Infrastructure stocks generally rose in early trading. As of press release, China Railway (00390) rose 7.41% to HK$4.06; China Metallurgical (01618) rose 6% to HK$1.59; and China Railway Construction (01186) rose 2.73% to HK$4.9.
The Zhitong Finance App learned that infrastructure stocks generally rose in early trading. As of press release, China Railway (00390) rose 7.41% to HK$4.06; China Metallurgical (01618) rose 6% to HK$1.59; China Railway Construction (01186) rose 2.73% to HK$4.9; and China Communications Construction (01800) rose 1.51% to HK$4.04.
According to the news, Dongwu Securities pointed out that infrastructure investment in the narrow sense increased 6.3% year on year in January-February, maintaining a steady growth trend. Currently, public finance is moving forward, and the growth rate of infrastructure investment in quasi-fiscal instruments is expected to continue to be high. The previous government work report suggests that active fiscal policies should be moderately strengthened. Starting this year, it is planned to issue ultra-long-term special treasury bonds for several consecutive years, specifically for the implementation of major national strategies and safety capacity building in key areas. It is expected that the infrastructure investment side will still be resilient.
In addition, a number of construction central enterprises recently released their 2023 reports. Apart from China Railway Construction and China Metallurgical, which were affected by credit impairment charges and period fee ratios, the performance of other central construction companies was generally steady. Among them, the net profit of China Railway and China Communications Construction increased 7.07% and 23.61%, respectively, over the same period last year. In response, Dongwu Securities recommended focusing on continuing valuation repair opportunities for leading infrastructure central enterprises with historically low valuations and steady performance.