Guotou Securities·2025-03-31 07:58Investment Rating - The industry investment rating is "Leading the Market-A" [5] Core Insights - In 2024, traditional infrastructure central enterprises are under pressure due to a slowdown in industry investment and downstream funding pressures, with total revenue of 3.55 trillion yuan (down 6.39% year-on-year) and net profit of 802.32 billion yuan (down 12.85% year-on-year) [1][2][17] - Q4 showed significant improvement in revenue for China Communications Construction and performance for China Railway Construction, with China Communications Construction achieving a revenue growth of 11.53% [1][2][17] - Cash flow for the four central enterprises improved significantly in Q4, with China Railway, China Communications, and China Metallurgical achieving positive operating cash flow for the year [1][2][17] - The dividend payout ratios for 2024 increased for China Communications, China Railway, and China Railway Construction, reflecting enhanced market returns [1][2][17] Summary by Sections Industry Dynamics - Q4 cash flow for infrastructure central enterprises improved, marking the beginning of the "manned era" in low-altitude flight with the issuance of the first commercial operation certificate for unmanned aerial vehicles [3][18] - The central government's focus on low-altitude economy and supportive policies from local governments are expected to accelerate infrastructure projects [3][18] Market Performance - The construction industry experienced a decline of 2.83%, underperforming compared to major indices [19][21] - The construction sector's performance was ranked 26th among 30 primary industries during the week [19] Company Announcements - Major contracts were awarded to various companies, including China Construction, which secured projects totaling 122.3 billion yuan [29][30] Valuation Insights - As of March 28, the construction and decoration industry had a price-to-earnings (P/E) ratio of 9.77 and a price-to-book (P/B) ratio of 0.79, with the lowest P/E ratios observed in China Construction and other major players [24][25]