Huatai Securities: Emphasizing the investment opportunities in the transformation of the network during the "Fifteenth Five-Year Plan".

Huatai Securities research report indicates that looking ahead to the "14th Five-Year Plan", we believe that the shift from "incremental" to "stock" logic is not only applicable to the field of home decoration, but also to infrastructure construction investment. By the end of the "14th Five-Year Plan", China's urbanization rate of permanent residents has reached 67.9%, and the scale of existing buildings is growing. Urban development may shift from the "large-scale demolition and construction" incremental era to a new stage of "stock quality improvement". Since 2024, policies have emphasized "promoting urban renewal work", and against the backdrop of frequent extreme weather and flood disasters, we believe that there is great potential for pipeline renovation, which could be one of the key investment focuses of the "15th Five-Year Plan". We recommend paying attention to investment opportunities in related chains and individual stocks, focusing on engineering pipe materials, waterproof auxiliary materials, and pipeline inspection and operation maintenance tracks.