Construction industry into the production and construction season, orders are expected to accelerate the transformation to income. In September the construction industry business activity index was 61.1%, an increase of 3.1 PCT, the Statistics Bureau said on the September official manufacturing PMI, the construction industry into the production season, return to the high boom interval, accelerate the construction progress of enterprises.
In September the civil engineering construction industry business activity index rose to 61.2%, a substantial increase of 8.1 PCT, and the construction of new orders index and employment index was 56.9% and 56.4% respectively, higher than last month and 2.4 2.1pct, indicating that the construction industry needs to speed up the growth of enterprise employment rose by three in the fourth quarter, the performance of construction enterprises is expected to accelerate the release of. At present, the location of the recommended ecological landscape PPP, underestimate the value of the construction of the central enterprises and leading local state-owned enterprises plate.
Drop quasi release liquidity project loan approval is expected to accelerate, PPP plate valuation upgrade space once again open. The central bank in September 30th notice, for financial institutions to support the development of inclusive financial services, decided to unify on Small and micro businesses and farmers' commercial banks or incremental production balance reaches a certain percentage of the loan policy implementation of targeted RRR cuts. The directional drop quasi coverage and Pratt & Whitney large, the release of liquidity is expected to effectively accelerate the pace of loan approval, financing dependent strong PPP landscape companies are expected to benefit significantly. From the perspective of banks and other financial institutions, in this year's local government investment and financing platform loan contraction, compliance PPP project is expected to become an important infrastructure loans alternative investment.
Jiangxi and Guizhou national ecological civilization pilot area implementation program released, garden ecology PPP industry again welcome top-level planning significant positive. General Office of the CPC Central Committee and the general office of the State Council recently issued a national ecological civilization pilot area (Jiangxi, Guizhou) implementation plan, proposed to strive to build a beautiful Chinese "Jiangxi model" and "colorful Guizhou Provincial Park, the formation of a number of achievements in the reform can promote the basin ecological protection compensation, ecological restoration and protection of rivers and lakes, the development of green industry ecological poverty, natural resources property rights and other key areas, Jiangxi Guizhou high standard ecological construction layout and the follow-up is expected to comprehensively promote ecological garden PPP industry continued to bring rich orders. Profit growth trend this year leading companies PPP garden plate with an average of about 70% has been very clear, at the same time, the leading company has also recorded an average double orders growth is expected next year, the plate will also have more than 50% of the average profit growth. Throughout the industry, the majority of Companies in the plate are implementing holdings / equity incentive / ESOP phenomenon is extremely rare, fully display industry confidence. At present, the valuation of the main companies in the plate is about 25/17 times PE level in 2017/2018, and the valuation switching power will become stronger and stronger. The first long yuan construction (255 million yuan ESOP resolute completion of buying, cost 11.35 yuan / share, the issuance will be orders is expected to accelerate, the Oriental Garden (strong) according to the latest bulletin three companies ESOP are still about 800 million yuan to buy the unfinished, leading industry, high order income coverage, high growth performance (trend), HUD ecological current in 2018 only 14 times PE was still significantly lower than comparable with the industry company level of 17 times PE), the other also recommended south of the Five Ridges garden, Yueyang forestry paper, Li Peng shares, Misho ecology etc..
Central enterprises to benefit from the construction of PPP industry change and stable profitability, low valuations, local leading state-owned enterprises performance growth is high, with strong allocation value. Construction central enterprises in hand orders sufficient, even if part of the local financing platform project tightening affected, still have the ability to maintain the steady growth of 10-20% performance. In the early stage of the overall stagflation, the low valuation of the background, the follow-up is expected to benefit from the core area for the construction of Beijing Tianjin Hebei and overseas The Belt and Road relevant policies to promote, is still a good configuration direction, key recommendation of Gezhouba Dam, China building. Leading local construction state-owned enterprises benefited from PPP drive and obvious advantages of resources in the province this year, leading local state-owned enterprises show a high order growth rate, performance growth momentum is strong, while the 18 year valuation is only 10-12 times PE. The key recommendation has strong fundamentals of the Anhui water conservancy (PPP orders accelerated landing, supporting the implementation of employee stock ownership and performance of the release of sufficient power for 18 years, only 10 times PE), Shandong Luqiao (full of orders is expected to drive the rapid growth of profit this year, 18 years, 12 times PE), Sichuan Luqiao (1-8 month orders strong growth of 162%, cast iron the group's core infrastructure platform, 18 years is only 10 times PE).
