国务院提加强逆周期调节，新型城市建设有望提速

Investment Rating - The industry investment rating is "Leading the Market - A" and the rating is maintained [5]. Core Viewpoints - The State Council emphasizes strengthening counter-cyclical adjustments, and new urban construction is expected to accelerate. Effective investment is to be expanded, enhancing market vitality and increasing quality supply [16][17]. - Infrastructure investment has maintained steady growth since the beginning of the year, but the growth rate has slightly declined. Q4 is typically a peak construction season for the industry, and with counter-cyclical adjustments, infrastructure investment is expected to accelerate in Q4 [16]. - The report suggests focusing on undervalued construction companies, especially as the fundamentals are expected to improve with policy catalysts and marginal improvements in the economic environment [16][10]. Summary by Sections Industry Dynamics Analysis - The State Council's meeting on October 14 highlighted the need for effective investment expansion and the promotion of new urban infrastructure construction, which is expected to drive growth in the construction sector [16][17]. Market Performance - The construction industry experienced a decline of 1.67%, underperforming the Shanghai Composite Index, but the decoration and renovation sector showed strong performance with a 2.88% increase [18][19]. - The overall industry P/E ratio is 11.88, and the P/B ratio is 0.85, indicating a relatively low valuation compared to other sectors [21]. Key Investment Targets - Recommended stocks include major state-owned enterprises such as China Railway, China Communications Construction, and China State Construction, which are expected to benefit from improved fundamentals and valuation recovery [10][12]. - The report also highlights the potential of companies involved in smart construction and infrastructure, such as those utilizing BIM technology [17][11]. Company Announcements - Recent major contract announcements include significant projects won by companies like Zhongyan Dadi and Shaanxi Construction, indicating ongoing demand in the sector [29][30].