Galaxy Securities: recommends four main themes to grasp investment opportunities in the construction industry during the "15th Five-Year Plan" period.

The research report of China Galaxy Securities indicates that urban development in our country is transitioning from a stage of large-scale incremental expansion to a stage where improving the quality and efficiency of existing urban stock is the main focus. It is expected that urban renewal efforts will be intensified and continue to progress during the "15th Five-Year Plan" period. A new round of global industrial transfer has begun, with Southeast Asia as the largest beneficiary region. The acceleration of industrialization will drive the continuous increase in infrastructure demand. AI and BIM are helping with the digital transformation of construction, and construction robots are promoting the industrialization process. Four main themes are recommended to capture investment opportunities in the construction industry during the "15th Five-Year Plan" period. Firstly, major projects support stable growth. Favorable policies are frequent, and urban renewal efforts are being strengthened. Secondly, recommendations include going global, high dividends, mergers and acquisitions, and market value management evaluation. Thirdly, good growth prospects are seen in low-altitude economy, robotics, and computing power projects. Fourthly, areas with good supply-demand patterns such as Xinjiang coal chemical industry, nuclear power projects, and clean room projects are recommended.