Tianfeng Securities·2025-10-12 09:41Investment Rating - The industry rating is maintained as "Outperform" [5] Core Insights - The construction index increased by 4.6% recently, outperforming the Shanghai and Shenzhen 300 index by 2.94 percentage points, indicating a positive market trend for the construction sector [1][4] - There is an expectation for stable growth in infrastructure in Q4, with a focus on investment opportunities in the western regions of China, particularly in Xinjiang and Tibet [2][23] - The government has issued guidelines to combat price competition issues, emphasizing the importance of anti-involution investment themes [3][25] Summary by Sections 1. Q4 Infrastructure Stimulus Expectations - Economic data from July to August 2025 showed a slowdown, prompting expectations for increased infrastructure policies in Q4 [13] - Special bonds and long-term treasury bonds are being issued at a rapid pace, with special bonds totaling 3.68 trillion yuan, accounting for 83.6% of the annual quota [14][15] - The western region's fixed asset investment grew by 6.6%, surpassing the national average, with significant growth in provinces like Tibet and Xinjiang [23][24] 2. Governance of Price Competition - The National Development and Reform Commission and the State Administration for Market Regulation have issued guidelines to address price competition issues, promoting fair market practices [3][25] - The report suggests focusing on four investment themes related to anti-involution, including price elasticity and downstream profit improvement [26][27] 3. Nuclear Power Sector Insights - Key breakthroughs in nuclear fusion technology are expected to enhance the attractiveness of the nuclear power sector, with significant investments planned [29] - The report identifies leading companies in the nuclear power construction sector, such as China Nuclear Engineering and China Energy Engineering [30][31] 4. Market Review - The construction index's recent performance indicates a strong market, with notable stock gains from companies like China Nuclear Engineering and Xinjiang Communications Construction [33][34] 5. Investment Recommendations - The report emphasizes the importance of infrastructure investment in high-growth regions and suggests focusing on companies involved in major projects in the western regions [38][39] - It also highlights the potential of the nuclear power sector and emerging business directions, recommending companies like China Nuclear Engineering and Libat [40]