Infrastructure investment, a leading indicator of construction machinery sales, remains high; at the same time, the hourglass of construction machinery investment logic has shifted from infrastructure to real estate. If real estate sales continue to rebound and real estate policy expectations are gradually stabilized, with the gradual decrease in inventory, the new start of real estate is expected to pick up gradually instead of falling sharply again. Real estate sales and new construction starts are expected to turn from negative to positive, which will drive the stock price of construction machinery to stabilize and rebound.

Construction machinery: macro data still needs to be observed. From the macro data point of view, infrastructure investment remained high, while real estate sales and new construction fell. Our point of view: the bottom interval, waiting for the expected rebound of new real estate construction.

Aerospace: The navigation plan was officially released, and the industrial development path was clear. The "National Satellite Navigation Industry Mid- and Long-Term Development Plan" was officially released this week. The "Plan" has planned the mid- and long-term thinking for the development of my country's satellite navigation industry in terms of market space, industry needs, industrial chain support measures, and key projects.

At the same time, from the downstream market we track, the Beidou navigation market has shown obvious signs of start-up. We believe that in 2013, Beidou navigation will truly move from Beidou to the actual application of Beidou navigation, and industrial applications have entered a stage of substantial progress:

1. The government's support for the Beidou navigation application industry will increase, focusing on subsidies, demonstration projects, standard determination and mid- and long-term planning support.

2. Industrial applications will follow the order of military (centralized procurement, special installation)-industry applications-mass market;

3. Companies in the Beidou navigation industry will begin to release and promote Beidou navigation chips, terminals, and integrated application models for their respective markets. The discussion of business models has become the focus of their attention. From an investment perspective, we still recommend paying attention to companies that focus on the military and industrial user markets, still recommending China Satellite, and paying attention to Guoteng Electronics and Beidouxingtong.

Shipbuilding: The ship market is recovering. In September 2013, global new orders received 3.89 million DWT, a year-on-year increase of 15%, but a decrease of 66% compared with the previous month. From January to September this year, global new orders totaled 82.67 million DWT, an increase of 99% compared to the same period in 2012. Prices of various ship types are still slowly rising. The Panamanian ship price this month is 27 million U.S. dollars, which is unchanged compared with last month. Ship prices for VLCC, Avra ​​and Cape of Good Hope were US$90 million, US$49.25 million and US$50 million, respectively, up by US$500,000, US$250,000 and US$1 million compared with the previous month. At present, shipping is still in the stage of absorbing excess capacity, and 2013 will be a year when shipping companies move from a cash point to a profit balance point. From the perspective of the grasp of investment opportunities, the introduction of the Implementation Plan will help the shipbuilding industry to stabilize the bottom range after a five-year depression, but the continuous improvement of new orders still needs to be restored in the shipping market, so it is recommended that mid- to long-term investors wait patiently Investment opportunities in the shipbuilding industry in 2014. But the true bottom of the shipbuilding industry’s new orders is coming, and investors can look at investment opportunities in the shipbuilding industry with a more positive attitude.