Hot spots are spreading in the construction industry
Zhitong Finance APP was informed that China Merchants Securities issued a research report saying that, specifically, the steel industry has good price elasticity, and it is recommended to pay attention to Baosteel (600019.SH), Nangang (600282.SH), Shougang (000959.SZ) ), etc.; in terms of construction, the real estate-related sub-sectors whose valuations have fallen sharply before are expected to usher in a more-than-expected valuation repair with moderate easing, such as Gold Mantis (002081.SZ), Jangho Group (601886.SH), Yasha Shares (002375.SZ), etc. In addition, it focuses on recommending Mengcao Ecology and attaches importance to the valuation improvement brought by its seed industry technology. At the same time, he is optimistic about the investment opportunities in the BIPV industry chain, and individual stocks recommend Sente (603098.SH) and Jangho Group. To sum up, maintain the “recommended” rating of the above two industries.
The main views of China Merchants Securities are as follows:
This week, the hot spots in the construction industry have spread. Some road and bridge companies have increased significantly, and some garden companies have also experienced large increases due to the theme of environmental protection. Many companies have received regulatory letters from the exchange. This time, the construction sector market has improved fundamentally. After the rapid decline in demand in the third quarter of 2021, a large number of policies to boost demand have been introduced. Whether it is infrastructure or real estate, construction companies can benefit substantially; at the same time , There are very obvious investment behavior factors in the construction market. It has been mentioned many times before that when market valuations are highly differentiated, marginal changes in policies are expected to bring about market rebalancing. , steel and other sectors are expected to usher in a valuation increase.
1. Judging from the new credit situation in January, the increase in credit is mainly contributed by government bonds and short-term corporate loans (mainly bills). The policy focus may be more on “continuation”. The issuance and approval of special bonds, the project approval of the National Development and Reform Commission, and the precise drip irrigation to real estate companies can all be monitored in real time, and the strength of this underlying policy can be controlled.
2. Combined with the recent spread of hot spots in the construction sector and the huge growth of some companies, China Merchants Securities believes that the steel industry may be more worth looking forward to in the future, and it may now be in the second stage of stable growth. With the development of infrastructure and real estate policies, The start-up season after the Spring Festival is worth looking forward to; at the same time, it is expected that the annual economic and investment growth rate will increase quarter by quarter, and the annual profit per ton of steel is expected to exceed market expectations. The time window may still favor the steel, construction, etc. cycles on this side.
3. Investors are again advised to pay attention to investment opportunities in cyclical industries such as steel and construction. In the second stage of the market, steel may be the protagonist. In particular, it is recommended to pay attention to the sub-sectors of the real estate completion chain, such as decoration and architectural design. Most of the companies’ large-scale provision should be completed, and they are expected to go into battle lightly; looking into the future, the concentration of the real estate industry is expected to increase rapidly, and related sub-sectors The industry and company are also expected to break away from the extreme point of extremely poor fundamentals and enter a new round of stable growth. At the same time, it is recommended to continue to pay attention to the extension and expansion of central enterprises and state-owned enterprises in new fields (such as China Power Construction to clean energy). Their investment logic is different from the above-mentioned sub-sectors in the real estate chain, and they have their own long-term investment logic.