区域投资有望增强，产业升级空间广阔

Investment Rating - The report maintains a "Buy" rating for the construction and engineering sector as well as the building materials sector [11][13]. Core Insights - Regional investments are expected to increase, and there is significant room for industrial upgrades. The issuance of special refinancing bonds has surpassed 1.49 trillion yuan, with 1.09 trillion yuan allocated for replacing hidden debts, which is anticipated to improve project construction volumes in Q4 2024 and 2025 [13][14]. - The report highlights a short-term improvement in new home sales and recommends focusing on resilient consumer building material leaders with high dividends [13][18]. - The report emphasizes the importance of supply-side constraints and cyclical demand in the construction industry, recommending companies such as Tunnel Co., China Chemical, and China Nuclear Engineering [13][37]. Summary by Sections Industry Overview - As of November 22, the national cement shipment rate was 50.1%, with a week-on-week decline of 2.1 percentage points and a year-on-year decline of 6.9 percentage points. The operating rate of cement mills was 42.7%, down 1.6 percentage points week-on-week [13][18]. - The average price of domestic float glass was 79 yuan per weight box, down 0.6% week-on-week, with an inventory of 42.82 million weight boxes, an increase of 3.4% week-on-week [2][25]. Key Companies and Developments - Tunnel Co. announced plans to acquire 100% equity of Ruijin Cheng Service for 81 million yuan to expand its operational layout [3]. - The report recommends several companies for investment, including Tunnel Co. (600820 CH), China Chemical (601117 CH), and China Nuclear Engineering (601611 CH), all rated as "Buy" with target prices set above their current market prices [11][37]. Market Dynamics - The report notes that the construction industry is undergoing a transformation, with a focus on technology and innovation to meet high-quality housing demands. The government is expected to support this transition through various initiatives [16][18]. - The report also discusses the performance of specific materials, indicating that the prices of photovoltaic glass have decreased, while fiberglass and carbon fiber prices have stabilized [20][21]. Recommendations - The report suggests a focus on companies with strong performance in the consumer building materials sector, particularly those showing resilience in revenue growth or narrowing losses [18][19]. - It highlights the importance of monitoring supply-side adjustments and the pace of new capacity releases in the materials sector [20][21].