The Asia-Pacific construction sector is the largest in the world and is increasing at a healthy rate, owing to the rising population, increase in middle-class income, and urbanization. As per the statistics of the Nation Bureau of Statistics of China, the revenues of the construction sector registered a CAGR of ~3.75% between 2013-2018 and was valued at ~CNY 40,000 million in 2018. In 2019, the country’s construction industry is expected to rise by almost ~6%. Real estate investment, which includes investments in the residential and commercial sector and office spaces, rose by ~11.6% in January-February in 2019, compared to the same period in the previous year. The robust investment in the property sector was supported by steady housing prices and an increase in property construction. However, the fallout from the trade feud with China has led to increased volatility in the financial markets and caused businesses to turn more cautious. Manufacturing activity has pulled back considerably, and it is likely to either stall or contract during the first part of the year. Forecast for economic growth has scaled back as businesses have turned more cautious. In Southeast Asia, Indonesia is the largest and one of the fastest-growing markets. With annual population growth at about ~4 million, construction may remain a key economic enabler.

China’s cement industry is characterised by relatively low concentration and severe overcapacity. In 2018, China had about 3,500 cement enterprises. However, restrictions on adding new cement capacity have recently pushed cement manufacturers to expand their production through M&As. The economic imbalance between the coastal and inland parts of China is the reason for the unequal performance of cement producers from different regions. Most of them are located in the regions of the Yangtze River Delta, the Pearl River Delta and Southwest China.

2018年底的中央经济工作会议上即明确了5G、人工智能、工业互联网、物联网等“新型基础设施建设”的定位，随后“加强新一代信息基础设施建设”被列入2019年政府工作报告。新基建是面向现代化建设和数字经济发展，并提供智能化产品和服务的新一代数字基础设施体系。

本报告从基建行业需求端、供给端、资金端三个维度入手，分析推导当 前加大基建投资力度的必要性；系统梳理 2020 年基建政策端配套措施、 存量重大项目、未来可投项目；盘点基建投资资金来源、规模。建议布 局低估值、具备中长期成长逻辑的龙头企业。