兴证建筑每周观点：利好政策持续落地，看好建筑板块业绩、估值双升

Investment Rating - The report maintains an "Overweight" rating for the construction sector, indicating a positive outlook for the industry [1]. Core Insights - The construction industry is expected to see improvements in both performance and valuation due to favorable policies and a low current valuation, suggesting a high cost-performance ratio for investments [1][2]. - Recent monetary and fiscal policies, including a 0.5 percentage point reduction in the reserve requirement ratio and adjustments to mortgage rates, are anticipated to enhance liquidity and project demand in the construction sector [2][9]. - The report highlights that the construction sector's performance in Q4 is likely to rebound, particularly benefiting leading state-owned enterprises in the real estate and infrastructure sectors [2][4]. Summary by Sections Important Events Tracking - On September 24, the People's Bank of China announced a 0.5 percentage point reduction in the reserve requirement ratio, injecting approximately 1 trillion yuan into the financial market [2][9]. - The Central Political Bureau emphasized the need for effective use of special bonds and long-term government bonds to stimulate investment [2][9]. - The report notes that the issuance of special bonds reached 66.6 billion yuan in the week of September 23-30, with a cumulative issuance of 35,993.46 billion yuan for the year, accounting for 92.29% of the planned quota [3][20]. Market Performance Tracking - From September 23 to September 30, the construction engineering sector (SW) rose by 25.04%, while the overall A-share index increased by 26.30%, resulting in a relative underperformance of -1.26 percentage points for the construction sector [10]. - Sub-sectors such as housing construction, water and electricity, and road and bridge engineering showed significant gains, with increases ranging from 21.77% to 31.71% [10][11]. Industry Data Tracking - Fixed asset investment from January to August 2024 totaled 329,385 billion yuan, reflecting a year-on-year growth of 3.4% [4]. - The report indicates that the construction sector's price-to-earnings (PE) ratio is currently at 9.08, with a price-to-book (PB) ratio of 0.75, both of which are at historical low percentiles [13][15]. - The report recommends focusing on state-owned enterprises with stable growth and low valuations, as well as companies in high-growth sectors such as water and renewable energy [4][12].