Galaxy Securities: Urban development is shifting towards the stage of improving quality and efficiency of existing assets, with great potential for urban renewal.

Galaxy Securities research report believes that the Central Urban Work Conference pointed out that China's urbanization is shifting from a period of rapid growth to a phase of stable development, and urban development is transitioning from a stage of large-scale incremental expansion to a phase focused on improving the quality and efficiency of existing stock. The conference proposed seven tasks, including optimizing the modern urban system, promoting the urbanization construction with county towns as important carriers in a classified manner, continuing to promote the urbanization of agricultural transfer population; building innovative cities with vitality, carrying out urban renewal with high quality; constructing comfortable and convenient livable cities, steadily promoting the transformation of urban villages and dilapidated houses; building green, low-carbon beautiful cities; constructing safe and reliable resilient cities, accelerating the renovation and upgrade of old pipelines, and strengthening urban natural disaster prevention and control; building civilized cities that value virtues and kindness; constructing convenient and efficient smart cities, etc. Construction-related sectors such as state-owned enterprises in the construction and renovation of cities, planning and design consultancy, landscape engineering, and interior decoration may see investment opportunities, especially local state-owned enterprises and high-quality leading construction companies in key areas of renovation are more likely to benefit.