, and -7.5% [3] - The net profit of China Railway Resources for H1 2025 is projected at 2.58 billion yuan, a 27.4% increase, accounting for 22% of total profits [3] Chemical Sector - China Chemical focuses on high-value chemical new materials, with a 200,000 tons/year adiponitrile facility expected to achieve full production by December 2025 [5] - The demand for new chemical materials is driving the industry towards higher value chains, with Northern International expected to sell 4.48 million tons of coking coal in 2025, a 12.5% decrease [6] Company Performance - China Railway's market capitalization is estimated at 155.52 billion yuan, with a comparable market value of its mineral resources business at 107.33 billion yuan, leading to a PE ratio of approximately 2.5 for its construction business [3] - China Electric Power holds a 25.28% stake in Huagang Mining, with an expected investment return of 1 billion yuan [4] - Shanghai Construction, focusing on gold mining, sold 30,421 ounces of gold in the first three quarters of 2025, generating approximately 690 million yuan in revenue [4]