Introduction to this report:
Recommend real estate CSCEC, pro cyclical China Railway and China Chemical, infrastructure China Communications Construction and China Railway Construction, Low altitude Huashi Group, High dividend Tunnel Shares, Sinoma International and Northern International, Power China Energy Construction and Power China Construction, etc.
Summary:
The experts of the national symposium were involved in the reform of the power system, and the NDRC requested to strengthen the overall planning of project construction funds.
(1) On May 23, the President of the People's Republic of China held a symposium of enterprises and experts, emphasizing the further deepening of reform in an all-round way. The experts present at the symposium put forward suggestions on deepening the reform of power system/economic system. (2) On May 21, the press conference of the National Development and Reform Commission said that up to now, of the 15000 projects that have been launched, about 11000 have started construction, with an operating rate of more than 70%. In particular, the overall progress of post disaster recovery and reconstruction projects is relatively fast, and the project commencement rate in 8 provinces and cities, including North China, with Beijing Tianjin Hebei as the focus, has reached about 80%. (3) On May 23, according to Centennial Construction Network, the capacity utilization rate of 274 cement clinker production enterprises nationwide was 61.54%, 3.6 percentage points higher than last week.
One week after the release of the central bank's housing finance policy, many places followed up to cancel the lower limit of housing loan interest rate/reduce the down payment ratio.
(1) On May 20, the Ministry of Housing and Urban Rural Development issued the Notice on Reducing the Interest Rate of Individual Housing Loan of Housing Provident Fund to guide the Urban Housing Provident Fund Management Center to adjust the interest rate of individual housing loan of housing provident fund in a timely manner. (2) 517 A new policy for the property market was introduced, and more than 70 cities accelerated the implementation of the detailed rules of "trade in the old for the new", clearly encouraging or promoting state-owned enterprises to purchase second-hand houses from buyers. (3) On May 22, Guangzhou Real Estate Industry/Intermediary Association launched the proposal for the city wide housing "old for new" activity, and the first batch of 122 real estate projects and 12 real estate intermediaries in Guangzhou were launched. (4) On May 23, Vanke signed an agreement with China Merchants Bank and other leading financial institutions to obtain a syndicated loan of 20 billion yuan.
It is suggested that the real estate should increase its shareholding in development and sales/completion decoration/design/construction and other key links. (1) Comprehensive EPC of real estate development and construction recommends CSCEC (PB0.55 dividend yield 4.5%), China Railway (PB0.57 dividend yield 3.0%), China Railway Construction (PB0.47 dividend yield 3.2%), Anhui Construction Engineering (PB0.84 dividend yield 5.0%), and Shanghai Construction Engineering (PB0.70 dividend yield 2.1%). (2) The completion decoration recommended Jianghe Group (net profit increased by 37% in 2023/dividend yield of 3.4% 2024PE8.9), and the beneficiary target Jintanglang (net profit decreased by 20% in 2023/dividend yield of 2.8% PE8.5). (3) The design recommends Huayang International (net profit increase of 44% in 2023/dividend yield of 7.4% PE10.9). (4) Honglu steel structure is recommended for construction (net profit increased by 1%/PE10.4 in 2023).
The low altitude economic planning of various regions continued to be implemented, and Huashi Group's low altitude competitive advantage was significantly underestimated.
(1) On May 22, Guangdong issued the Action Plan of Guangdong Province to Promote the High Quality Development of Low altitude Economy (2024-2026), in which the scale of low altitude economy will exceed 300 billion yuan by 2026, accelerating the construction of general airports set out in the General Airport Layout Plan of Guangdong Province (2020-2035), and promoting parking garages, energy stations, weather stations Construction of ground support facilities such as fixed operation bases and air material support platforms. (2) Low altitude industrial chain 2024PE Rice Information 67 times/CITIC Haizhi 52 times/Wanfeng Aowei 33 times, 2024PE/market value of Shenzhen Chengjiao 62 times/11.1 billion, Sujiaoke 22 times/9.9 billion, Huashi Group 8 times/6.6 billion. (3) Other recommendations include China Railway and China Chemical/Special Bond Infrastructure China Communications Construction and China Railway Construction/High Dividend Tunnel Shares/Sinoma International and North International/New Energy China Energy Construction/China Power Construction, etc.
Risk tips: macroeconomic policy risks, lower than expected infrastructure investment, etc.
