建筑行业：财政发力，建筑板块全面受益

Investment Rating - The report maintains an "Outperform" rating for the construction sector [1]. Core Insights - The construction sector is expected to benefit from fiscal stimulus measures, with a focus on debt resolution for state-owned enterprises and support for high-quality private enterprises in infrastructure [2][21]. - The construction industry has seen a cumulative increase of 16.06% since the beginning of 2024, ranking 12th among 29 sectors [5][8]. - Institutional holdings in the construction sector remain low, with a fund holding ratio of 0.92% as of Q3 2024, indicating potential for growth [9]. - New signed orders in the construction industry decreased by 4.74% year-on-year in Q3 2024, with most sub-sectors experiencing declines [11]. - The construction sector's revenue and net profit have been under pressure, with a year-on-year decrease of 5.09% in revenue and 12.66% in net profit for the first three quarters of 2024 [17]. Summary by Sections 1. Market Overview - The construction sector's performance has been weaker than the market, with a ranking of 12th in terms of growth among all industries [4][5]. - The sector's institutional holdings are below benchmark levels, indicating a potential for increased investment [9]. 2. Order and Revenue Trends - The construction industry saw a 4.74% decline in new signed orders in Q3 2024, with most sub-sectors experiencing a downturn [11]. - Revenue for the construction sector decreased by 5.09% year-on-year in the first three quarters of 2024, with net profit down by 12.66% [17]. 3. Policy and Investment Environment - Since the Central Political Bureau meeting on September 26, 2024, a series of supportive policies have been introduced to stimulate the construction sector [23][33]. - The issuance of special bonds by local governments has accelerated, with a total of 38,964.76 billion yuan issued by the end of October 2024, achieving a 99.91% issuance rate [34]. 4. Financial Health and Debt Management - The construction sector's asset-liability ratio has increased, while return on equity (ROE) has decreased, indicating a shift towards stabilizing leverage [19]. - A significant policy initiative has been approved to increase local government debt limits by 60,000 billion yuan to address hidden debt issues, which is expected to alleviate financial pressure on the sector [41][42].