East Money Securities·2026-02-01 13:45Investment Rating - The report maintains a "stronger than market" rating for the construction and decoration industry [3]. Core Insights - The report emphasizes the arrival of a new industrial era, highlighting the significant opportunities for construction companies to engage in cross-industry transformations [17]. - It notes that the net financing of special bonds has increased year-on-year, with a total of 3,086 billion yuan in net financing as of January 30, 2026, which is higher than the average of the past three years [22][23]. Summary by Sections 1. Industry Viewpoints and Investment Recommendations - The construction and decoration index fell by 1.44%, underperforming the overall A-share index, which declined by 0.44% [16]. - Key sectors such as international engineering, other professional engineering, and chemical engineering showed positive performance, with increases of 2.19%, 1.27%, and 0.69% respectively [16]. 1.1 Future Industrial Era and Opportunities - The report discusses the importance of commercial aerospace and low-altitude economy as vital carriers for expanding human activities and resource acquisition [17]. - It highlights the implementation of the "155 strategy" by China Aerospace Science and Technology Corporation, suggesting a focus on companies involved in low-altitude infrastructure and space data analysis [17]. - Companies such as Roman Co., Pudong Construction, and Honglu Steel Structure are noted for their potential benefits from advancements in computing power and commercial aerospace [17][19]. 1.2 Special Bond Financing - The report indicates that the net financing of special bonds has increased, with a total issuance of 3,231 billion yuan, completing 7% of the annual issuance target [22]. - The report also mentions that the financing of urban investment bonds has contracted, with a total net financing of 93.21 billion yuan as of January 30, 2026 [22]. 3. Key Company Dynamics - The report tracks significant company developments, including China Railway Construction's new contracts totaling 1.6 trillion yuan in Q4, which remained stable year-on-year [21]. - Zhejiang Communications' new contracts in Q4 increased by 32.0% year-on-year, indicating a rebound in new orders for major construction firms [21]. - The report suggests that the market share of leading construction companies is gradually increasing, supported by favorable policies [21]. 4. Industry Valuation Status - The report provides insights into the valuation of various sectors within the construction industry, indicating a focus on cyclical recovery and new economic directions such as commercial aerospace and AI [28].