Investment Rating - Industry rating is maintained at "Outperform the Market" [5] Core Viewpoints - The cement clinker price in the Yangtze River Delta has increased by 30 CNY/ton, indicating a positive shift in market sentiment and a proactive approach from companies to stabilize prices and protect profits [3][14] - The overall cement shipment rate in May was 48%, showing a slight decline year-on-year, but the recent price increase is expected to boost market confidence [3][17] - The report highlights that traditional building materials are nearing a cyclical bottom, while new materials are expected to continue their growth trajectory due to high demand and domestic substitution opportunities [19] Summary by Sections Market Review - The Shanghai Composite Index fell by 1.08%, while the building materials sector rose by 0.59%, with the ceramics sector showing the highest increase of 3.77% [12][17] - Key stocks in the recommended portfolio include Zhongcai Technology (+5.1%), Western Cement (+4.1%), and others [12][19] Price Trends and Market Sentiment - The sales area of commercial housing in 30 major cities decreased by 2.46% year-on-year, but government policies are aimed at stabilizing the real estate market [2][14] - The report anticipates that cement prices will rise following the clinker price increase, supported by a decrease in coal prices [3][14] Key Sub-Industries Tracking - Cement: The national average price fell by 0.8%, but the Yangtze River Delta has initiated price increases, indicating potential stabilization in the market [17] - Glass: The photovoltaic glass market is under pressure, with prices declining, while float glass prices have also seen a slight decrease [18][19] - Fiberglass: The market for alkali-free yarn continues to decline, with prices dropping by 0.62% week-on-week [19] Long-term Value and Growth Potential - Traditional building material leaders are expected to show significant long-term value, while new energy materials are likely to continue their growth [19] - Recommendations include companies like Western Cement, Huaxin Cement, and others that are positioned to benefit from improving infrastructure and real estate demand [19]

Core Viewpoint - The new materials industry in China is experiencing rapid growth driven by policy support, market demand, and technological innovation, with a projected total output value of 8.48 trillion yuan in 2024, maintaining double-digit growth for 14 consecutive years [1][3][20]. Group 1: Industry Definition and Classification - New materials refer to recently developed or developing structural and functional materials with superior properties. They can be classified into structural materials and functional materials based on their usage, and further categorized into four types: metal materials, inorganic non-metal materials, organic polymer materials, and advanced composite materials [1]. Group 2: Current Development Status - The new materials industry has expanded significantly, with the government focusing on electronic information materials, aerospace materials, new energy materials, and environmentally friendly materials. National high-tech industrial bases for new materials have been established in seven cities [3][5]. Group 3: Market Size and Structure - In 2024, the chemical new materials market is expected to account for approximately 22.08% of the total new materials market in China, while battery new materials will represent about 6.66%. By 2025, these figures are projected to be 21.75% and 6.97%, respectively [7]. Group 4: Competitive Landscape - Major companies in the new materials sector include Lens Technology, Antai Technology, China National Materials, and others, which are enhancing their international competitiveness through technological innovation and market expansion [12][16]. Group 5: Development Trends - The demand for new materials is increasing due to the rapid development of downstream industries such as information technology and new energy. The industry is transitioning towards low-carbon and green development, supported by significant technological advancements [20][23].

Company Status - The market is focusing on the company's high-end electronic yarn products, highlighting its leading capabilities in technology reserves and production line configuration compared to peers [1] - The demand for Low-Dk electronic fabrics is expected to grow due to AI-driven upgrades in the PCB industry, while low-expansion yarn demand is anticipated to increase driven by advanced chip packaging [1] Product Commentary - Low-expansion yarn is crucial for high-precision and high-heat dissipation electronic components, significantly impacting the reliability and lifespan of packaging [2] - The demand for low-expansion yarn is catalyzed by the increase in CoWoS packaging capacity, which requires efficient heat dissipation designs [2] - Major companies like Nvidia, Broadcom, Google, and Microsoft are adopting low-expansion yarn, with domestic demand also rising [2] - According to SemiWiki, TSMC's CoWoS capacity is expected to reach 35,000-40,000 pieces/month in 2024, increasing to 65,000-75,000 pieces/month in 2025, and 90,000-110,000 pieces/month in 2026, which will directly boost low-expansion yarn demand [2] Industry Supply Dynamics - Unlike low-dielectric products, the supply of low-expansion products is limited, with Nitto Denko's T-glass becoming the industry standard [3] - Current production capacity is insufficient to meet downstream demand, with existing suppliers like Zhongcai Technology and Honghe Technology facing challenges in expanding capacity [3] - Zhongcai Technology plans to invest 1.4 billion yuan in a project to produce 35 million meters of specialty fiberglass cloth, which will enable the production of high-value-added products including second-generation electronic fabrics and low-expansion yarn [3] Profit Forecast and Valuation - The company's EPS forecasts for 2025 and 2026 are 0.96 yuan and 1.15 yuan, respectively, with current stock prices corresponding to P/E ratios of 17x and 14x for those years [4] - The company maintains an outperform rating with a target price of 17.7 yuan, implying a 7% upside potential based on P/E ratios of 18x and 15x for 2025 and 2026 [4]

