建筑工程业：峰回路转，优选PB小于1股息率大于2.25%沪深300成分股

Investment Rating - The report maintains an "Overweight" rating for the construction engineering industry, indicating a positive outlook for the sector [5]. Core Views - The report highlights that policy measures have exceeded expectations, establishing a triple bottom of low allocation, low valuation, and low expectations, leading to a market reversal. It recommends increasing holdings in high-dividend, low-PB central state-owned enterprises with strong performance in the third quarter [3][4]. Summary by Sections Key Company Recommendations - The report recommends focusing on high-dividend stocks with a PB ratio below 1 and a dividend yield greater than 2.25% among the CSI 300 constituents [5]. - Specific companies highlighted include: - China State Construction: PB 0.5, dividend yield 5% - China Railway Construction: PB 0.4, dividend yield 4.8% - China Communications Construction: PB 0.45, dividend yield 3.9% - China Electric Power Construction: PB 0.6, dividend yield 2.9% [3][4]. Industry Performance Metrics - The report notes significant growth in infrastructure investments, with water management investment up 33%, grid engineering investment up 23.1%, and power engineering investment up 5.1% in the first eight months [4]. - The report provides a detailed analysis of order growth and net profit changes for major companies, indicating varied performance across the sector [3][4]. Earnings Forecasts - The report maintains earnings per share (EPS) forecasts for 2024-2026 at 1.40, 1.47, and 1.54 yuan, reflecting growth rates of 7%, 5%, and 5% respectively. The target price is set at 7.76 yuan, corresponding to a PE ratio of 5.5 times for 2024 [9]. - The report emphasizes the resilience of profit growth and the continuous optimization of order structures for key companies [10]. Market Trends - The report indicates that the construction engineering sector is experiencing a rebound, driven by favorable policies and improved market conditions. It suggests that the current environment offers more elasticity and potential for sustained future performance [4][5].