CITIC Securities: Pipeline Update Brings New Opportunities for Steel Pipe Sector to Reevaluate its Value

According to the research report of CITIC Securities, the core significance of this "15th Five-Year Plan for Urban Renewal" lies in the official transition of the city development model from increment expansion to stock quality improvement. The transformation of underground pipe network renovation has been upgraded from "task description" to "quantitative indicators of 365,000 kilometers." At the same time, the framework of funding sources driven by four rounds of "central subsidies + special bonds + REITs + social capital" is considered to constitute mid-term prosperity beta for the steel pipe sector. This marks the official transition of the demand paradigm from the real estate backend chain to public renewal. The leading pipes will enter the dual recovery channel of performance and valuation along the "project acquisition - revenue recognition - product structure upgrade - gross profit restoration" chain.