Tianfeng: The construction sector actively seizes the main trend of anti-overwork investment and values the investment opportunities of Sichuan Road & Bridge Group (600039.SH).

Tianfeng released a research report stating that the recent increase in attention to anti-concussion is on the rise. The investment opportunities in the construction sector against the anti-concussion can be grasped from four perspectives: 1) the perspective of "price elasticity", downstream profit improvement and capital expenditure perspective, financial statements improvement & "transformation and upgrading" perspective, and the perspective of new energy materials and related varieties of engineering. The project promotion investment work schedule will point out that it is necessary to focus on major projects in provinces and at the national level in the "Fourteenth Five-Year Plan", key projects in provinces, investment projects within the provincial budget, and local government special bond projects. With the accelerated promotion of key projects within the province, the fundamentals are expected to show an accelerated improvement trend in the second half of the year. The recent increase in the start-up rate of petroleum asphalt is significant. With the cooler weather in September, it is optimistic about the conversion of subsequent physical workloads. Tianfeng's main points are as follows: Increased attention to anti-concussion, focusing on investment opportunities in the construction sector Recently, the attention to anti-concussion has increased. The bank believes that investment opportunities against anti-concussion can be grasped from four perspectives: 1) the perspective of "price elasticity", focusing on benefiting from the rise in upstream bulk price varieties, paying attention to resources production and trade targets such as "construction + mining" and "construction + chemical industry", and also focusing on resource processing sectors such as Anhui Honglu Steel Construction (002541.SZ); 2) Downstream profit improvement and capital expenditure perspective, with the promotion of "anti-concussion", the self-discipline of the steel industry has significantly strengthened, and there has been a clear improvement in the supply side. Sinosteel Engineering & Technology's new domestic orders in the first half of 25H1 amounted to 2.44 billion, a year-on-year increase of +53.81%, and domestic orders have marginally recovered. Sinoma International Engineering's new domestic orders in the first half of 25H1 were down 2% year-on-year, with engineering technology and high-end equipment manufacturing businesses growing by 10% and 5% respectively. It recommends Sinosteel Engineering & Technology (000928.SZ) and Sinoma International Engineering (600970.SH) and suggests paying attention to China Aluminum International Engineering Corporation (601068.SH, 02068); 3) The perspective of financial statements improvement & "transformation and upgrading", construction companies with stronger technological attributes are expected to benefit from the structural high prosperity of technological infrastructure demand; 4) New energy materials and related varieties of engineering: the photovoltaic and other new energy fields are important industries in this round of anti-concussion. It is recommended to focus on new energy-related construction targets; 5) Supply and demand situation, focus on central SOEs and high-quality local SOEs. Introducing strategic investors to optimize the equity structure, the fundamentals are expected to accelerate improvement 1) On September 10, Sichuan Road & Bridge Group (600039.SH) announced that in order to introduce value investors who recognize the company's intrinsic value and are optimistic about its future development, and to optimize the company's equity structure, Shudao Group plans to reduce its shareholding by no more than 173,911,812 shares, i.e., not more than 2% of the total share capital of the company, through bulk trading; 2) In the first half of 25H1, Sichuan Road & Bridge Group added 218 new bid-winning projects, with a total amount of about 72 billion yuan, a year-on-year increase of 22.20%. Among them, the growth rate of infrastructure orders was as high as 25.88%. Due to the influences of land consolidation and approval of new projects, land requisition and demolition for projects, which affect the pre-work, new start-up projects have not been able to start on a large scale, and project continuity is insufficient, resulting in some pressure on the company's revenue in the first half of the year. On August 28, the project promotion investment work schedule was held in Chengdu, emphasizing that in the next four months of this year, the established targets should be anchored to reverse the work schedule, focus on major projects in provinces and at the national level in the "Fourteenth Five-Year Plan", key projects in provinces, investment projects within the provincial budget, and local government special bond projects, and try to push the work forward and advance the progress, making every effort to expedite the commencement of projects that have not yet started by the end of the year, accelerate the construction of projects with slow progress, and complete those projects that are overdue as soon as possible. The bank believes that with the accelerated promotion of key projects within the province, the fundamentals are expected to show an accelerated improvement trend in the second half of the year. The start-up rate of petroleum asphalt has rebounded significantly, and it is optimistic about the acceleration of the conversion of physical workloads From the perspective of physical workloads, the bank selects two important building materials indicators closely related to construction start-ups, cement shipment rate and petroleum asphalt start-up rate, to characterize the physical workloads of construction projects. This week (September 13), the cement shipment rate was 46.70%, up 0.97% month-on-month. This week (September 10), the petroleum asphalt plant start-up rate was 34.90%, up 6.80% month-on-month. The cement shipment rate increased slightly month-on-month, and the petroleum asphalt start-up rate increased significantly, entering September with cooler weather, and is optimistic about the conversion of subsequent physical workloads. Risk warning: Infrastructure & real estate investment exceeds expected downturn; progress of SOE and state-owned enterprise reforms falls short of expectations; tariff impacts exceed expectations.