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中国银河证券:“一带一路”海外订单放量在即 重点推荐基建央国企和国际工程企业

China Galaxy Securities: “Belt and Road” overseas orders are about to be released, focusing on recommending infrastructure central state-owned enterprises and international engineering enterprises

Zhitong Finance ·  11/27/2023 11:21

Countries along the “Belt and Road” have broad infrastructure needs, and overseas orders are about to be released.

The Zhitong Finance app learned that China Galaxy Securities released a research report saying that according to statistics from the Ministry of Commerce, in January-September, in January-September, Chinese enterprises invested 164.71 billion yuan in non-financial direct investment in the “Belt and Road”, an increase of 27.7% over the previous year. However, this year marks the 10th anniversary of the introduction of the “Belt and Road” initiative, and the volume of overseas orders from central construction enterprises and international engineering companies has increased markedly. The bank expects that in the context of the “Belt and Road” initiative entering a stage of high-quality development, overseas business is expected to open up new growth space for construction companies in the future. We recommend China Railway Construction (601186.SH), China Construction (601668.SH), China Railway (), China Communications Construction (), China Power Construction (), etc. 601390.SH 601800.SH 601669.SH

Incident: According to Xinhua News Agency, on November 24, the Office of the Leading Group for Promoting the “Belt and Road” Construction Work issued “Unswervingly Promoting the High-Quality Development of the Belt and Road” and Deeper and More Practical Vision and Action — Jointly Building the “Belt and Road” Development Prospects for the Next Ten Years (hereinafter referred to as the “Prospects”), which researched and proposed vision ideas and practical actions for high-quality joint construction of the “Belt and Road” over the next ten years.

The main views of China Galaxy Securities are as follows:

The five major development goals of the “Belt and Road” for the next ten years.

The development goals proposed in the “Outlook” are to strive for the next ten years or so. All parties will move in the opposite direction towards the goals of equal cooperation, mutual benefit and mutual benefit, and push the joint construction of the “Belt and Road” into a new stage of high-quality development. Specifically, it includes five major goals, namely, making the Internet more smooth and efficient, practical cooperation in various fields reaching a new level, further enhancing the sense of attainment and happiness of the people of the country, the basic formation of a new economic system with a higher level of openness in China, and the basic formation of a new economic system with a higher level of openness, and the common concept of the destiny of mankind becoming more and more deeply entrenched in the hearts of the people.

Dual line layout between traditional infrastructure and emerging fields.

In the field of traditional infrastructure, the “Outlook” suggests that facility connectivity is a priority direction for joint construction of the “Belt and Road”. China will focus on promoting the construction of onshore (railways, airports, highways), offshore (ports), sky, and online Silk Roads through the construction of high-quality, sustainable, risk-resistant, affordable, inclusive and accessible infrastructure, and comprehensively raise the level of infrastructure connectivity between countries. In emerging fields, focus on green infrastructure and digital infrastructure. The “Outlook” points out that it is necessary to expand green development cooperation space around key areas such as green infrastructure, green ecology, green energy, and green transportation. It is necessary to actively promote the interconnection of digital infrastructure and accelerate cooperation in fields such as smart cities, the Internet of Things, and 5G.

Iconic projects go hand in hand with “small but beautiful” projects.

Coordinate the construction of a number of iconic projects. The “Outlook” points out that it is necessary to build projects under construction such as the China-Thailand Railway and the Hungarian Railway, build the China-Pakistan Economic Corridor with high quality, operate projects such as the Yawan High Speed Rail, the Yaghi Railway, and the Mongolian Railway, do a good job in preliminary research on the China-Jiwu Railway, and promote integration of investment, construction, and operation. Work with relevant co-building countries to steadily and orderly promote the construction and operation of ports such as Kyaukpyu Port, Gwadar Port, Colombo Port, Hambantota Port, and Piraeus Port, and actively promote the integrated development of “Silk Road Shipping” ports in shipping and trade. Steadily promote planning, construction, and operation cooperation in the field of civil aviation infrastructure, such as the new Gwadar International Airport in Pakistan and Angkor International Airport in Siem Reap in Cambodia, to help jointly build the high-quality development of the country's civil aviation infrastructure. Maintain stable operation of projects such as the China-Russia East Line gas pipeline, the China-Russia crude oil pipeline, the China-Central Asia gas pipeline, and the China-Myanmar pipeline. Accelerate the high-quality development of China-Europe trains, participate in the construction of an international transport corridor across the Caspian Sea, organize an international cooperation forum on China-Europe trains, and work with all parties to build a new logistics channel for mainland Asia and Europe supported by direct rail and road transportation. Expand and improve the influence of China-Lao railway brands, and promote the overall quality and efficiency of the construction of new land and sea corridors in the west. Continue to polish the “gold sign” of the “Small but Beautiful” project. “Prospects” points out that it is necessary to focus on key areas such as infrastructure construction and water resources that can be “seen and touched” by the people of the country and can easily enhance their sense of attainment and happiness, and be guided by grounding, gathering hearts, low cost, and sustainability, further promoting the joint construction of “Belt and Road” and “small but beautiful” projects, and focusing on building a number of new representative projects with demonstration effects.

Countries along the “Belt and Road” have broad infrastructure needs, and overseas orders are about to be released.

According to statistics from the Ministry of Commerce, from January to September 2023, Chinese enterprises will invest 164.71 billion yuan in non-financial direct investment in the “Belt and Road” to jointly build a country, an increase of 27.7% over the previous year. In terms of foreign-contracted projects, Chinese enterprises in the “Belt and Road” joint construction project contract amount was 818.77 billion yuan, an increase of 2.6% over the previous year; the completed turnover was 628.53 billion yuan, an increase of 10.1% over the previous year. In the next ten years, Africa, Asia, South America, Europe (Russia) and other regions have a lot of room for improvement in infrastructure construction standards. Overseas orders are about to be released, and the “Belt and Road” initiative is expected to continue to open up growth space for the construction industry.

It focuses on recommending infrastructure central state-owned enterprises and international engineering enterprises.

The main forces of the “Belt and Road” are construction state-owned enterprises, state-owned enterprises, and international engineering enterprises. This year marks the 10th anniversary of the introduction of the “Belt and Road” initiative. The volume of overseas orders from central construction enterprises and international engineering companies has increased markedly. 2023Q1-3, the amount of new overseas contracts signed by China Chemical increased by 405.48% year on year, the amount of new overseas contracts signed by Sinoma International increased by 169% year on year, and the amount of new overseas contracts signed by China Communications Construction, China Power Construction, and China Metallurgical increased by more than 30% year on year. On the other hand, the share of overseas orders has increased significantly. 2023Q1-3, China Jiaotong Construction, China Railway, China Chemical, China China Metallurgical, China Energy Construction, China Steel International, and Sinoma International have increased the amount of new overseas contracts compared to 2022. It is expected that in the context of the “Belt and Road” initiative entering a stage of high-quality development, future overseas business is expected to open up new growth space for construction companies.

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