Investment Rating - The report maintains a "Positive" investment rating for the construction and engineering industry [11]. Core Insights - The report highlights fluctuations in infrastructure investment growth and emphasizes the importance of subsequent funding implementation [2]. - Fixed investment growth is declining, with a drop in the PMI for both manufacturing and construction sectors [6][19]. - The construction sector is experiencing pressure on orders, with a notable decline in new orders and employment indices [6][39]. Summary by Sections Investment & Orders - In April, the manufacturing PMI fell below 50, and the construction PMI also decreased, with new orders and employment indices at 39.6% and 37.8% respectively. The construction PMI was 51.9%, down 4.4 percentage points year-on-year and 1.5 percentage points month-on-month [6][19]. - Fixed asset investment from January to April reached CNY 14.7 trillion, a year-on-year increase of 4.0%, with narrow infrastructure investment at CNY 4.9 trillion, up 5.8% year-on-year [22][23]. Physical Workload - Cement output has shown a year-on-year decline, while demand for cement in infrastructure remains relatively stable. From January to April, cement production decreased by 2.8% year-on-year [8][30]. Project Funding - The funding availability rate for construction projects is stable, with a slight improvement in housing construction. As of May 13, the funding availability rate was 59.1%, with non-housing projects at 60.65% and housing projects at 51.33% [9][30]. - The issuance of special bonds has accelerated, with a total of CNY 13.68 trillion issued year-to-date, which is CNY 5.12 trillion more than the previous year [9][30].

Investment Rating - The industry investment rating is "Positive" and maintained [10] Core Viewpoints - In April, narrow infrastructure investment was 1.7 trillion yuan, a year-on-year increase of 5.8%, with a month-on-month growth rate decrease of 0.1 percentage points. Broad infrastructure investment reached 2.2 trillion yuan, a year-on-year increase of 9.8%, with a month-on-month growth rate decrease of 0.9 percentage points [7][11] - The report indicates that railway investment has accelerated, while water conservancy investment increased by 6.1% year-on-year, and transportation investment increased by 4.1% year-on-year. However, the month-on-month growth rates for these sectors showed a decline [11][12] - Cumulative narrow infrastructure investment from January to April was 4.9 trillion yuan, a year-on-year increase of 5.8%, with stable month-on-month growth rates [11][12] Summary by Relevant Sections - **Narrow Infrastructure Investment**: In April, narrow infrastructure investment was 1.7 trillion yuan, with transportation, storage, and postal services accounting for 0.8 trillion yuan, and water conservancy, environment, and public facilities management also at 0.8 trillion yuan. Year-on-year increases were 4.1% and 6.1% respectively, but month-on-month growth rates decreased [7][11] - **Broad Infrastructure Investment**: Broad infrastructure investment in April was 2.2 trillion yuan, with a year-on-year increase of 9.8%. The electricity, heat, gas, and water production and supply sector saw a significant year-on-year increase of 24.5% [11][12] - **Physical Workload**: From January to April, cement production decreased by 2.8% year-on-year, while excavator sales increased by 17.6% year-on-year, indicating a potential acceleration in water conservancy projects [11][12]

Investment Rating - The report maintains an "Overweight" rating for the construction and building materials industry [6] Core Insights - The report highlights a recovery in building materials retail, with expectations for the impact of policy implementation to support demand in the construction sector [1][2] - Investment in infrastructure, real estate, and manufacturing has shown mixed results, with infrastructure investment continuing to rise while real estate and manufacturing investments have declined [1] - The report emphasizes the importance of recent monetary policy measures, including interest rate cuts and structural monetary policy tools, to stimulate domestic demand [1] Summary by Sections Real Estate and Construction - From January to April 2025, real estate sales and new construction starts saw a reduction in their year-on-year decline, with sales down by 2.8% and new starts down by 23.8% [2] - The report notes that the retail sales of construction and decoration materials reached 53 billion yuan, showing a year-on-year increase of 2.3% [2] Cement Industry - Cement production from January to April 2025 was 495 million tons, reflecting a year-on-year decrease of 2.8% [3] - The average cement price in April was 398 yuan per ton, which is a 9.6% increase year-on-year [3] - The report indicates that the average cement shipment rate was 48.3%, with a slight increase from the previous month [3] Glass Industry - The flat glass production from January to April 2025 was 319 million weight cases, down 4.8% year-on-year [4] - The average price of float glass in April was 71 yuan per weight case, showing a slight month-on-month increase [4] - The report notes an increase in inventory levels for photovoltaic glass, indicating a potential oversupply situation [4] Recommended Stocks - The report recommends several stocks in the construction and building materials sector, including: - Sichuan Road and Bridge (600039 CH) with a target price of 11.03 yuan - China National Materials (600970 CH) with a target price of 13.04 yuan - China National Chemical (601117 CH) with a target price of 9.03 yuan - Huaneng Water Cement (6655 HK) with a target price of 11.26 HKD [10][29]

