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" (maintained rating) [2] Core Viewpoints - The construction industry is expected to experience significant growth driven by policy stimulus, state-owned enterprise reforms, and market capitalization assessments in 2024. The industry is anticipated to have two major market rallies: from February to May and from late September to mid-November 2024 [1][2]. - The construction sector is projected to see a growth in infrastructure investment of approximately 900 billion yuan in Q4 2024, with annual growth rates of 9.7% and 8.8% for 2024 and 2025, respectively [2][58]. - The report emphasizes the importance of focusing on high-quality overseas engineering projects, particularly in emerging markets such as Southeast Asia, the Middle East, and Africa, where infrastructure demand is robust [2][163]. Summary by Sections 1. Market Review - The construction sector has shown significant performance differentiation, with the infrastructure segment leading with a growth of 30.40% [27]. - The SW construction index has increased by 10.13% from the beginning of 2024 to November 19, 2024, with the housing construction sub-sector outperforming the broader market [27][67]. 2. Financial Performance - In the first three quarters of 2024, the construction sector's revenue decreased by 5.13% year-on-year, with a net profit decline of 12.41% [48]. - The report highlights the potential for a turnaround in the financial performance of state-owned enterprises due to increased government spending and infrastructure investment [48][240]. 3. Infrastructure Investment - Infrastructure investment is projected to remain a crucial driver for economic growth, with significant increases expected in water conservancy and transportation sectors [58][60]. - The report forecasts a structural and regional focus in infrastructure investment, particularly in economically developed regions such as Sichuan, Zhejiang, Anhui, and Jiangsu [58][236]. 4. Chemical Engineering and Steel Structure - The report anticipates a peak in coal chemical investment over the next five years, with total potential investment reaching 1,032.9 billion yuan, particularly in Xinjiang [252]. - The steel structure sector is expected to benefit from increased demand and cost-saving measures through automation and intelligent upgrades [128][130]. 5. International Engineering - The international engineering sector has seen a 15.3% year-on-year increase in new contracts signed, with a strong focus on Asian and African markets [163][164]. - The report suggests that high-quality overseas projects are essential for construction companies to adapt to the complex international economic landscape [163][164]. 6. Debt Relief and Valuation Recovery - The report discusses the potential for significant valuation recovery for state-owned enterprises, with an estimated upward adjustment of 18.7% for the construction sector due to debt relief measures [199][225]. - The anticipated recovery in asset quality and profitability is expected to enhance the overall market valuation of construction companies [199][225]. 7. Investment Recommendations - The report recommends focusing on sectors benefiting from infrastructure investment and debt relief, particularly state-owned enterprises with high receivables [236][252]. - Specific companies highlighted for potential investment include Sichuan Road and Bridge, Shandong Road and Bridge, and China Communications Construction Company [236][252].