Changjiang Securities·2025-05-18 12:14Investment Rating - The report maintains a "Positive" investment rating for the construction and engineering sector [10]. Core Insights - The revised "Major Asset Restructuring Management Measures" by the China Securities Regulatory Commission aims to simplify review processes and enhance regulatory inclusiveness, which is expected to invigorate the merger and acquisition market [6][7]. - The construction industry is transitioning towards maturity, with companies seeking new growth avenues through mergers and acquisitions due to declining infrastructure investment growth and pressure on revenue performance [8]. Summary by Sections Regulatory Changes - The revised measures include a phased payment mechanism for share acquisitions, increased regulatory tolerance for financial changes and related transactions, and a simplified review process for certain restructuring transactions [6][7]. Market Activity - Since the implementation of the "Merger Six Measures," the scale and activity of the merger and acquisition market have significantly increased, with over 1,400 asset restructuring disclosures and more than 200 billion yuan in completed major asset restructuring transactions [7]. Industry Performance - The construction sector is facing a systemic transformation demand, with projected revenue for listed companies in 2024 expected to decline by 4.29% year-on-year, and net profit expected to decrease by 13.74% [8]. - Historical examples show that several construction companies have successfully enhanced their competitiveness and diversified their operations through mergers and acquisitions [9]. Market Trends - The report highlights that the construction sector's performance has been under pressure, with a notable increase in the number of asset restructuring plans disclosed in 2024 compared to the previous year [7][8].