CITIC Construction Investment: High-quality infrastructure companies are expected to enjoy an increase in market popularity, balance sheet repair, and valuation improvement brought about by improved macroeconomic expectations.

According to the research report of China International Capital Corporation, the overall revenue of the construction industry in the first half of this year reached 3.9711 trillion yuan, a decrease of 5.9% year-on-year, with a growth rate 2.8 percentage points lower than the same period last year; the net profit attributable to the mother reached 91.1 billion yuan, a decrease of 6.9% year-on-year, with a narrowing decrease of 2.8 percentage points compared to the same period last year. The performance of construction enterprises is under pressure, but benefiting from debt-for-equity policies, cash flow and impairment have improved. The industry concentration continues to increase, with high growth in energy and overseas projects. Against the background of the industry's overall scale control and pursuit of high-quality development, high-quality infrastructure enterprises are expected to enjoy market heat increase, balance sheet repair, and valuation improvement brought by improved macro expectations, while some construction companies focusing on new quality productivity will achieve both performance and valuation growth.