The growth rate of central enterprises in the infrastructure and housing construction sectors slowed down in the third quarter, the chemical performance continued to be sluggish, and international projects were at a low performance point. Large central construction enterprises in the fields of infrastructure and housing construction performed relatively well. China Construction, China Railway and China Communications Construction all achieved positive growth in net profit due to the adverse impact of the macro environment, with China Construction and China Railway achieving double-digit steady growth. Most central enterprises' overseas orders and revenues grew rapidly. However, it is worth noting that the growth rate of large central enterprises slowed down in the first three quarters compared with that in the first half of the year, which also reflects the downward pressure of the macro economy. The performance of the chemical industry continued to deteriorate, and the decline in the performance of some companies expanded. Subsectors such as cement and light industry are also relatively dull, with few bright spots. The performance of the international engineering sector in the first three quarters decreased by 65,438+09% year-on-year, which was mainly affected by the performance of China Engineering Corporation. It is expected that the annual performance of this sector will improve under the impetus of the appreciation of the US dollar.

In the third quarter, the growth rate of the performance of the building intelligent plate was obviously accelerated, and the steel structure and design continued to slow down. The performance of intelligent building sector in the first three quarters increased by 24.6% year-on-year, which was significantly higher than the growth rate of 4% in the medium term. In addition to the negative growth of intelligence, Dashi Intelligent/Yanhua Intelligent/Handing shares increased by 32%/28%/5 1% respectively. The income end of steel structure continues to slow down in the medium term. The revenue and performance growth rate of the design sector also declined compared with the semi-annual report. The performance of Su Jiaoke still maintained a growth rate of 25%. Zhongheng Design and Design Co., Ltd. both experienced negative growth in performance, with a year-on-year growth rate of around -9%.

Investment strategy: In the context of the continuous slowdown of the overall growth rate of the construction industry, Lingnan Garden (abundant orders, transforming cultural tourism), Hong Tao Co., Ltd. (precision vocational education, building an integrator of vocational education in China), He Jiang Chuangchuang (acquisition of vision, establishment of an industrial fund with strong execution of transforming medical care), Dongyi Risheng (low performance, cooperation with Tmall to develop internet home improvement) and Dashi Intelligent (continuous growth in performance) are mainly recommended. Steady growth and the main line of PPP are optimistic about Weihai (a good opportunity to release performance risks), Sujiao Branch and Long Yuan Construction (a PPP leader). The main line of the Belt and Road Initiative is optimistic about Guanzhong A, Baoying, Zhonggong International and Northern International.