The tide of the times, the direction of the economy! The infrastructure industry is about to usher in a period of opportunity

According to a report from Securities Daily on the 5th, as local legislative sessions have been held recently, many regions have set their targets for the growth rate of fixed asset investment in 2023 in their government reports. Cities such as Wuhu in Anhui, Jinan in Shandong, Changde in Hunan, and Zhongwei in Ningxia have proposed a range of 6.5% to 15% for the growth of fixed asset investment and have formulated plans for key project investments. Experts predict that infrastructure investment will maintain a high double-digit growth in the first quarter of 2023. The increase in investment in infrastructure construction signifies that the infrastructure industry will be a key driving force in achieving the GDP growth target for 2023, and the industry is about to enter a period of opportunity.

Investment Plans for Major Projects in Mainland China in 2023 (in billions of RMB)

Current Situation of Infrastructure Development in Mainland China: Insufficient Urban Development and Urgent Need for Upgrading Traditional Infrastructure.

First, urban development in Mainland China is insufficient, and there is significant room for growth in the infrastructure market.

In terms of overall quantity, China's infrastructure market still has significant room for growth. In traditional infrastructure, the current per capita level of basic facilities in China is only equivalent to 30% of developed countries.

Secondly, there are significant deficiencies in China's traditional infrastructure network, which urgently requires renovation and upgrading.

China's economy has entered a stage of high-quality development. However, the current traditional infrastructure networks in areas such as transportation, logistics, energy, water conservancy, and urban utilities still have numerous deficiencies and shortcomings. There are imbalances in infrastructure supply between regions, urban and rural areas, and different stages of construction, management, maintenance, and operation. Insufficient supply remains an issue. Therefore, it is necessary to accelerate construction and undertake renovation and upgrades to address these challenges.

Domestic Infrastructure Development

With increased investment from the government, the infrastructure sector in China is entering a period of opportunity.

On December 16, 2022, the Central Economic Work Conference was held in Beijing. The government remains steadfast in its commitment to ensuring stable economic growth in the coming year, and infrastructure investment will continue to be an important driver of growth in the first half of 2023, with a high level of prosperity expected to be sustained. From January to June 2022, infrastructure construction investment increased by 7.10% year-on-year, which was 0.4 percentage points higher than the growth rate from January to May, indicating an accelerated growth rate. Against the backdrop of the government's continued efforts to stabilize growth, infrastructure investment is being pushed forward at an accelerated pace.

In addition, many regions are continuing to optimize their real estate policies, and with the continuous stream of favorable policies, the implementation of the "guaranteeing delivery of finished units" policy may be expedited. With the strengthening of policies, the real estate industry's post-cycle industrial chain, driven by property development and completion, is expected to see a return of funds. The pressure on accounts receivable collection is easing, leading to restored confidence in the infrastructure market. Various regions are increasing their efforts to develop the infrastructure industry, and a large number of infrastructure projects are being implemented, indicating a continuous increase in the growth rate of infrastructure investment in the future.

Infrastructure investment is now the opportune time.

Infrastructure construction relies heavily on traditional building materials. Traditional building materials include wood, bamboo, stone, cement, concrete, metal, bricks, ceramics, glass, engineering plastics, composite materials, and more. Among them, concrete and cement products account for 20% of the building materials. According to statistics, in 2021, the main business revenue of China's concrete and cement product industry reached 2,099.69 billion yuan, a year-on-year increase of 9.2%; the total profit was 85.358 billion yuan, a year-on-year decrease of 6.42%. The concrete and cement product industry has become the first industry in the building materials sector with annual operating revenue exceeding 2 trillion yuan. With the continuous optimization of pandemic policies, the production of concrete and cement products has naturally become a hot investment opportunity for investors today.

Main Business Revenue of China's Concrete and Cement Product Industry from 2012 to 2021

Mastering Core Technologies: Leading Enterprises Taking Action

As the only enterprise in the national concrete products and cement products machinery manufacturing industry to receive the honor of "Specialized, Special, and New" Small Giant Enterprise from the Ministry of Industry and Information Technology (MIIT) (MIIT Enterprise Letter [2021] No. 79), Qunfeng Machinery has been deeply involved in the field of concrete product molding machines and related products for 27 years. It is dedicated to the research and development of infrastructure construction products and has mastered a large number of core technologies in machinery manufacturing. The company has obtained over 200 patents for inventions, utility models, and designs, as well as four provincial-level technology achievement certifications.

Qunfeng Machinery's Nan'an Binjiang Industrial Base

During the past three years of repeated outbreaks, Qunfeng Machinery has not been deterred by domestic and international epidemic prevention and control policies. It has dispatched nearly a hundred core technical personnel to engage in equipment production and after-sales maintenance both domestically and internationally, serving over 9,000 customers from around the world.

With the complete relaxation of epidemic prevention policies domestically and internationally, Qunfeng Machinery is well-prepared to impress domestic and foreign customers with its meticulously crafted products and high-quality after-sales service. It aims to provide them with the most comprehensive solutions for concrete product manufacturing. Together with customers from home and abroad, Qunfeng Machinery strives to create brilliance. Choosing Qunfeng Machinery is the best investment decision you can make.