建筑装饰行业投资策略：基建产业链价值重估，专业工程+海外市场动能提升

Investment Rating - The industry rating is "Outperform the Market" and is maintained [21]. Core Insights - The construction industry is expected to see significant growth in infrastructure investment, with an estimated increase of approximately 900 billion yuan in Q4 2024, and a year-on-year growth of 9.7% and 8.8% for 2024 and 2025 respectively [21][26]. - The report highlights the potential for recovery in the construction sector driven by government-led infrastructure investments and debt reduction policies, which are anticipated to improve the fundamentals of state-owned enterprises [21][26]. - The report emphasizes the importance of cyclical recovery in specialized engineering and international projects, particularly in emerging markets, which are expected to provide substantial investment opportunities [21][20]. Summary by Sections 1. Market Review - The construction sector has experienced significant differentiation in performance, with a focus on the logic of improving net asset value [9]. - The financial performance in Q3 shows that revenue and profits remain under pressure, particularly for central state-owned enterprises [9][20]. 2. Infrastructure Investment - Infrastructure investment remains a crucial driver for achieving economic growth targets, with a projected increase in investment across various sectors [21][20]. - The report forecasts a structural and regional focus in infrastructure investment, particularly in water conservancy, railways, and urban infrastructure projects [21][20]. 3. Specialized Engineering and International Projects - The chemical engineering sector is expected to see significant growth, with a projected annual investment increase of 220.6% compared to previous years [21][20]. - The international engineering sector is showing robust performance, particularly in regions like Southeast Asia, the Middle East, and Africa, with a notable increase in new contracts signed [21][20]. 4. Valuation and Investment Recommendations - The report indicates that the valuation of construction state-owned enterprises is at a historical low, presenting a potential opportunity for value recovery [21][17]. - Specific stocks are recommended for investment, including Sichuan Road and Bridge, Shandong Road and Bridge, and China Communications Construction Company, among others [22][19].