Investment Rating - The report maintains an "Overweight" rating for the construction decoration industry [1] Core Viewpoints - The construction sector's mid-year performance is under pressure, with revenue and profit still facing challenges, although cash flow has improved. The overall sector remains under pressure due to weak infrastructure and real estate investments, but some specialized engineering fields are performing relatively well. The construction PMI for August has dropped into contraction territory, indicating a slowdown in construction activities and a persistently low new order index. There is potential for increased fiscal policy support to boost growth [2][11] - The report highlights the importance of urban renewal and major infrastructure investment projects, suggesting that central fiscal efforts and funding support could accelerate the implementation of key projects, particularly in regions like Xinjiang, Tibet, and Sichuan-Chongqing [2][11] - The overseas contracting business has shown growth, with a 9.3% year-on-year increase in completed operating revenue and a 13.7% increase in new contracts signed in the first half of 2025. The report suggests that the Belt and Road Initiative will continue to drive infrastructure cooperation, benefiting overseas engineering demand [3][12] - There are investment opportunities in specialized manufacturing engineering, energy-saving, and carbon reduction sectors, as well as in new energy-related infrastructure fields. Companies with relevant transformation layouts are expected to benefit [3][12] Summary by Sections Industry Viewpoints - The construction sector's mid-year report indicates continued pressure on revenue and profit, with cash flow showing some improvement. The overall industry remains weak, with a decline in the construction PMI and a slowdown in new orders. There is potential for fiscal policy support to enhance growth [2][11] - The report recommends focusing on major projects in central and western regions, particularly in Xinjiang, Tibet, and Sichuan-Chongqing, where infrastructure investments are expected to recover [2][11] Industry Dynamics Tracking - The Shanghai Cooperation Organization summit proposed the establishment of a development bank to support regional infrastructure projects, which could benefit construction enterprises involved in the Belt and Road Initiative [14] - From January to July, 19,800 urban old community renovation projects were initiated, reflecting a strong progress in construction activities, which is expected to drive demand for related engineering and materials [15] Weekly Market Review - The construction decoration sector experienced a decline of 1.37% this week, while the Shanghai Composite Index and the Wind All A Index saw declines of 0.81% and 1.37%, respectively [20]

智通财经APP获悉，东吴证券发布研报称，8月建筑PMI较上月下降，基建投资端增速有所放缓，稳增 长政策仍有加力的潜在空间，继续关注财政政策的加力节奏。基建合作仍是中外合作的重要形式，海外 工程需求景气度有望保持，海外工程业务有望受益，近期建议关注俄乌局势进展及重建预期变化。部分 专业制造工程细分领域、节能降碳以及新能源相关的基建细分领域景气度较高，有相关转型布局的企业 有望受益。建议关注中国核建(601611.SH)、中国化学(601117.SH)、鸿路钢构(002541.SZ)、华阳国际 (002949.SZ)等。 东吴证券主要观点如下： (1)8月建筑业商务活动指数较上月下降了1.5pct，商务活动指数下降至收缩区间，建筑业施工有所放 缓，业务活动预期指数相对平稳，但新订单指数仍然低迷，结合上半年和7月数据来看，基建投资端增 速有所放缓，稳增长政策仍有加力的潜在空间，继续关注财政政策的加力节奏。 近期城市更新、重大基建投资项目进展的关注度持续提升，中央财政发力和资金支持的落地有望加快重 点工程实施进度和实物工作量形成，对城市更新推动和区域需求拉动值得关注，建议关注新疆、西藏、 川渝等中西部区域的重大项目进 ...

Investment Rating - The report maintains an "Overweight" rating for the construction decoration industry [1] Core Viewpoints - Significant attention is being given to major infrastructure projects, with recommendations for sectors such as water conservancy and cleanroom engineering, which are experiencing structural prosperity [1] - In the first four months of 2025, China's infrastructure investment increased by 5.8% year-on-year, with water management investment growing by 30.7%, water transport investment by 26.9%, and air transport investment by 13.9% [10][11] - The report highlights the potential for overseas engineering demand to remain robust, particularly in countries involved in the Belt and Road Initiative, with new contracts signed amounting to USD 64.54 billion, a year-on-year increase of 17.4% [11] - The report suggests focusing on companies with transformation layouts in high-demand sectors such as energy conservation, carbon reduction, and new energy-related infrastructure [11] Summary by Sections Industry Dynamics - The central government plans to support urban renewal actions in 20 cities, with a budget exceeding 20 billion yuan, which is expected to boost demand for related engineering and materials [13][14] - The Ministry of Housing and Urban-Rural Development will enhance supervision to implement new residential project standards, promoting the application of new construction technologies and materials [15] Market Performance - The construction decoration sector saw a weekly increase of 1.25%, outperforming the CSI 300 and Wind All A indices, which increased by 0.88% and 1.61%, respectively [18] - Notable stock performances include Zhongheng Design and Chongqing Construction, which saw significant weekly gains of 26.5% and 26.1%, respectively [19] Recommendations - The report recommends focusing on leading state-owned enterprises and local state-owned enterprises in the infrastructure sector, which are expected to see valuation recovery opportunities [10] - Specific stock recommendations include China Communications Construction, China Electric Power Construction, and China Railway [10]

