The A-share E&C sector has dipped 2.8% YTD, mainly on sluggish infrastructurefixed asset investment (FAI) growth, in line with the overall market (CSI 300 down2.3% YTD). 1H21 infrastructure FAI was up by just 5% from 1H19, below the averagegrowth rate of 12% since 2014, according to Wind data. However, we expect growthto accelerate in the next 12 months to 16% y-o-y in 1H22e on: 1) strong YTD growthof new contracts which typically leads FAI by six months; 2) increased LGSB (localgovernment special bond) issuance in 2H21e; and 3) limited downside from furtherdrastic local government deleveraging. Our 2021-23e earnings estimates for CSCEC,PCC and MCC are 8-16% above consensus, given our more bullish new contractforecasts.