Investment Rating - The report rates the construction industry as "Overweight" [1] Core Viewpoints - The enhancement of financial policies related to real estate will improve the asset quality and profitability of construction companies, particularly those with improved accounts receivable quality, a price-to-book (PB) ratio below 1, a dividend yield above 2.25%, and a favorable performance trend among central state-owned enterprises [1][2][3] Summary by Sections Financial Increment - Recent policies include a 300 billion yuan initial quota for stock repurchase loans and a potential reduction in the reserve requirement ratio by 0.25-0.5 percentage points by the end of the year [2] - The central bank has allowed 20 securities and fund companies to participate in swap facilities, with initial applications exceeding 200 billion yuan [2] - The China Securities Regulatory Commission encourages listed companies to increase dividends and buybacks to enhance investment value [2] Regional Measures - In Sichuan, significant project investments are projected at 2.15 trillion yuan over the next 2-3 years, with 1.31 trillion yuan allocated for infrastructure [3][14] - The Ministry of Housing and Urban-Rural Development plans to implement 1 million units of urban village renovations through monetary compensation [11] - The report recommends focusing on themes such as fiscal debt, high dividends, and regional construction leaders [3][14] Company Recommendations - Recommended companies include China State Construction (PB 0.6, dividend yield 4.3%), China Railway (PB 0.57, dividend yield 3.2%), and Tunnel Co. (PB 0.7, dividend yield 4.8%) [3][4][18] - The report highlights the importance of companies with low PB ratios and high dividend yields, particularly those with a low performance base in Q3 2023 [18][22] Performance Metrics - The report provides specific performance metrics for various companies, indicating profit growth rates and changes in new orders [2][3][18] - For instance, China State Construction's new orders increased by 5% year-on-year, while its contract sales decreased by 22% [11][12] Market Outlook - The construction sector is expected to benefit from improved cash flow and asset quality due to government fiscal policies, which will enhance the performance of state-owned enterprises [18][19] - The report anticipates a positive market response to the implementation of these policies, with a focus on the construction industry's recovery [11][19]
建筑行业第369期周报：推荐财政化债/高股息/地产/国改/四川/低空等主题
Guotai Junan Securities·2024-10-20 11:10