Core Viewpoint - A coalition of 33 construction companies has issued a "anti-involution" initiative to promote industry transformation and eliminate "involution-style" competition [1][3] Group 1: Industry Consensus and Goals - The initiative aims to build industry consensus, maintain fair competition, and foster a healthy industry ecosystem while firmly resisting "involution-style" competition [3] - It emphasizes accelerating transformation and upgrading through technological innovation, focusing on intrinsic and long-term value rather than blind expansion and excessive debt [3] Group 2: Current Industry Context - The construction industry is at a critical juncture, requiring companies to implement new development concepts, focus on core responsibilities, enhance product research and development, and improve cost control to strengthen core competitiveness [5] - The transformation and upgrading are seen as key measures to address "involution," promoting the conversion of technological achievements and empowering the industry towards high-end, intelligent, and green development [7] Group 3: Market Reactions and Industry Actions - Recent market trends show a surge in sectors like steel and photovoltaics, indicating a positive market sentiment in response to the "anti-involution" call [7] - Industries such as photovoltaics, cement, and steel have initiated production cuts, with leading photovoltaic glass companies collectively reducing output by 30% since July to alleviate "involution-style" competition [9] - The cement industry has also released guidelines to optimize structural adjustments, while some steel mills have received notifications for production limits [9] Group 4: Historical Context and Effectiveness - The current "anti-involution" measures in the steel and cement industries are not new, as previous initiatives have been taken to control production and reduce inventory [11] - The cement industry has shown signs of recovery, with improved prices and profitability, indicating that the "anti-involution" efforts are beginning to yield results [11][12] Group 5: Understanding "Involution" in Economics - "Involution" in the economic context refers to internal competition leading to resource wastage and thin profit margins, often resulting in a vicious cycle of increasing effort with diminishing returns [12] - "Anti-involution" strategies focus on industrial upgrading and innovation, shifting from price competition to competition based on technology, quality, and service [12]

33家建筑类企业联合发出建筑行业"反内卷"倡议书，共同推动行业转型，摒弃"内卷式"竞争。《倡议 书》旨在凝聚行业共识，维护公平竞争，推动形成良好行业生态，坚决抵制"内卷式"竞争。同时提出以 科技创新加快转型升级，追求内在价值、长期价值，不拼凑规模、盲目扩张、过度负债，不设"空壳架 构"虚耗资源，共同维护市场秩序。(央视新闻) ...

Supply and Demand - Industrial production is slowing down, with some chemical and automotive sectors experiencing a decline in operating rates[2] - Construction activity has decreased, with cement dispatch rates and oil asphalt plant operating rates falling to historical lows[2] - Building demand is weak, with apparent demand for rebar, wire rods, and construction materials lower than historical levels[3] Prices - Geopolitical tensions have eased, leading to a decline in oil and gold prices, while copper and aluminum prices continue to rise[4] - Domestic industrial products are experiencing strong fluctuations, with the Nanhua Comprehensive Index showing a rebound[4] Real Estate - New housing transactions in first-tier cities have seen an expanded year-on-year decline, with a drop of 19% compared to 2023 and 17% compared to 2024[5] - Second-hand housing transaction volumes have weakened, with Beijing, Shanghai, and Shenzhen showing year-on-year declines of 9%, 19%, and a slight increase of 5% respectively compared to 2024[5] Exports - June exports are expected to show a year-on-year increase of around 2%, with early July exports projected to rise by approximately 3%[6] Liquidity - Recent weeks have seen a rise in funding rates, with R007 at 1.49% and DR007 at 1.42% as of July 4[5] - The central bank has implemented a net withdrawal of 14,808 billion yuan in monetary policy[5]

