Core Viewpoint - The introduction of the "Building Materials Industry Stabilization and Growth Work Plan (2025-2026)" aims to accelerate the elimination of inefficient cement production capacity, leading to a potential rebound in cement prices beyond expectations [1][4]. Industry Overview - The cement industry is currently facing a low capacity utilization rate of around 50%, attributed to declining demand in the real estate market and increased staggered production halts [1][2]. - The new policy prohibits the addition of new cement clinker capacity and requires companies to develop capacity replacement plans by the end of 2025 for any excess production [1][4]. Capacity Management - The implementation of the capacity replacement plan is expected to reduce clinker capacity by approximately 10%, which may accelerate price recovery in the industry [4][5]. - Major companies are expected to accelerate market consolidation, improving industry concentration, which currently stands at 56.5% for the top ten clinker producers [5][6]. Demand and Production Adjustments - Various regional cement associations are mandating staggered production halts, with the Sichuan Cement Association requiring each clinker production line to halt for at least 15 days per month in Q4 [2]. - The overall sentiment in the industry indicates a pessimistic outlook for Q4 demand, prompting increased production halts [2][3]. Financial Performance - In the first half of the year, 73 listed building materials companies reported revenues of 305.5 billion yuan, with net profits of only 11.8 billion yuan, indicating a challenging financial environment [3]. - Some leading cement companies have shifted from profit to loss, highlighting the impact of declining demand [3]. Strategic Responses - Companies are exploring cross-industry transformations to mitigate cyclical downturns, with some investing in sectors like semiconductors and renewable energy [6]. - The policy encourages leading companies to collaborate with social capital to establish green low-carbon transition funds, facilitating the exit of inefficient production capacity [5][6].

Group 1 - The company received notification from its controlling shareholder, Zhejiang Shangfeng Holding Group Co., Ltd., regarding the pledge of a portion of its shares [1] - The announcement includes details about the basic situation of the share pledge and the cumulative pledge situation of the controlling shareholder and its concerted parties [1] - The company has provided a securities pledge registration certificate as a reference document [1]

Group 1 - The company, Shangfeng Cement, announced that its controlling shareholder, Zhejiang Shangfeng Holding Group Co., Ltd., pledged 12,000,000 shares to Ningbo Bank Co., Ltd. Shaoxing Branch [2] - The purpose of the share pledge is to supplement working capital [2]

甘肃上峰水泥股份有限公司 关于控股股东部分股份质押的公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚 假记载、误导性陈述或重大遗漏。 一、本次控股股东股份质押基本情况 甘肃上峰水泥股份有限公司（以下简称"公司"）近日接到公司控股股东浙江 上峰控股集团有限公司（以下简称"上峰控股"）通知，获悉上峰控股所持有本公 司的部分股份被质押，具体事项如下： | | 是否为控 | | | | 是否为限 | 是否 | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 股东 | 股股东或 | 本次质 | 占其所 | 占公司 | 售股（如 | 为补 | 质押起 | 质押到 | | 质押 | | 名称 | 第一大股 | 押数量 | 持股份 | 总股本 | 是，注明限 | 充质 | 始日 | 期日 | 质权人 | 用途 | | | 东及其一 | （股） | 比例 | 比例 | 售类型） | 押 | | | | | | | 致行动人 | | | | | | | | | | | 上峰 | 是 | 12,000, ...

Core Viewpoint - Gansu Shangfeng Cement Co., Ltd. announced that its controlling shareholder, Zhejiang Shangfeng Holding Group Co., Ltd., pledged 12 million shares, representing 3.73% of its holdings and 1.24% of the company's total share capital, to supplement liquidity [1] Group 1 - The pledge initiation date is September 25, 2025, with the pledgee being Ningbo Bank Co., Ltd. Shaoxing Branch [1] - After the pledge, the total number of pledged shares by Shangfeng Holding and its concerted parties will reach 93.1 million shares, accounting for 28.96% of their holdings and 9.60% of the company's total share capital [1] - As of the announcement date, Shangfeng Holding and its concerted parties hold 321,479,293 shares, which is 33.16% of the total shares [1]

