建筑行业周报：建筑低估值修复可期，材料锚定涨价和自主可控

Investment Rating - The industry rating is "Positive" (maintained) [2] Core Viewpoints - The traditional business weakness has been fully reflected in the valuation of the construction sector, and changes in leading companies' operations should not be overlooked. The construction industry has faced a continuous decline in physical workload growth due to factors such as a downturn in real estate investment and strict control of hidden debts, leading to a long-term valuation stagnation at historical lows, with some companies' PE ratios remaining between 5-10 times and dividend yields around 4%, which is better than bank deposits. Despite the challenging market environment, leading construction companies are actively exploring new growth avenues while consolidating their traditional businesses [1] - The low holding ratio of institutional investors in the construction sector lays a foundation for valuation recovery, with multiple positive factors expected to catalyze upward elasticity in the sector. The government is expected to increase investment in major infrastructure projects, which may reverse the current decline in new construction starts. In this context, qualified and reliable leading engineering companies are likely to emerge from operational lows, boosting demand for upstream material companies [2] - Material prices are expected to rise, with leading construction material companies showing potential for price increases. Recent price hikes in waterproofing products by leading companies reflect enhanced pricing power after supply-side adjustments. The report suggests focusing on companies with strong pricing power and those involved in new materials that support the transition from a manufacturing power to a manufacturing stronghold [2] Summary by Sections - Investment Rating: The construction industry is rated as "Positive" [2] - Traditional Business and Valuation: The construction sector's valuation reflects traditional business weaknesses, with leading companies exploring new growth avenues [1] - Government Policy Impact: Increased government investment in infrastructure is expected to improve the construction sector's performance [2] - Material Price Trends: Leading construction material companies are expected to raise prices, indicating a recovery in profitability [2]