Group 1: Urban Renewal and Construction - The Ministry of Housing and Urban-Rural Development reports that several regions, including Hebei, Shanghai, Zhejiang, and Hubei, have exceeded a 50% commencement rate for urban old community renovations this year [1] - As of June, special long-term bonds have funded the upgrade of 41,000 old residential elevators, benefiting 1.7 million residents [1] - A total of 18 billion yuan has been allocated for the renovation of 120,000 old elevators by 2025, indicating strong government support for infrastructure projects [1] Group 2: High-End Residential Market - A report from CRIC indicates that the transaction volume of high-end residential properties priced over 10 million yuan in 30 key cities has increased by 18.76% year-on-year [2] - The demand for premium properties remains robust, with nearly all price segments for high-end residential properties seeing an increase in transaction volume compared to the same period in 2024 [2] - The decline in transactions for properties priced between 30 million and 50 million yuan is attributed to a decrease in supply, with a nearly 30% year-on-year drop [2] Group 3: Real Estate Financing and Development - Wuhan aims to secure over 50 billion yuan in credit for "white list" projects this year, with a focus on increasing the supply of new housing [3] - The city has reported a 30.6% year-on-year increase in new housing contract area and a 10.8% increase in second-hand housing contract area [3] - The plan includes launching 100 new real estate projects, which will enhance market supply and contribute to the stability and high-quality development of the real estate market [3] Group 4: Land Acquisition and Market Activity - China Overseas Land & Investment won a residential land parcel in Shenzhen with a premium rate of 40.74%, indicating strong competition among developers [4] - The land was sold for 2.37 billion yuan, with a floor price of approximately 38,800 yuan per square meter, reflecting the attractiveness of quality land parcels [4] - The competitive bidding process highlights the vitality of the Shenzhen land market and the ongoing demand for improved residential areas [4] Group 5: Corporate Financial Issues - Wanda Commercial Management Group has had 200 million yuan in equity frozen by the Nanjing Intermediate People's Court due to judicial enforcement [5] - The frozen equity is linked to investments in Kunshan and Nanning Wanda Plaza, which may restrict the company's financial flexibility [5] - This situation could impact Wanda's commercial expansion and project execution pace, raising concerns about stability in the commercial real estate sector [5]

Group 1: Economic Trends - Service consumption shows an upward trend with domestic flight executions increasing to 14,300 flights in the first five days of July, up 4% year-on-year compared to 12,800 flights in June, which was up 0.8% year-on-year [1][10] - Land premium rates have rebounded from low levels, reaching 7.8% in the week of June 29, with a three-week average of 4.3%, compared to 4.93% in May [1][11] - Prices in coal and real estate infrastructure sectors have risen due to "anti-involution" trends, with prices for Shanxi-produced thermal coal increasing by 0.5%, rebar prices in Shanghai up by 2.9%, and iron ore price index rising by 2% [1][32] Group 2: Downward Economic Indicators - The Huachuang Macro WEI index remains at a high level at 6% as of June 29, down 1.63 points from 7.63% on June 22, indicating a general decline in indicators such as commodity housing transaction area and coal throughput [2][7] - Real estate sales have seen a significant decline, with a 30% year-on-year drop in housing transaction area in 67 cities in the first four days of July, compared to a 17.6% decline in June [2][10] - Foreign trade shows a decline, with container throughput at domestic ports dropping to a 3.1% year-on-year decrease as of June 29, down from 4.3% the previous week [2][18] Group 3: Debt and Interest Rates - The issuance of new special bonds has surpassed half of the annual target, with 2.2 trillion yuan issued by June 30, representing a 50.5% progress compared to 38.5% in the same period last year [3][38] - Interest rates have decreased post-half-year, with DR001 at 1.3140%, DR007 at 1.4222%, and R007 at 1.4881%, showing declines of -5.43bps, -27.46bps, and -43.2bps respectively from June 27 [3][46] Group 4: Production and Consumption - The construction sector shows fluctuations in asphalt and cement dispatch rates, with asphalt plant operating rates at 31.7%, up 6.5% year-on-year, while cement dispatch rates are at 40.8%, slightly down from the previous week [14][17] - Industrial production indicators such as coal throughput at Qinhuangdao port have shown a year-on-year increase of 8.3% in early July, maintaining stability compared to June [14][18] Group 5: Price Movements - Domestic commodity price indices have shown mixed trends, with the BPI down by 0.5% while the RJ/CRB commodity price index increased by 0.6% [31][37] - Prices for major commodities like copper, gold, and oil have risen, with COMEX gold at $3,332.5 per ounce, up 1.9%, and Brent crude oil at $68.3 per barrel, up 0.8% [31][37]