Group 1 - The stock price of Shangfeng Cement increased by 5.3% to 9.74 CNY per share, with a trading volume of 148 million CNY and a turnover rate of 1.62%, resulting in a total market capitalization of 9.442 billion CNY [1] - Shangfeng Cement, established on March 6, 1997, and listed on December 18, 1996, is primarily engaged in the production and sales of cement products, including cement clinker, special cement, concrete, and aggregates [1] - The revenue composition of Shangfeng Cement is as follows: cement 69.85%, clinker 16.78%, sand and gravel aggregates 6.20%, concrete 2.76%, environmental disposal 2.25%, other businesses 1.96%, and real estate 0.21% [1] Group 2 - Hai Fu Tong Fund has a significant holding in Shangfeng Cement, with the Hai Fu Tong Style Advantage Mixed Fund (519013) holding 1.1662 million shares, accounting for 2.77% of the fund's net value, making it the seventh-largest holding [2] - The Hai Fu Tong Style Advantage Mixed Fund has achieved a year-to-date return of 28.1%, ranking 3502 out of 8171 in its category, and a one-year return of 48.87%, ranking 3063 out of 8004 [2] - The fund manager, Lu Yiwen, has been in charge for 5 years and 26 days, with the fund's total asset size at 3.32 billion CNY [3]

Market Overview - The cement sector experienced a decline of 0.79% on September 25, with Sanhe Pile leading the drop [1] - The Shanghai Composite Index closed at 3853.3, down 0.01%, while the Shenzhen Component Index closed at 13445.9, up 0.67% [1] Individual Stock Performance - Notable gainers included Guotong Co. (5.63% increase), Jianfeng Group (2.88% increase), and Fujian Cement (2.23% increase) [1] - Major decliners included Sanhe Pile (4.50% decrease), Shangfeng Cement (3.75% decrease), and Huaxin Cement (2.23% decrease) [2] Trading Volume and Value - Guotong Co. had a trading volume of 114,200 shares and a transaction value of 154 million yuan [1] - Sanhe Pile recorded a trading volume of 231,800 shares with a transaction value of 193 million yuan [2] Capital Flow Analysis - The cement sector saw a net outflow of 238 million yuan from institutional investors, while retail investors contributed a net inflow of 278 million yuan [2][3] - Key stocks with significant net inflows from retail investors included Fujian Cement and Sanhe Pile, while Guotong Co. and Jianfeng Group saw net outflows from institutional investors [3]

Company Overview - Gansu Shangfeng Cement Co., Ltd. is located in Hangzhou, Zhejiang Province, and was established on March 6, 1997, with its listing date on December 18, 1996 [2] - The company primarily engages in the production and sales of cement clinker, cement, special cement, concrete, and aggregates [2] - The revenue composition includes: Cement 69.85%, Clinker 16.78%, Aggregates 6.20%, Concrete 2.76%, Environmental disposal 2.25%, Other businesses 1.96%, Real estate 0.21% [2] Financial Performance - For the first half of 2025, the company achieved operating revenue of 2.272 billion yuan, a year-on-year decrease of 5.02%, while the net profit attributable to shareholders increased by 44.53% to 247 million yuan [2] - The company has cumulatively distributed 3.95 billion yuan in dividends since its A-share listing, with 1.318 billion yuan distributed in the last three years [3] Stock Performance - On September 25, the stock price of Shangfeng Cement fell by 2.08%, trading at 9.41 yuan per share, with a total market capitalization of 9.122 billion yuan [1] - Year-to-date, the stock price has increased by 33.85%, with a 5-day increase of 8.91%, a 20-day increase of 5.38%, and a 60-day increase of 14.48% [1] - The stock has appeared on the "Dragon and Tiger List" once this year, with the latest appearance on July 23, where it recorded a net purchase of 6.306 million yuan [1] Shareholder Information - As of August 31, the number of shareholders was 45,900, a decrease of 12.46% from the previous period, with an average of 21,115 circulating shares per shareholder, an increase of 14.23% [2] - As of June 30, 2025, Hong Kong Central Clearing Limited was the eighth largest circulating shareholder, holding 10.2092 million shares, an increase of 2.4012 million shares from the previous period [3]