1. Report Industry Investment Rating - Most of the covered companies have investment ratings such as "Buy" and "Add", including China National Building Material Co., Ltd., China National Steel & Machinery Corporation, etc. [21][24] 2. Core Viewpoints - Suggest paying attention to investment opportunities related to the Belt and Road Initiative, including four major international engineering companies and companies like Shanghai Harbor and Keda Manufacturing. [3][18] - Although the real - estate market is on the path of stabilizing after a series of policies since the December 2024 Politburo meeting, it still needs to be consolidated in April, and continuous policy support is expected. [3] - Currently, it is recommended to focus on companies such as Honglu Steel Structure, China Jushi, etc., due to factors like improved foreign trade environment, expected increase in downstream demand, and product price increases. [3] 3. Summary by Directory 3.1 Week - Special Topic: Focus on Belt and Road - Related Investment Opportunities - The Belt and Road Initiative aims to achieve infrastructure connectivity and sustainable development among countries along the routes. After more than a decade of construction, the infrastructure connectivity among countries along the routes has taken shape, with significant growth in railway transportation and an increase in the proportion of trade with BRI countries in China's total foreign trade. [3][5][8] - Investment opportunities related to the Belt and Road Initiative are suggested, including four major international engineering companies (Northern International, Sinomach, Sinoma International, and Sino - steel International) and companies like Shanghai Harbor and Keda Manufacturing. [3][18] 3.2 Profit Forecasts and Valuations of Main Covered Companies - The report provides profit forecasts and valuations for multiple companies from 2024 to 2027, including EPS, PE, PB, etc., and gives investment ratings such as "Buy" and "Add". [21][24] 3.3 Weekly Market Review - In the weekly market, the building and building materials industries showed different degrees of decline. Among them, the building index and building materials index both decreased, and different sub - sectors also had varying performance. [28][30][32] - Infrastructure public REITs also had different price fluctuations, with an average weekly increase of 1.73%, a monthly increase of 4.23%, and significant increases in the year - to - date and since IPO. [36][37] 3.4 Aggregate Data Tracking - In the real - estate market, data on new construction, construction, completion, and sales areas showed different trends. In addition, data on land transactions, real - estate transactions, social financing, and infrastructure investment are also provided. [39][48][58] - The new - signed contract data of eight major construction central enterprises from 2022Q1 to 2025Q1 are presented, showing different growth rates in different quarters. [87] 3.5 High - Frequency Data Tracking - High - frequency data on various building materials such as cement, glass, photovoltaic glass, fiberglass, carbon fiber, and magnesium sand are provided, including price, production, inventory, etc. [99][102][110] - Data on upstream raw material prices and physical workloads are also included, such as waste paper, PVC, HDPE prices, and high - altitude machine rental rates, excavator working hours, etc. [148][156]

证券代码：002080 证券简称：中材科技 公告编号：2025－025 中材科技股份有限公司 2024 年年度权益分派实施公告 本公司及董事会全体成员保证信息披露的内容真实、准确和完整，没有 虚假记载、误导性陈述或者重大遗漏。 公司 2024 年年度权益分派方案为：以公司现有总股本 1,678,123,584 股为基 数，向全体股东每 10 股派 2.250000 元人民币现金（含税；扣税后，通过深股通 持有股份的香港市场投资者、境外机构（含 QFII、RQFII）以及持有首发前限售 股的个人和证券投资基金每 10 股派 2.025000 元；持有首发后限售股、股权激励 限售股及无限售流通股的个人股息红利税实行差别化税率征收，本公司暂不扣缴 个人所得税，待个人转让股票时，根据其持股期限计算应纳税额【注】；持有首 发后限售股、股权激励限售股及无限售流通股的证券投资基金所涉红利税，对香 港投资者持有基金份额部分按 10%征收，对内地投资者持有基金份额部分实行差 别化税率征收）。 【注：根据先进先出的原则，以投资者证券账户为单位计算持股期限，持股 1 个月（含 1 个月）以内，每 10 股补缴税款 0.450000 ...

长江证券： 中材科技被低估的全球稀缺龙头，建议买入。 ...

Investment Rating - The report maintains an "Overweight" rating for the construction and building materials industry [6] Core Insights - The report highlights a recovery in building materials retail, with expectations for the impact of policy implementation to support demand in the construction sector [1][2] - Investment in infrastructure, real estate, and manufacturing has shown mixed results, with infrastructure investment continuing to rise while real estate and manufacturing investments have declined [1] - The report emphasizes the importance of recent monetary policy measures, including interest rate cuts and structural monetary policy tools, to stimulate domestic demand [1] Summary by Sections Real Estate and Construction - From January to April 2025, real estate sales and new construction starts saw a reduction in their year-on-year decline, with sales down by 2.8% and new starts down by 23.8% [2] - The report notes that the retail sales of construction and decoration materials reached 53 billion yuan, showing a year-on-year increase of 2.3% [2] Cement Industry - Cement production from January to April 2025 was 495 million tons, reflecting a year-on-year decrease of 2.8% [3] - The average cement price in April was 398 yuan per ton, which is a 9.6% increase year-on-year [3] - The report indicates that the average cement shipment rate was 48.3%, with a slight increase from the previous month [3] Glass Industry - The flat glass production from January to April 2025 was 319 million weight cases, down 4.8% year-on-year [4] - The average price of float glass in April was 71 yuan per weight case, showing a slight month-on-month increase [4] - The report notes an increase in inventory levels for photovoltaic glass, indicating a potential oversupply situation [4] Recommended Stocks - The report recommends several stocks in the construction and building materials sector, including: - Sichuan Road and Bridge (600039 CH) with a target price of 11.03 yuan - China National Materials (600970 CH) with a target price of 13.04 yuan - China National Chemical (601117 CH) with a target price of 9.03 yuan - Huaneng Water Cement (6655 HK) with a target price of 11.26 HKD [10][29]

