建筑和工程：关于全国人大常委会审议通过化债议案的点评-化债方案出炉，ToG类企业报表质量或迎改善

Investment Rating - The report maintains an "Overweight" rating for the construction and engineering sector and a "Buy" rating for non-metallic building materials [5]. Core Insights - The debt reduction policy is beneficial for ToG enterprises, improving their balance sheets and cash flow statements. The policy aims to convert local government hidden debts into visible debts, which will enhance the collection of receivables for related enterprises [2][4]. - Infrastructure investment is primarily driven by local projects, and the report emphasizes the need to observe future policy strength regarding overall infrastructure investment [3]. Summary by Sections Debt Reduction Policy - The National People's Congress approved a resolution to increase the local government debt limit by 6 trillion yuan to replace hidden debts, with an annual allocation of 800 billion yuan for five years starting in 2024. This will significantly reduce the total hidden debt from 14.3 trillion yuan to 2.3 trillion yuan by 2028, saving approximately 600 billion yuan in interest payments over five years [1]. Infrastructure Investment - The report highlights that local government projects dominate infrastructure investment, which has a long repayment cycle. The financial pressure on local governments has led to deteriorating financial statements for related enterprises, as evidenced by declining accounts receivable and inventory turnover rates among major state-owned construction companies [2][3]. Investment Recommendations - The report suggests that state-owned enterprises (SOEs) are likely to see valuation recovery, while private enterprises may experience more significant improvements in their financial statements. Specific companies to watch include Shaanxi Construction, Shandong Road and Bridge, Anhui Construction, and Chongqing Construction for local SOEs, and China Railway Construction, China Railway Group, China State Construction, and China Communications Construction for central SOEs. Private enterprises such as Jianghe Group, Jintanglang, and Longyuan Construction are also recommended due to favorable policy support for the private economy [4].