工业/基础材料行业周报（第五十一周）：建材零售同比转正，行业并购重组加快

Investment Rating - The report maintains an "Overweight" rating for the construction and materials sector [19][21]. Core Insights - In November, retail sales of building materials turned positive year-on-year, indicating a recovery in the sector. Mergers and acquisitions are becoming more active, which may accelerate the transition to new business areas and capacity clearing [5][19]. - Infrastructure investment growth remains high, particularly in water conservancy and electricity sectors, while traditional construction orders are still under pressure [7][21]. - The report highlights a significant increase in fixed asset investment in water conservancy (+40.9%) and electricity (+29.6%) from January to November 2024, reflecting strong government support [7][21]. Summary by Sections Infrastructure and Construction - The report notes that from January to November 2024, cumulative infrastructure investment (excluding electricity, heat, gas, and water supply) grew by 4.2%, while real estate investment declined by 10.4% [7][21]. - New signed contracts in the construction sector showed mixed results, with China State Construction Engineering Corporation reporting a 4.6% year-on-year increase in new contracts [8][21]. Building Materials - The retail sales of building materials for November showed a year-on-year increase of 2.9%, marking the first positive growth this year [11][21]. - The report anticipates that the demand for home renovation materials will exceed 1.3 trillion yuan in 2024, driven by a shift towards renovation of existing properties [11][21]. Market Dynamics - The report indicates that the cement production from January to November 2024 was 1.67 billion tons, a decrease of 10.1% year-on-year, while flat glass production increased by 3.2% [13][21]. - The price of cement has shown a downward trend, with a national average price drop of 0.8% recently, influenced by regional demand fluctuations [27][21]. Emerging Trends - The report emphasizes the importance of new material sectors, such as photovoltaic glass and fiberglass, which are expected to maintain stable prices in the short term [15][21]. - The report suggests that companies involved in cleanroom engineering and low-altitude planning design are likely to benefit from high-quality development support [21].