降准降息助力流动性宽松，静待后续财政发力

Investment Rating - The industry investment rating is "Outperform the Market - B" [5] Core Insights - The recent reduction in reserve requirement ratio by 0.5 percentage points is expected to provide approximately 1 trillion yuan in long-term liquidity to the market, which may lower financing costs for real estate companies and stabilize property sales [16][18] - The construction industry is anticipated to face operational pressure in 2024 and Q1 2025 due to increased tariffs from the US, but domestic demand expansion is expected to support economic growth [18] - The report suggests focusing on companies with stable core business development and emerging business layouts that could create new growth points, such as Huayang International [11][12] Summary by Sections Industry Dynamics - The central bank's recent monetary policy adjustments, including a 0.1 percentage point reduction in policy interest rates and a 0.25 percentage point decrease in housing provident fund loan rates, are aimed at enhancing liquidity and supporting the real estate sector [16][18] - The construction industry is expected to see improved fundamentals and operational indicators as infrastructure policies and investments are likely to be intensified [18] Market Performance - The construction industry experienced a 1.99% increase in stock prices from May 6 to May 9, 2025, with all sub-sectors showing positive performance [19] - The report highlights that 87.20% of companies in the construction sector recorded gains during this period, with significant performers including Shanshui Bide and Chuangxing Resources [21] Key Focus Stocks - The report identifies several key stocks to watch, including traditional infrastructure state-owned enterprises like China State Construction, China Communications Construction, and China Railway Construction, which are expected to benefit from improved financial metrics and valuation recovery [12][18] - It also highlights design firms in the infrastructure sector and international engineering service providers with strong competitive advantages in overseas markets [10][13] Company Announcements - Recent major contract wins include projects by companies such as Tengda Construction and China Communications Construction, indicating ongoing demand in the construction sector [32]