东兴证券：东兴晨报-20241213

Group 1 - The core viewpoint of the report indicates that the growth rate of new contracts for overseas engineering projects in China will remain high in 2024, with a significant increase in the proportion of countries participating in the Belt and Road Initiative [2][3] - In the first ten months of 2024, the total value of new contracts signed for overseas engineering projects in China reached 1.26 trillion yuan, representing a year-on-year increase of 16.60%, while in USD terms, it was 177.65 billion, up 15.30% [2] - Major state-owned construction companies in China are expected to benefit from favorable policies and maintain strong growth in new orders, particularly in the context of the Belt and Road Initiative [3][4] Group 2 - The report highlights that leading state-owned construction companies have shown significant growth in new overseas orders, with China State Construction Engineering Corporation reporting a year-on-year increase of 88.12% in new overseas orders for the first three quarters of 2024 [3] - The urbanization rate in China was only 66.16% by the end of 2023, indicating substantial room for infrastructure development, which will be further enhanced by the global competitiveness of state-owned construction companies [3] - The report suggests that the acceleration of overseas expansion will provide greater development opportunities for leading state-owned construction companies, especially in rapidly developing countries along the Belt and Road [3] Group 3 - The investment recommendation emphasizes that the implementation of more proactive fiscal and monetary policies will improve demand in the construction industry, benefiting leading state-owned construction companies [4] - The report suggests a focus on companies such as China Communications Construction Company, China State Construction Engineering Corporation, and others as they are expected to benefit from the favorable policy environment and increased overseas development [4] Group 4 - The report discusses the recovery of small and mid-cap companies in the second half of 2024, driven by ongoing growth stabilization policies and improved market confidence [5][11] - It highlights that the machinery industry is expected to see continued valuation recovery, particularly in sectors like industrial machinery and engineering machinery, as well as specialized equipment with high growth potential [11] - The manufacturing PMI rose to 50.1% in October, indicating a recovery in manufacturing activity, which is expected to benefit general equipment sectors [11] Group 5 - The report notes that the central government's focus on stabilizing the real estate market will lead to more proactive macroeconomic policies, which will positively impact the real estate sector [46][47] - It emphasizes the need for effective implementation of policies to stabilize the real estate market, including support for idle land and affordable housing projects [48][49] - The report suggests that the real estate sector is likely to see increased investment opportunities as policies become more supportive and proactive [49]