The Zhitong Finance App learned that infrastructure stocks were strong in early trading. As of press release, CRRC (01766) rose 10.59% to HK$4.49; China Railway (00390) rose 6.11% to HK$4.17; China Communications Construction (01800) rose 6.08% to HK$4.19; and China Railway Construction (01186) rose 4.78% to HK$5.04.
SDIC Securities pointed out that the State Council issued a new “National Nine Rules”, and proposed formulating market value management guidelines and dividend requirements for listed companies. Combined with the previous comprehensive promotion policy for market value management of central enterprises, it is expected that subsequent central enterprise assessment plans will gradually be implemented. Combined with increased supervision and management of cash dividends, they are optimistic about future increases in internal value and market returns of central construction enterprises, and undervalued construction central enterprises are expected to fully benefit.
Societe Generale Securities said that financial data for March showed that the country's support for infrastructure is still high. The bank believes that since capital for incremental infrastructure is mainly from the country, and it is more inclined towards key projects; investment pressure is gradually decreasing, the cash flow of construction central enterprises will gradually improve in the future, and the dividend rate is expected to gradually increase, thus driving valuation repair.