China has announced big plans to build more cities, and JPMorgan analysts say it’s time to buy some infrastructure stock. It is based on news earlier this month that China’s top executive, the State Council, has relaxed housing rules to allow migrant workers from rural areas to settle in small towns. In terms of numbers, so-called county cities still need more infrastructure, while China plans to increase the nationwide share of people living in cities.
JPMorgan analysts estimate that the per capita capital expenditure on municipal infrastructure in county cities is about half that of cities. Chinese President Xi Jinping also announced late last month that he would push for more infrastructure development at the national level. “Despite obstacles led by Omicron, YTD, infra [fixed-asset investment] Special bond issues and FAIs will continue to be encouraged based on new multi-year highs, “JPMorgan’s equity macro research team said in a May 9 report. New investment products for have helped contractors finance and cash flow. Below are three stocks that have been ranked in JPMorgan’s top 10 list.
The following names were the most anticipated rise at the time of reporting. Analysts rated the three companies as overweight, reflecting expectations that stocks Over the next six to 12 months, the average coverage of the team will exceed the total total return. And Japan. According to Refinitiv Eikon data In the first quarter of this year, the company’s gross profit fell 8% to 811.6 million yuan ($ 123 million). In the first quarter of 2021 it is out of a high base. Last year’s total profit rose 18.2% to 4.03 billion yuan. Shares have fallen more than 40% for the year so far, but according to JPMorgan’s May 9 report, analysts forecast a 56% uptrend. Analysts have not set a specific price target for any of the stocks on their list. Women’s Technology State-owned Women’s Technology operates an electric power grid primarily for industrial use. In the first quarter, the company posted a gross profit of 1.32 billion yuan, up nearly 25% from a year earlier, according to Refinitive Econ data.
Shares of Nari Technology in Shanghai have fallen 20% so far this year. At the time of the May 9 report, JPMorgan analysts had forecast a 46% rise for the stock. China Railway Construction State-owned China Railway Construction builds bridges, tunnels and subways in China, and has a railway electrification business, according to its website. Total profit for the first quarter rose 11.3% to 18.66 billion yuan, according to Refinitive Econ data. Hong Kong-listed shares of China Railway Construction have risen about 2% so far this year. At the time of the May 9 report, JPMorgan analysts had forecast a 43% rise for the stock. – CNBC’s Michael Bloom contributes to this report.