Investment Rating - The investment rating for the construction and decoration industry is "Positive" (maintained) [4] Core Viewpoints - The industry is experiencing a structural differentiation in performance, with 16 companies reporting revenue growth and 12 companies reporting net profit growth in 2024, indicating a challenging environment due to the slowdown in infrastructure project implementation [7][10] - The domestic infrastructure sector is expected to gain momentum in 2025, driven by policy support and project launches, with significant projects like the Grand Canal in Jiangsu, Zhejiang, and Guangdong, and the Chengdu-Chongqing Economic Circle being highlighted [16] - The "Belt and Road" initiative is becoming increasingly important as external challenges rise, with trade with Belt and Road countries growing by 5.16% in 2024, indicating strong demand and cooperation potential [19][22] Summary by Sections Market Review - The construction and decoration index fell by 0.27% during the week, while the Shanghai Composite Index decreased by 0.28% [43] - Among the sub-sectors, steel structure, engineering consulting services, and municipal engineering showed positive growth, with increases of 3.32%, 0.67%, and 0.16% respectively [43] Company Performance - Major state-owned enterprises like China Railway, China Communications, and China Energy are expected to see stable order reserves and positive growth in new contract amounts for 2025, with targets of 20,147 million, 30,600 million, and 15,000 million respectively [14] - The international engineering and chemical engineering sectors are performing well, with companies like Donghua Technology and Northern International showing significant revenue and profit growth [10][11] External Challenges - The trade tensions with the U.S. have led to increased tariffs, significantly impacting China's exports, with the average tariff on Chinese goods reaching 21% during the Trump administration [19][22] - The "Belt and Road" initiative is seen as a strategic response to these challenges, with trade with Belt and Road countries accounting for 34.76% of China's total foreign trade in 2024, reflecting its growing importance [22][30] Infrastructure Investment - The report highlights the potential for infrastructure investment to rebound in 2025, with a focus on projects that have strong regional resource advantages and project execution capabilities [16] - Key enterprises to watch include major state-owned companies like China Construction, China Railway, and local state-owned enterprises such as Sichuan Road and Bridge and Anhui Construction [16]

证券研究报告 | 行业周报 gszqdatemark 2025 03 02 年 月 日 建筑装饰 新疆煤化工蓬勃起势，重视产业链龙头投资机会。新疆对外是"一带一路" 桥头堡，对内是西部大开发等重大战略核心区域，持续受各类政策资源倾 行业走势 -20% -10% 0% 10% 20% 30% 2024-03 2024-07 2024-10 2025-02 建筑装饰 沪深300 作者 分析师 何亚轩 执业证书编号：S0680518030004 邮箱：heyaxuan@gszq.com 分析师 程龙戈 执业证书编号：S0680518010003 邮箱：chenglongge@gszq.com 分析师 廖文强 持续推荐国际工程与新疆煤化工，关注下周两会增量政策 本周核心观点：当前我们持续推荐国际工程与新疆煤化工投资机会：1） 国际工程：本周美乌领导人会面虽有波折，但俄乌停战大趋势明确。乌克 兰战后重建需求巨大（未来十年资金需求预计 5240 亿美元），乌方也表 示需要中国帮助重建，我国国际工程龙头竞争优势突出，且在当地已有业 务布局，有望重点受益；另一方面"一带一路"战略在中美博弈加剧背景 下有望加力推进，今年可能召 ...

Investment Rating - Industry rating is "Outperform" (maintained rating) [5] Core Viewpoints - Increased focus on cyclical infrastructure and international engineering sectors, with significant improvement in funding sources such as special bonds. The physical volume of infrastructure is expected to accelerate, particularly after the Two Sessions, which may catalyze market performance in these sectors [1][14] - The construction industry is showing signs of recovery, with a construction PMI of 52.7%, indicating expansion. The physical workload in infrastructure is improving, supported by favorable weather and project commencement post-Spring Festival [14][20] - The report suggests a focus on three main investment themes: 1) Infrastructure + debt reduction + value enhancement; 2) Potential high elasticity in cyclical engineering; 3) Thematic investment opportunities in low-altitude economy, Belt and Road Initiative, and construction transformation [20][24] Summary by Sections Section 1: Current Market Conditions - As of February 27, 2025, the funding availability rate for 13,532 construction sites is 49.1%, showing a year-on-year increase. The construction activity index has risen, indicating a recovery in the construction sector [2][13] - The issuance of new special bonds has accelerated, with a total of 589.11 billion yuan issued, a year-on-year increase of over 180 billion yuan. Infrastructure remains the primary focus, accounting for over 50% of the funding allocation [2][14] Section 2: Market Performance - The construction index rose by 1.25% during the week of February 24-28, while the Shanghai and Shenzhen 300 index fell by 1.89%. Notable stock performances included HanJia Design (+32.74%) and Chengbang Co. (+22.71%) [3][17] Section 3: Investment Recommendations - The report emphasizes the importance of infrastructure investment driven by real demand in water conservancy, railways, and urban infrastructure, with expected growth rates of 7.0% and 2.0% for broad and narrow definitions of infrastructure, respectively [20][24] - Recommendations include focusing on companies benefiting from debt reduction policies and those with high exposure to cyclical engineering opportunities, such as Sichuan Road and Bridge, and China Communications Construction [20][24]

Investment Rating - Industry rating is "Outperform the Market" (maintained rating) [5] Core Viewpoints - Increased focus on cyclical infrastructure and international engineering sectors, with significant improvement in funding sources such as special bonds. The physical volume of infrastructure is expected to accelerate, particularly post the Two Sessions, which may drive market performance in these sectors [1][14] - The construction industry is showing signs of recovery, with a construction PMI of 52.7%, indicating expansion. The physical workload in infrastructure is improving, supported by favorable weather and project commencement [14][20] - The report suggests focusing on central state-owned enterprises in infrastructure and cyclical engineering products, as well as international engineering opportunities due to geopolitical developments [1][14] Summary by Sections Section 1: Current Market Conditions - As of February 27, 2025, the funding availability rate for 13,532 construction sites is 49.1%, showing a year-on-year increase. The construction PMI has risen by 3.4 percentage points from the previous month [2][14] - The issuance of new special bonds has reached 589.11 billion yuan, an increase of over 180 billion yuan compared to the same period last year, with infrastructure being the primary focus [2][13] Section 2: Market Performance - The construction index rose by 1.25% during the week of February 24-28, while the Shanghai and Shenzhen 300 index fell by 1.89%. Notable stock performances included HanJia Design (+32.74%) and Chengbang Co. (+22.71%) [3][17] Section 3: Investment Recommendations - Three main investment themes are highlighted: 1. Focus on infrastructure, debt reduction, and value enhancement opportunities [20] 2. Attention to cyclical engineering sectors with potential high elasticity [21] 3. Investment opportunities in low-altitude economy, Belt and Road Initiative, and construction transformation [24][25]