需求侧发力，反内卷、化债持续推进，行业基本面有望改善

Investment Rating - The report maintains an investment rating of "Outperform the Market - A" for the construction industry [5]. Core Insights - The construction industry is expected to see marginal improvements in its fundamentals due to the ongoing implementation of debt reduction policies and the initiation of key strategic projects by the government [3][16]. - The macroeconomic policies in China have become more proactive, with a GDP growth of 5.3% year-on-year in the first half of 2025, supported by effective investment expansion [14]. - The report highlights the importance of both demand-side and supply-side strategies, emphasizing the need for a combination of fiscal and monetary policies to stimulate demand and manage industry capacity [14][15]. Summary by Sections Industry Dynamics Analysis - The construction industry is experiencing pressure on operations, with revenue and performance declining year-on-year in the first half of 2025. However, there is a notable improvement in operating cash flow due to the ongoing debt reduction policies [3][16]. - Key strategic projects are being launched, and the government is focusing on high-quality construction initiatives, including urban renewal and infrastructure projects [14]. Market Performance - The construction industry saw a 2.42% increase from September 8 to September 12, 2025, outperforming the Shanghai Composite Index [17]. - Various sub-sectors within the industry, such as landscaping and engineering consulting, have shown significant gains, with landscaping leading at 5.84% [17][18]. Company Announcements - Several companies in the construction sector have announced major project wins, including contracts worth billions, indicating a positive trend in new business acquisition [28]. Industry News - The report discusses various government initiatives aimed at enhancing infrastructure, including the launch of multiple railway projects and the promotion of smart construction practices [29][30].