Investment Rating - The industry investment rating is maintained at "Outperform the Market - B" [5] Core Insights - The issuance of special bonds remains high, and the industry fundamentals are expected to improve due to increased government financing and infrastructure investment [2][16] - The central government has issued guidelines to accelerate urban renewal actions, which will likely boost infrastructure investment and benefit construction companies focused on municipal projects [2][17] - The overall financial indicators for construction enterprises are anticipated to improve, driven by a more proactive fiscal policy and the acceleration of infrastructure funding [2][11] Summary by Sections Industry Dynamics - The central bank reported that as of April, the broad money (M2) balance was 325.17 trillion yuan (yoy +8%), and the narrow money (M1) balance was 109.14 trillion yuan (yoy +1.5%) [16] - The total social financing stock was 424.0 trillion yuan (yoy +8.7%), with a net financing of government bonds amounting to 4.85 trillion yuan (yoy +3.58 trillion yuan) [16] - The issuance of special bonds by local governments in the first four months totaled 20.48 billion yuan, 39.19 billion yuan, 36.34 billion yuan, and 23.01 billion yuan, with April's issuance up 161% year-on-year [16] Market Performance - The construction industry rose by 0.77% from May 12 to May 16, underperforming the CSI 300 index which increased by 1.12% [18] - The chemical engineering sector showed the highest growth at 3.36%, while municipal engineering also performed well [18] Key Focus Stocks - Recommended stocks include major state-owned construction enterprises such as China State Construction, China Communications Construction, China Railway Construction, and China Railway Group, which are currently undervalued [2][11][12] - The report highlights the potential for growth in companies involved in urban renewal and infrastructure projects, particularly those with strong financial health and market positioning [2][12] Company Announcements - Significant contracts were awarded, including a 7.88 billion yuan contract by China Nuclear Engineering and a 78.80 billion yuan contract by Shaanxi Construction [29] Industry Valuation - As of May 16, the construction and decoration industry had a price-to-earnings (P/E) ratio of 10.75 and a price-to-book (P/B) ratio of 0.77, indicating a slight increase from the previous week [24] - The report identifies the lowest P/E ratios among major construction companies, with China Railway Group at 5.29 and China State Construction at 5.09 [24][25]

Group 1: Event Overview - The "5·15-5·19 Investor Protection Publicity Week" event was held in Beijing, Shanghai, and Shenzhen, focusing on promoting investment knowledge and advocating rational, value, and long-term investment principles [1] - The event featured discussions with chief analysts, public lawyers, and representatives from listed companies to enhance investors' risk awareness and self-protection capabilities [1] Group 2: Company Profile and Strategy - China Railway Group Limited, managed by the State-owned Assets Supervision and Administration Commission, is a comprehensive construction industry group that went public in 2007 [2] - The company integrates traditional and new infrastructure, leveraging emerging technologies like artificial intelligence to enhance the entire construction industry chain [2] - China Railway is focusing on smart construction solutions and aims to expand investment in water conservancy, rural revitalization, ecological protection, and urban renewal during the 14th and 15th Five-Year Plans [2] Group 3: Resource Development and Market Position - The company is actively involved in the development of mineral resources, holding stakes in major copper-cobalt mines and significant molybdenum mines, contributing to national resource stability and enhancing corporate profitability [3] - China Railway plans to optimize its industrial structure and strengthen core technologies while continuing to support national strategic initiatives and public demand [3] Group 4: Market Value Management - China Railway has been implementing a market value management strategy since 2005, evolving from vague concepts to systematic approaches with clear metrics [4] - The company emphasizes investor relations and transparency, establishing long-term communication mechanisms with institutional investors and enhancing voluntary information disclosure [4][5] - In response to new market value management policies, China Railway has developed a management system and valuation enhancement plan, including share buybacks and shareholder increase plans for its subsidiaries [5]

丨证券研究报告丨 报告要点 [Table_Summary] 新华社日内瓦 5 月 12 日电，中美日内瓦经贸会谈发表联合声明。 分析师及联系人 [Table_Author] SAC：S0490520080022 SAC：S0490522060005 SFC：BUT917 行业研究丨点评报告丨建筑与工程 [Table_Title] 中美关税下调，重视鸿路钢构需求与盈利双击 张弛 张智杰 袁志芃 [Table_Title2] 中美关税下调，重视鸿路钢构需求与盈利双击 [Table_Summary2] 事件描述 请阅读最后评级说明和重要声明 %% %% %% %% research.95579.com 1 建筑与工程 cjzqdt11111 新华社日内瓦 5 月 12 日电，中美日内瓦经贸会谈发表联合声明。 事件评论 短期看，公司一季度迎来了吨盈利触底、产销量高增，经营拐点进一步确认。α层面，公 司通过积极经营调整，将多年积累的制造端优势转化成销售端的改善，厚积薄发正在兑 现，α逐步显现，公司经营已经出现拐点；β层面，随着中美日内瓦经贸会谈发表联合声 明，大幅降低关税水平，或有利于缓解出口压力，从而带动相关行业制造 ...

