Although the real estate market is sluggish this year, water conservancy construction is accelerating, which has not affected the development of the pipe industry.

The building materials industry has always been a policy-driven industry. Judging from the interpretation of previous market conditions, large investment markets are usually initiated under the leadership of policies. For example, the investment of 4 trillion yuan in 2009, the stimulus effect of social housing and high-speed rail on cement stocks in early 2011, everyone can see it more clearly.

At the beginning of this year, the No. 1 document of the Central Committee of the State Council "Decision of the State Council on Accelerating the Reform and Development of Water Conservancy", for the first time the theme of water conservancy reform and development, is the first comprehensive policy document on water conservancy since the founding of the People's Republic of China. Document No. 1 proposes that the investment in water conservancy will reach 4 trillion yuan in the next ten years, which is an average of 400 billion yuan per year, which is a substantial increase from 270 billion yuan in 10 years. Large-scale water conservancy construction will be carried out on a large scale during the "Twelfth Five-Year Plan" period.

The boom cycle of the water conservancy and hydropower industry is coming, and the demand for pipes supporting water conservancy construction will also increase accordingly in the future. Judging from the data we have monitored so far, the accumulated investment in fixed assets in the water conservancy industry in the first 10 months has reached 260 billion yuan, a year-on-year increase of 38.2%. The overall level of investment throughout the year. Compared with the average annual investment of 400 billion yuan during the "Twelfth Five-Year Plan" period, the water conservancy industry still has a relatively large room for growth in the future. Therefore, we believe that the prosperity of the pipe industry supporting water conservancy construction will remain high in the next two years.