建筑行业第368期周报：财政化债提升资产质量和现金流，专项债增加实物工作量

Investment Rating - The report rates the construction industry as "Overweight" [5] Core Insights - Fiscal policies are expected to enhance the asset quality and profitability of construction companies, with a focus on increasing cash flow and improving accounts receivable quality [3][16] - The report highlights that the central government has allocated significant debt limits to support local governments in managing existing debt risks and improving cash flow for construction companies [3][4] - The fourth quarter is projected to be the peak season for construction activities, leading to improved performance expectations for state-owned construction enterprises [4][16] Summary by Sections Fiscal Policy Impact - The central government has arranged over 2.2 trillion yuan in local government debt limits for 2023 and an additional 1.2 trillion yuan for 2024 to support local governments in resolving debt risks and clearing overdue payments [3] - Special bonds totaling 2.3 trillion yuan are available for use in the next three months, which will enhance cash flow for construction companies [3][4] Performance Expectations - The report anticipates that the implementation of fiscal policies will lead to improved cash flow and asset quality for construction companies, with a focus on state-owned enterprises [4][16] - The report suggests that companies with a price-to-book (PB) ratio below 1 and a dividend yield above 2.25% are preferred investment targets [4][16] Company Recommendations - Recommended companies include China State Construction (PB 0.58, dividend yield 4.5%), China Railway Construction (PB 0.50, dividend yield 3.75%), and China Communications Construction (PB 0.62, dividend yield 2.79%) [4][16] - The report emphasizes the importance of selecting companies with low PB ratios and high dividend yields, particularly those with strong performance in the third quarter of 2023 [4][16]