Investment Rating - The investment rating for the construction and engineering sector is "Positive" and maintained [7]. Core Insights - The China Securities Regulatory Commission (CSRC) released the "Action Plan for Promoting the High-Quality Development of Public Funds" on May 7, which emphasizes the importance of performance benchmarks and strict regulation of fund companies' selection of benchmarks [2][6]. - The Action Plan aims to optimize fund operation models and establish a mechanism that binds fund company income to investor returns, addressing market concerns about fund companies profiting while investors do not [10]. - The plan encourages the issuance of actively managed equity funds with performance-based management fees, aiming for at least 60% of the top fund management institutions to issue such funds within a year [10]. - The Action Plan also stresses the need for long-term performance assessments and incentives for fund managers, with a significant weight on performance metrics [10]. - The focus on performance benchmarks is expected to reduce the tendency of funds to concentrate on single sectors or styles, promoting a more stable investment approach [10]. - The construction sector, particularly stocks with significant weight in the CSI 300 index, is highlighted as a key area for investment, with major state-owned enterprises included [10]. - Recommended stocks for weight allocation include Sichuan Road & Bridge, China State Construction, and others that align with high dividend characteristics and stable growth expectations [10]. Summary by Sections - **Event Description**: The CSRC's release of the "Action Plan" on May 7 [6]. - **Event Commentary**: The Action Plan's implications for fund management and investment strategies in the construction sector [10].

证券研究报告 工业/基础材料 重点工程积极推进，关注淡季价格支撑 华泰研究 2025 年 5 月 11 日│中国内地 行业周报（第十九周） 本周观点：基建重点工程积极推进，关注建材淡季价格回落幅度 上周"一揽子金融政策支持稳市场稳预期"新闻发布会召开，公布实施降准 降息、公积金贷款和结构性货币政策工具利率下调、房地产融资制度改革等， 有望助力地产需求"止跌回稳"趋势。超长期特别国债和新型政策性金融工 具有望加快基建重点工程建设，今年 1-4 月全国铁路投资同比+5.3%，4 月 单月同比+5.7%，铁路、水利、核电等重点领域基建投资延续高景气。上周 公募基金改革方案发布，中长期有望提升低配的建筑建材龙头配置比例。我 们持续推荐估值尚处于低位的基建链及地产链龙头，短期重点推荐四川路 桥、中材国际、海南华铁、三联虹普、中国建筑国际、华新水泥、上峰水泥、 中材科技、兔宝宝、中国联塑。 上周细分行业回顾 截至 5.9，上周全国水泥价格周环比-1.2%；水泥出货率 48.1%，周环比/同 比-1.5%/-6.1pct；上周国内浮法玻璃均价 71 元/重量箱，周环比/同比 -0.3%/-21.3%，重点样本企业库存 58 ...

Investment Rating - The report maintains a "Positive" investment rating for the construction and engineering sector [13] Core Viewpoints - The report emphasizes the high dividend investment opportunities in the construction sector, particularly focusing on state-owned enterprises, local state-owned enterprises, international engineering firms, and quality private enterprises [2][8] Summary by Relevant Sections Central State-Owned Enterprises - The report highlights China State Construction as a top pick due to its complete qualifications and stable operations, benefiting from steady growth. The company plans to increase its dividend payout ratio from around 20% to over 24%, with a projected new contract amount of 1,414.9 billion yuan for 2024, representing a year-on-year growth of 21.1% [8][9] - Other notable mentions include China Communications Construction and China Railway Construction, with dividend yields of over 5% and 6% respectively [8] Local State-Owned Enterprises - Sichuan Road and Bridge is identified as a key player, with a projected dividend yield of around 6% for 2025. The company plans to repurchase shares worth 100-200 million yuan, reflecting confidence in future growth [8][9] - Other local state-owned enterprises with attractive valuations and high dividend yields include Anhui Construction and Tunnel Engineering [8] International Engineering - The report stresses the investment opportunities presented by the "Belt and Road" initiative, recommending companies like China Steel International and China National Materials, which have high overseas order growth and dividend yields around 5% [8][10] Quality Private Enterprises - Jianghe Group is highlighted for its robust fundamentals and high dividend payout ratio, with a projected payout exceeding 95% for 2024. The company has expanded its overseas business significantly, with new orders growing by 57% year-on-year [8][11]

Investment Rating - The investment rating for the construction and engineering sector is "Positive" and is maintained [10] Core Viewpoints - The report highlights the optimistic outlook for the construction sector following the release of a comprehensive financial policy aimed at stabilizing the market and expectations [8][10] - The People's Bank of China is expected to enhance macroeconomic control with a moderately loose monetary policy, which includes measures such as lowering the reserve requirement ratio and interest rates [14] - The report emphasizes the importance of stabilizing the real estate and stock markets, with significant support measures announced for both sectors [14] Summary by Sections Event Description - A press conference was held by the State Council on May 7, where officials discussed the "comprehensive financial policy to support market stability and expectations" [2][8] Event Commentary - The report discusses the key points from the press conference, including the expansion of the real estate financing coordination mechanism and the increase in loans approved for residential construction [14] - It also mentions the role of insurance funds in stabilizing the stock market and the introduction of specific measures to encourage long-term investments [14] Related Research - The report references other studies, including one on URI's revenue growth and another on the construction industry's performance in 2024 and Q1 2025 [12]