Group 1: Company Overview - Jianpeng Holdings Limited has been providing a wide range of construction services since its establishment in Macau in 2006, focusing on both private and public sector projects [2][3] - The company's services include foundation-related works, landscaping, renovation and extension, road works, plumbing, electrical and mechanical engineering, and other supporting construction works [2][3] - Jianpeng has received multiple international standard certifications, including ISO9001:2015, ISO14001:2015, and OHSAS18001:2007, demonstrating its commitment to quality, environmental protection, and safety management [3] Group 2: Financial Performance - As of December 31, 2024, Jianpeng Holdings reported total revenue of 606 million yuan, representing a year-on-year growth of 15.83% [1] - The company recorded a net loss attributable to shareholders of 15.8766 million yuan, but this reflects a year-on-year improvement of 48.16% [1] - The gross profit margin stood at 1.04%, with a debt-to-asset ratio of 63.71% [1] Group 3: Market Position and Valuation - Jianpeng Holdings has a price-to-earnings (P/E) ratio of -3.4, ranking 167th in the construction industry, where the average P/E ratio is 8.55 [2] - The stock has experienced a cumulative increase of 32.5% over the past month, despite a year-to-date decline of 89.07%, underperforming the Hang Seng Index by 19.22% [1]

Core Viewpoint - The China Securities Hong Kong 300 Infrastructure Index (H300 Infrastructure) has shown mixed performance, with a slight decline over the past month but an overall increase year-to-date [1]. Group 1: Index Performance - The H300 Infrastructure Index closed at 1863.49 points, down 0.58% over the past month, up 3.05% over the past three months, and up 7.33% year-to-date [1]. - The index is designed to reflect the overall performance of listed companies in various sectors such as banking, transportation, resources, infrastructure, logistics, and leisure, selected from the China Securities Hong Kong 300 Index [1]. Group 2: Index Holdings - The top ten holdings of the H300 Infrastructure Index include China Mobile (34.05%), CLP Holdings (8.58%), CK Hutchison Holdings (8.35%), China Telecom (4.94%), Power Assets Holdings (4.92%), Hong Kong and China Gas (4.8%), China Unicom (3.68%), Towngas China (3.27%), Cheung Kong Infrastructure Holdings (2.57%), and China Resources Power (2.55%) [1]. - The index is fully composed of stocks listed on the Hong Kong Stock Exchange, with telecommunications services accounting for 52.65% and public utilities for 42.03% of the holdings [2]. Group 3: Index Adjustment Mechanism - The index samples are adjusted semi-annually, with adjustments occurring on the next trading day after the second Friday of June and December each year [2]. - Weight factors are generally fixed until the next scheduled adjustment, with special circumstances allowing for temporary adjustments [2].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The scarcity of orbital spectrum drives competition, and the construction of domestic low - orbit constellations has entered an accelerated phase. With limited low - orbit space and spectrum resources and strict deployment time requirements from the ITU, competition for resource locking is intensifying. China is expected to see an accelerated launch of low - orbit satellites from 2025 - 2030. Representative constellations include "Guowang", "Qianfan", and "Honghu - 3". Shanghai Harbor, with its satellite energy system products, is expected to benefit from the accelerated development of low - orbit satellites [5]. - Leading waterproofing companies such as Yuhong, Beixin, and Keshu have raised prices on both civil construction and engineering products. In the context of the industry's "anti - involution", the collective price increase by leading enterprises may promote price recovery, but the degree of price repair remains to be seen due to weak demand [5]. - Investment suggestions include paying attention to companies like Honglu Steel Structure, China Jushi, Punan Co., Ltd., Hainan Huatie, Beixin Building Materials, China National Chemical Engineering, China State Construction, Shanghai Harbor, Sinoma Science & Technology, and Keda Manufacturing [5]. 