Core Viewpoint - The company, originally established in 2008 as a leading cleanroom system integrator, is expanding its business from medical applications to laboratory integration and electronic cleanroom services, aiming to create a second growth curve and enhance its market position in the semiconductor ecosystem [1][2]. Group 1: Business Expansion and Market Position - The company has transitioned from focusing solely on medical cleanrooms to include laboratory integration and electronic cleanroom services, having served over 800 clients including public hospitals and industrial electronics firms [1]. - The company announced a name change from "Huakang Medical" to "Huakang Clean" in March 2025, and plans to issue 750 million yuan in convertible bonds to support new business initiatives [1]. - A joint venture named "Wuhan Guanggu Huafeng Operation Technology Co., Ltd." was established with partners to strengthen future growth in the cleanroom technology sector [1]. Group 2: Market Dynamics and Financial Performance - The medical purification system market in China is valued at approximately 31.27 billion yuan annually, with the company holding orders worth 2.753 billion yuan for 2024, indicating a robust order book [2]. - The company has achieved positive operating cash flow of 150 million yuan in 2024, indicating a balance between orders and cash flow, which supports sustainable growth in its core business [2]. - The electronic cleanroom sector, which accounted for 54% of the cleanroom industry in 2022, is expected to see continued demand growth, with the company entering this market through strategic partnerships and service capabilities [2]. Group 3: Revenue and Profit Forecast - Revenue projections for the company from 2025 to 2027 are estimated at 2.8 billion, 3.6 billion, and 4.8 billion yuan, representing year-on-year growth rates of 61%, 32%, and 33% respectively [3]. - The net profit attributable to the parent company is forecasted to be 170 million, 220 million, and 300 million yuan for the same period, with growth rates of 156%, 30%, and 35% respectively [3]. - The company is expected to maintain a solid growth trajectory based on its established experience in the medical cleanroom sector and its expansion into the semiconductor cleanroom market [3].

Investment Rating - The report gives a "Buy" rating for the company, Huakang Clean [5]. Core Views - Huakang Clean is a leading cleanroom system integrator in the medical sector, expanding into the electronic cleanroom market, which is experiencing high demand [3][5]. - The company has a solid order backlog in the medical sector, with a total order value of 2.753 billion yuan for 2024, indicating stable growth prospects [4][5]. - The electronic cleanroom segment is expected to become a significant growth driver, with the market for electronic cleanrooms projected to exceed 1 trillion yuan in 2022 [5][6]. Summary by Sections Company Overview - Established in 2008, Huakang Clean has evolved from a medical cleanroom service provider to include laboratory integration and electronic cleanroom services, serving over 800 clients [3][4]. - The company rebranded from "Huakang Medical" to "Huakang Clean" in March 2025 to better reflect its focus on clean technology [3]. Market Potential - The cleanroom market in China is projected to reach approximately 312.68 billion yuan annually, driven by the increasing demand for clean surgical rooms and system upgrades [4][48]. - The electronic cleanroom market, which accounted for 54% of the cleanroom industry in 2022, is expected to see continued growth due to rising semiconductor investments [5][56]. Financial Projections - Revenue forecasts for Huakang Clean are 2.755 billion yuan in 2025, 3.644 billion yuan in 2026, and 4.830 billion yuan in 2027, with expected growth rates of 61%, 32%, and 33% respectively [5][7]. - The net profit is projected to reach 171 million yuan in 2025, 222 million yuan in 2026, and 301 million yuan in 2027, reflecting growth rates of 156%, 30%, and 35% respectively [5][7]. Competitive Position - Huakang Clean holds a strong competitive position in the medical cleanroom sector, ranking among the top three in terms of bid amounts from 2017 to 2020 [48]. - The company has established a robust reputation and project experience, which enhances its ability to secure new contracts and expand its market share [71][79].