建筑装饰行业跟踪周报：11月建筑PMI有所走弱，政策预期有所改善

Investment Rating - The report maintains an "Overweight" rating for the construction and decoration industry [1] Core Views - The November PMI for the construction industry decreased to 49.7%, down 0.7 percentage points from the previous month, indicating a contraction in business activity due to seasonal factors such as colder weather [13][30] - New orders and business activity expectations show signs of stabilization, with new orders index at 55.6% and business activity expectations at 43.5% [30] - The ongoing renovation of old urban communities is on track, with 5.3 million new projects initiated from January to October 2024, achieving 98% of the annual target [31] Industry Data Review - The construction PMI indicates a contraction, with the business activity index at 49.7% [30] - The infrastructure investment growth rate increased by 0.2 percentage points to 4.3% year-on-year in October [13] - The report highlights the potential for recovery in the construction sector due to the implementation of debt reduction policies and increased fiscal support [13] Policy Review - The report notes that the renovation of old urban communities is expected to drive demand for related building materials, with significant progress in various regions [31] - The "2024-2025 Energy Saving and Carbon Reduction Action Plan" is expected to boost the market for prefabricated buildings and energy-saving infrastructure [14] Company Dynamics - The report recommends focusing on state-owned enterprises with low valuations and stable performance, specifically mentioning China Communications Construction, China Electric Power Construction, and China Railway [13] - For international engineering, companies like China National Materials and Shanghai Port Construction are highlighted as potential beneficiaries of overseas project demand [14] Market Performance - The construction and decoration sector saw a weekly change of 0.81%, underperforming compared to the Shanghai Composite Index and the Wind All A Index, which increased by 1.32% and 2.15%, respectively [39] - The report lists top-performing stocks in the sector, including ST Guangtian and Fuhuang Steel Structure, while noting underperformers like Dongyi Risheng and Zhejiang Construction [40][44]