3. Summary According to the Table of Contents 3.1 Week - Specific Topic: Orbital Spectrum Scarcity Drives Competition, and Domestic Low - Orbit Constellation Construction Enters an Accelerated Phase - **Satellite Orbit Types**: Communication satellite orbits are mainly divided into GEO, MEO, and LEO. LEO can reduce power attenuation and communication delay, simplify terminal design, and is suitable for multi - satellite networking. Compared with GEO, LEO/MEO has smaller delay, and satellites are smaller and lighter, facilitating multi - satellite launches and reducing constellation construction costs and cycles [5][7]. - **Resource Scarcity and Competition**: Low - orbit space and frequency spectrum resources are scarce. The total capacity of low - orbit satellites is about 60,000, and Starlink plans to send 42,000 satellites into low - orbit by 2027, accounting for about 70%. The L, S, C frequency bands are almost exhausted, and the Ku, Ka bands are difficult to coordinate. According to ITU rules, operators need to complete satellite deployment within a specified time to lock resources, intensifying competition [5][11]. - **Policy Support**: Since 2014, China has successively introduced policies to encourage private capital to participate in commercial space activities. In 2023, commercial space was included in strategic emerging industries, and it has been mentioned in the government work reports of 2024 and 2025, indicating strong policy support [16]. - **Global and Domestic Constellation Construction Status**: Globally, SpaceX leads in low - orbit constellation construction, with other countries' enterprises following. In China, constellations like "Guowang", "Qianfan", and "Honghu - 3" have formulated phased launch plans. Although the number of launches in 2024 did not meet expectations, the launch rhythm is expected to accelerate from the second half of 2025 [5][17][23]. 3.2 Profit Forecast and Valuation of Main Covered Companies The report provides profit forecasts, valuations, and investment ratings for multiple companies, including Hainan Huatie, Punan Co., Ltd., China Jushi, etc. EPS, P/E, P/B, and other indicators for 2024 - 2027 are presented, and most investment ratings are maintained [33]. 3.3 Weekly Market Review - **Industry Index Performance**: In the week from June 28th to July 4th, 2025, the building and building materials industries showed certain fluctuations. Among building sub - sectors, the garden engineering index had the highest increase at 2.20%, while among various industries, the steel index had a relatively large decline [38][40]. - **Infrastructure Public REITs Performance**: The report lists the closing prices, 52 - week highs and lows, weekly, monthly, year - to - date, 250 - day, and IPO - since price changes of multiple infrastructure public REITs. The average weekly increase was 1.07%, the average monthly increase was 1.31%, and the average year - to - date increase was 20.99% [46][47]. 3.4 Aggregate Data Tracking - **Real Estate Data**: The report presents data on real estate new construction, construction, completion, sales area cumulative year - on - year growth, land transaction area, and real estate transaction data from 2022 - 2025 [49][58][68]. - **Social Financing Data**: Data on monthly new social financing, new RMB loans, new corporate bond financing, etc., from 2022 - 2025 are provided [78]. - **Infrastructure Investment Data**: The cumulative year - on - year growth rates of narrow - sense and broad - sense infrastructure investment, as well as investment in power, transportation, and water conservancy industries from 2022 - 2025, are shown. The new contract signing data of eight major construction central enterprises from 2022Q1 - 2025Q1 are also presented [88][94]. - **Special Bond Issuance Data**: Data on monthly and cumulative new and replacement special bond issuance from 2022 - 2025 are provided [96]. 3.5 High - Frequency Data Tracking - **Cement Data**: Information on national PO42.5 cement average price, East China regional cement price, cement - coal price difference index, cement capacity utilization rate, and cement production monthly year - on - year growth rate is presented [107][114]. - **Float Glass Data**: Data on glass spot price, futures price, inventory, and daily melting volume are provided [115][117][119][122]. - **Photovoltaic Glass Data**: Information on soda ash price, 2mm photovoltaic glass price, inventory, and daily melting volume is presented [122][123][125]. - **Glass Fiber Data**: Prices of SMC roving, winding direct roving, injection roving, G75 electronic yarn, and glass fiber inventory are shown [128][129][132][134][138]. - **Carbon Fiber Data**: Data on carbon fiber average price, raw silk price, inventory, production, capacity utilization rate, gross profit margin, cost, and gross profit are provided [135][139][142][146][148][151][152]. - **Magnesia and Alumina Price Data**: Prices of large - crystal fused magnesia and alumina are presented [153][156]. - **Upstream Raw Material Price Data**: Prices of asphalt, waste paper, PVC, and HDPE are shown [159][160][162][163]. - **Physical Workload Data**: Prices of titanium dioxide and acrylic acid, high - machine rental rate, excavator working hours, and asphalt average capacity utilization rate are presented [167][168][170][173].