Market Overview - On September 24, the cement sector declined by 0.63% compared to the previous trading day, with Sanhe Pile leading the decline [1] - The Shanghai Composite Index closed at 3853.64, up 0.83%, while the Shenzhen Component Index closed at 13356.14, up 1.8% [1] Individual Stock Performance - Top gainers in the cement sector included: - Shangfeng Cement (000672) with a closing price of 9.61, up 9.95% on a trading volume of 468,400 shares and a turnover of 437 million yuan [1] - Fujian Cement (600802) closed at 5.39, up 3.06% with a trading volume of 137,600 shares and a turnover of 72.72 million yuan [1] - Longquan Co. (002671) closed at 4.80, up 1.91% with a trading volume of 113,000 shares and a turnover of 53.61 million yuan [1] - Notable decliners included: - Sanhe Pile (003037) closed at 8.67, down 4.73% with a trading volume of 342,600 shares and a turnover of 296 million yuan [2] - Tianshan Co. (000877) closed at 6.15, down 3.15% with a trading volume of 972,000 shares and a turnover of 591 million yuan [2] - Qingsong Jianhua (600425) closed at 4.43, down 2.21% with a trading volume of 847,100 shares and a turnover of 372 million yuan [2] Capital Flow Analysis - The cement sector experienced a net outflow of 94.01 million yuan from institutional investors, while retail investors saw a net inflow of 91.34 million yuan [2] - Key capital flows for selected stocks included: - Shangfeng Cement had a net inflow of 1.30 billion yuan from institutional investors, but a net outflow of 57.59 million yuan from retail investors [3] - Fujian Cement saw a net inflow of 16.88 million yuan from institutional investors, with a net outflow of 5.86 million yuan from retail investors [3] - Huaxin Cement (600801) had a net inflow of 16.56 million yuan from institutional investors, while retail investors had a net outflow of 27.86 million yuan [3]

Investment Rating - The report maintains a "Positive" outlook on the building materials industry for 2025, highlighting investment opportunities in the fiberglass and cement sectors, while suggesting stock selection in consumer building materials and early-cycle segments [2][3]. Core Insights - The building materials industry has shown signs of recovery, with a narrowing revenue decline and improved profitability in the cement and fiberglass sectors. The overall revenue for sample companies in the first half of 2025 was 277.57 billion yuan, a year-on-year decline of 4.1%, which is a 10.7 percentage point improvement compared to the entire year of 2024. Net profit attributable to shareholders reached 14.82 billion yuan, a year-on-year increase of 38.9% [5][15]. - The cement industry is experiencing a gradual recovery, with significant profit improvements. In the first half of 2025, the cement sector achieved a revenue of 118.8 billion yuan, down 7.5% year-on-year, but net profit surged by 1110.5% to 5.4 billion yuan. This recovery is partly due to a low base effect from 2024 and favorable pricing conditions [6][28]. - The fiberglass sector reported robust growth, with sample companies generating a total revenue of 31.1 billion yuan, a 20.9% increase year-on-year, and net profit rising by 127.0% to 3.29 billion yuan. The recovery in pricing and the growth in specialty fabric business are contributing factors [7][19]. - Consumer building materials showed a smaller revenue decline of 2.7%, with total revenue of 68.76 billion yuan and net profit down 13.2% to 4.35 billion yuan. Companies like Keda Manufacturing and Sankeshu are demonstrating strong alpha characteristics due to their unique market positions [6][7]. - The glass sector remains under pressure, with a revenue decline of 17.0% to 24.6 billion yuan and a net profit drop of 60.3% to 1 billion yuan, primarily due to high base effects and weak demand in the construction sector [5][19]. - Early-cycle industries are still facing challenges, but leading companies like Subote have reported revenue and profit growth by expanding into major engineering projects [8][19]. Summary by Sections 1. Industry Revenue Decline Narrowing, Cement and Fiberglass Perform Well - The building materials industry is categorized into six segments: cement, glass, fiberglass, early-cycle, consumer building materials, and new materials. The overall revenue decline has narrowed, and profitability has improved, particularly in the cement and fiberglass sectors [15][19]. 2. By Industry: Cement and Fiberglass Recovery, Consumer Building Materials Seek Alpha 2.1 Cement: Recovery Certainty Gradually Realized - The cement industry is showing signs of recovery with improved profitability. The first half of 2025 saw a revenue of 118.8 billion yuan, down 7.5% year-on-year, and a net profit of 5.4 billion yuan, up 1110.5% [28][34]. 2.2 Fiberglass: Profitability Out of Undervaluation, Steady Recovery Expected - The fiberglass sector has shown significant growth, with a total revenue of 31.1 billion yuan, a 20.9% increase year-on-year, and net profit rising by 127.0% [7][19]. 2.3 Consumer Building Materials: Revenue Stabilizing, Some Companies Show Profit Alpha - The consumer building materials segment experienced a revenue decline of 2.7%, totaling 68.76 billion yuan, with net profit down 13.2% to 4.35 billion yuan. Certain companies are demonstrating strong alpha characteristics [6][7]. 2.4 Glass: Photovoltaic Glass Phase Improvement, Building Glass Still Under Pressure - The glass industry is under pressure, with a revenue decline of 17.0% to 24.6 billion yuan and a net profit drop of 60.3% to 1 billion yuan [5][19]. 2.5 Early Cycle: Overall Pressure, Leading Companies Recover First - Early-cycle industries are still facing challenges, but leading companies like Subote have reported revenue and profit growth by expanding into major engineering projects [8][19].