Huatai Securities: "The catalyst of 'elegance' attracts attention, undervalued, high dividend infrastructure stocks embrace valuation repair."

Huatai Securities research report stated that the start of construction of the Yarlung Tsangpo River downstream hydropower project has drawn high market attention. Infrastructure stocks are expected to directly benefit from increased demand stimulation, while factors such as low configuration, low valuation, debt reduction, and "anti-inner concavity" that were previously overlooked in the market have returned to the spotlight, leading to a positive resonance and valuation recovery for infrastructure stocks. Two types of companies are expected to benefit: 1) engineering enterprises directly involved in major "Yalong" projects, such as hydropower design and construction, and foundation engineering companies; 2) low-valued, high-dividend leading construction enterprises.