Group 1 - The construction sector's performance from Q4 2024 is primarily driven by debt resolution policies, external disturbances, and industry sentiment [1] - Since May, positive developments in US-China negotiations have improved market risk appetite, leading to a spillover of positive sentiment into the construction industry [1] - As of June 10, 2025, the construction sector's PE ratio is 10.73x, at the 58th percentile since 2014, while the PB ratio is 0.73x, at the 7.1st percentile since 2014, indicating a significant decline in profitability [1] Group 2 - Market risk appetite has been volatile, with construction dividend assets likely to benefit from changes in market preferences and policy support [2] - The construction dividend assets are mainly concentrated in eight major construction state-owned enterprises and high-dividend local infrastructure state-owned enterprises, with their profitability linked to operational performance and macroeconomic improvements [2] Group 3 - Fiscal policies have created a soft constraint on infrastructure spending, with a focus on economically developed regions and areas with sufficient investment from special bonds and central enterprises [3] - Since the implementation of debt resolution policies, 4.4 trillion yuan of refinancing special bonds have been issued to address local government debt issues [3] Group 4 - Investment opportunities are identified in low-valuation central state-owned enterprises, including China State Construction, China Railway, and others [4] - Companies benefiting from the Belt and Road Initiative, such as China National Materials, are also highlighted as potential investment targets [4] - High-growth infrastructure companies, including China Nuclear Engineering and others, are recommended for investment consideration [4]