2025年12月中央经济工作会议点评：推动投资止跌回稳，督促各地主动化债

Investment Rating - The industry investment rating is "Overweight" indicating a positive outlook for the sector [12]. Core Insights - The Central Economic Work Conference emphasized the need to stabilize investment and increase central budget investment to support key projects, particularly in light of the significant pressure on investment due to local government debt and the real estate sector [2][4]. - There is a focus on actively and prudently resolving risks in key areas, urging local governments to take initiative in debt management, which is expected to improve cash flow for construction companies [4]. - Continued deepening of state-owned enterprise reform is highlighted, aiming to enhance the core competitiveness of central state-owned enterprises, which dominate the construction industry [4]. - Green development initiatives are being advanced, with increased demand for carbon reduction transformations in major industries, which is expected to benefit construction engineering companies [4]. - The report suggests that the construction industry will stabilize in 2026, with emerging sectors likely to see higher investment opportunities due to major national strategies [4]. Summary by Sections Investment Analysis - The report indicates that from January to October 2025, fixed asset investment decreased by 1.7% year-on-year, with infrastructure investment (excluding electricity) down by 0.1% [4]. - The emphasis on central funding for key projects is expected to stimulate investment recovery [4]. Key Company Recommendations - Investment focus includes companies such as Sichuan Road and Bridge, China Chemical, and Donghua Technology in the central and western regions, and companies like Jinggong Steel Structure and Zhongsteel International for overseas expansion [4]. - Low valuation companies such as China Railway and Shanghai Construction are expected to see valuation recovery [4]. Valuation Table Insights - The report provides a valuation table for key companies in the construction sector, highlighting earnings per share (EPS) and projected net profit growth rates for 2024 to 2026 [6][7]. - For instance, China Railway is projected to have a net profit of 26,183 million yuan in 2025, with a decline of 6% from the previous year [6].