Core Insights - The construction industry is officially entering a platform period, with infrastructure investment maintaining resilience but showing signs of decline in revenue among major state-owned enterprises [5][28][30] - The overall investment tone for infrastructure in the second half of 2025 will focus on stability, supported by proactive fiscal policies and accelerated government bond issuance [2][37] - Structural opportunities are emerging, particularly in manufacturing, power, water conservancy, and water transport sectors, driven by special government bonds [5][6] Industry Overview - The construction industry has seen a decline in total revenue for the first time in 2024, confirming a turning point for the industry [30] - The total revenue for the construction industry in 2024 was 86,962.78 billion, a decrease of 4.29% year-on-year, with net profit dropping by 13.74% [30][32] - The share of real estate in GDP has been declining since its peak in 2021, while infrastructure investment has been rising but not enough to offset the decline in real estate [26][28] Investment Strategy - Long-term investment should focus on manufacturing-oriented companies like Honglu Steel Structure, while short-term strategies should prioritize high-dividend stocks and significant changes in individual companies [6][7] - The report emphasizes the importance of structural opportunities in the construction sector, particularly in areas aligned with national strategic initiatives and safety capabilities [60] State-Owned Enterprises - There is a growing divergence among state-owned construction enterprises, with only a few, such as China State Construction and China Energy Engineering, showing positive growth in Q1 2024 [7][28] - The report recommends focusing on companies with strong dividend stability and growth potential, such as China Chemical Engineering and China Communications Construction [7][8] Professional Engineering and International Opportunities - The international engineering sector is expected to benefit from ongoing orders and the deepening of cooperation along the Belt and Road Initiative [8] - Companies like China National Materials and China Steel International are highlighted for their low valuations and high dividend yields, indicating strong performance potential [8] Mergers and Acquisitions - The construction industry is moving towards maturity, necessitating mergers and acquisitions to find new growth points [10] - The report anticipates that future mergers will primarily come from smaller, weaker segments of the industry, such as design and decoration [10]

Market Overview - The average daily trading volume for the entire A-share market was 1.44 trillion CNY, a slight decrease of approximately 50 billion CNY compared to the previous week[8] - The Shanghai Composite Index rose by 1.40% during the week, with a year-to-date increase of 26.3%[12] Market Style Performance - Large-cap value stocks outperformed with a weekly gain of 1.94%, while small-cap growth stocks lagged with a gain of only 1.14%[12] - The relative performance of small-cap stocks remained positive, indicating a sustained advantage over large-cap stocks[15] Participant Performance - The "National Team" index showed the best performance with a weekly increase of 1.97% and a year-to-date increase of 16.32%[23] - The private equity heavy index increased by 1.22% this week, reflecting a year-to-date gain of 54.71%[23] Market Sentiment - The total number of stocks that rose during the week was 4,054, with 94 stocks hitting the daily limit up, while 7 stocks hit the limit down[25] - The margin trading balance increased to nearly 1.86 trillion CNY, indicating a rise in market participation[29] Sector Trends - Strong sectors included steel, building materials, and photovoltaic, driven by government policies promoting a unified national market[39] - The innovation drug sector received a boost from new measures supporting high-quality development[39] Future Events - Key upcoming events include the Samsung Unpacked product launch on July 9 and the 2025 China Automotive Forum from July 10-12[44] Strategic Focus - The report emphasizes three strategic focuses for 2025: promoting domestic circulation, achieving technological self-reliance, and expanding openness[45] - Specific areas of interest include consumer electronics, industrial automation, and AI applications[45] Risk Factors - Potential risks include slower-than-expected economic recovery, uncertainties in overseas interest rate cuts, and geopolitical tensions[48]