建筑装饰：人大常会批准化债方案事件点评-化债方案优化出台，建筑企业报表修复进行时

Investment Rating - The report maintains a positive outlook on the construction and decoration industry, indicating an "Overweight" investment rating [3]. Core Insights - The report discusses the approval of a debt resolution plan by the National People's Congress, which aims to replace 6 trillion yuan of local government hidden debt over the next three years, significantly reducing the total hidden debt from 14.3 trillion yuan to 2.3 trillion yuan by 2028 [3]. - The debt resolution strategy shifts from "developing through debt resolution" to "resolving debt through development," aiming to improve cash flow for local governments and stimulate economic growth [3]. - The report anticipates a recovery in the construction industry in the fourth quarter of 2024 and into 2025, driven by improved cash flow and reduced debt pressure [3]. Summary by Sections Debt Resolution Plan - The plan proposes an annual replacement of 2 trillion yuan of hidden debt from 2024 to 2026, with an additional 800 billion yuan allocated for debt resolution from new local government special bonds [3]. - The plan is expected to alleviate the repayment pressure on local governments, enhancing their cash flow and financial stability [3]. Economic Outlook - Infrastructure investment (excluding electricity) increased by 4.1% year-on-year from January to September 2024, indicating a potential recovery in the construction sector [3]. - The report suggests that the construction industry will benefit from the economic stabilization and recovery expected in late 2024 and 2025 [3]. Investment Recommendations - Large state-owned construction enterprises are expected to benefit from improved cash flow and economic recovery, with specific recommendations for companies such as China Railway and China State Construction [3]. - Local private enterprises, particularly in ecological landscaping, are highlighted as potential beneficiaries of improved receivables [3]. - Companies in the supply chain are also expected to see indirect benefits from improved cash flow and demand recovery, with a focus on companies like Zhite New Materials and Southeast Network Framework [3].