建筑行业周报：市值管理方案出台，10月基建投资边际改善

Investment Rating - The report maintains a "Positive" outlook on the construction decoration industry [1]. Core Insights - The report highlights a marginal improvement in infrastructure investment in October, with a year-on-year growth of 3.4% in fixed asset investment and 4.3% in infrastructure investment (excluding electricity) [17][40]. - The introduction of market value management guidelines by the China Securities Regulatory Commission (CSRC) is expected to enhance the responsibilities of company boards and management, particularly for companies with long-term undervaluation [17][41]. - The report emphasizes the potential for increased government investment in the construction sector, particularly in the fourth quarter of 2024, driven by recent policy shifts [1][17]. Summary by Sections 1. Market Performance - The construction decoration sector experienced a weekly decline of 4.01%, underperforming compared to major indices such as the Shanghai Composite Index (-3.52%) and the Shenzhen Component Index (-3.7%) [5][7]. - The best-performing sub-industry was international engineering, which saw a weekly increase of 1.88% [7]. 2. Industry Changes - Key changes in the industry include the cancellation of the standard for ordinary residential properties, which allows for tax exemptions on sales after two years of ownership, and a reduction in the pre-collection rate for land value-added tax by 0.5 percentage points [17][31]. - The CSRC's new guidelines on market value management require listed companies to establish management systems and disclose valuation improvement plans for long-term undervalued companies [17][41]. 3. Company Updates - Major companies in the sector have secured significant contracts, such as the Design Institute winning a project worth 478 million yuan, representing 14.11% of its 2023 revenue [51]. - China Communications Construction Company won a project totaling 160 million yuan, accounting for 3.32% of its 2023 revenue [51]. 4. Trading Activity - The report notes recent large-scale transactions involving companies like ST Weihai and Zhonggong International, indicating active trading in the sector [13][16]. 5. Profit Forecasts and Valuation Levels - The report provides earnings per share (EPS) forecasts for key companies, with China Railway Group projected to have an EPS of 1.26 yuan for 2024, reflecting a price-to-earnings (P/E) ratio of 5.2 [62]. - China Railway Construction is expected to see a slight decline in net profit growth, with a forecasted decrease of 2% for 2024 [62]. 6. Macro Events - The report outlines upcoming macroeconomic events, including the early allocation of central government budget funds for urban housing projects, totaling 56.6 billion yuan [21]. - It also mentions local government initiatives to increase housing loan limits and support for mergers and acquisitions among listed companies [22][24].