东兴证券：东兴晨报-20241202

Core Insights - The report highlights a decline in new orders for seven major state-owned construction companies in China, with a total of 10.27 trillion yuan signed in the first three quarters of 2024, representing a year-on-year decrease of 3.13% [2][3] - Despite the overall decline, some companies like China State Construction, China Communications Construction, China Energy Engineering, and China Electric Power Construction have shown growth in new orders, with increases of 4.68%, 9.28%, 5.42%, and 5.03% respectively [3][5] - The market share of these state-owned enterprises continues to rise, with their total orders accounting for 42.87% of the construction industry by the end of Q3 2024, up 0.42 percentage points year-on-year [4] Summary by Sections New Orders and Performance - The seven major state-owned construction companies experienced a decline in new orders, with China Railway, China Railway Construction, and China Metallurgical Corporation seeing significant drops of 15.22%, 17.51%, and 9.19% respectively [2][3] - In contrast, companies like China State Construction and China Communications Construction maintained growth in new orders, indicating a mixed performance within the sector [3] Market Share and Industry Trends - The report emphasizes the increasing concentration in the construction industry, driven by advantages in qualifications, funding, experience, and integrated operations [4] - From 2018 to 2023, the market share of the seven major state-owned construction companies has risen from 28.43% to 43.16%, indicating a trend towards greater industry consolidation [4] Investment Recommendations - The report suggests that recent government policies, including the issuance of special bonds and long-term treasury bonds, are likely to improve demand in the construction sector [5] - It recommends focusing on state-owned enterprises like China Communications Construction and suggests monitoring China State Construction, China Chemical Engineering, China Energy Engineering, and China Electric Power Construction for potential investment opportunities [5]