Summary of Conference Call on Zhongcai Technology Industry Overview - The demand for specialty glass fiber materials is surging due to advancements in AI technology, particularly in high-end hardware like NVIDIA's GB200 and M8-grade copper-clad laminates, which are essential for data centers and 800G switch upgrades. The Ethernet switch market is growing faster than computing power, creating strong demand for low dielectric and low expansion materials [2][7]. Company Insights: Zhongcai Technology - Zhongcai Technology is positioned as a leading player in the specialty glass fiber sector, focusing on low dielectric electronic cloth, low expansion fiber cloth, and quartz fiber cloth. These materials are crucial for AI hardware applications, including mobile chips, servers, and switches [4]. - The company is expected to benefit from the unexpected boom in specialty glass fiber cloth, with projections indicating an increase in average prices by 2026 due to a shift towards high-margin products like second-generation electronic cloth and low expansion materials [2][8]. - Zhongcai Technology's production capacity is anticipated to reach 20 million meters by 2026, with a tight market supply expected to persist unless new entrants emerge [5][16]. Competitive Landscape - The global supply of specialty glass fiber materials is limited, with only a few suppliers for low dielectric electronic cloth and low expansion fiber cloth. Key players include Nitto Denko, AGY, and Taishan Glass Fiber [6][18]. - Nitto Denko holds a significant market share of approximately 30%, followed by AGY and Zhongcai Technology, which is the second company to master low expansion coefficient technology [17][18]. Market Demand and Applications - The demand for low expansion fiber cloth is driven by advanced packaging techniques like TSMC's CoWoS, which are increasingly used in AI chips and high-end mobile applications, such as the upcoming iPhone 18 [12][13]. - The automotive sector is also showing rapid growth in demand for low expansion fiber cloth due to advancements in autonomous driving technologies [14]. Future Performance Expectations - Zhongcai Technology's future performance is expected to be robust, with significant contributions from its specialty glass fiber business. The company is projected to achieve high growth rates in 2025, driven by increased demand for AI server applications and IC substrates [20][22]. - The company is also involved in wind power blade and diaphragm businesses, which are performing well, further enhancing its investment appeal [22]. Investment Outlook - The estimated market value of Zhongcai Technology is projected to be around 25 billion, based on a 1.2x price-to-book ratio, with significant contributions from specialty glass cloth. The company is expected to achieve high growth rates in 2025, benefiting from its entry into the semiconductor supply chain [23]. Conclusion - Zhongcai Technology is positioned for significant growth in the specialty glass fiber market, driven by technological advancements in AI and strong demand across various applications. The company's unique position and expected performance make it a valuable investment opportunity in the current market landscape [22][23].

Summary of Conference Call Records Industry Overview - The electronic fiberglass cloth industry is experiencing increased demand driven by AI servers and high-bandwidth switches, particularly in the context of Low-K fiberglass cloth applications in levels 6 and above, with specific usage depending on customer product design and performance requirements [1][3] - The current market for electronic fiberglass cloth is primarily focused on first-generation Low-K products, while second-generation products are used in niche markets. The PCB and CCL scrap issues have led to supply tightness, resulting in a high level of industry prosperity, with order visibility extending until the end of June [1][6] Key Insights - The demand for electronic fiberglass cloth in B200 chips and above is complex, with significant increases in the use of level 8 materials, but not all applications utilize second-generation Low-K materials, only specific scenarios like NVLink Sweet Spot boards and Arista 800G switches [1][5] - The upgrade of CACCO levels is not directly correlated with the use of electronic fiberglass cloth, as it requires analysis based on specific application scenarios, such as AI servers and GPU peripheral services [1][7] - Johnson & Johnson's sustained orders provide stable demand for the industry, with increased computational power expanding the application space for upstream Low-K materials. Domestic manufacturers are improving quality through mass production, giving them an advantage in domestic substitution [1][8] Company-Specific Developments - China National Materials Technology (中材科技) has made significant progress in the Low-K materials sector, with monthly shipments from its subsidiary Taibo increasing from 1 million meters to nearly 2 million meters, with expectations to reach 15 million meters in Q2 [4][9] - The company has reserves of specialty fiberglass products, such as quartz fiberglass cloth and low-expansion fiberglass cloth, which are expected to contribute to performance growth by 2026, with quarterly profit contributions from specialty fiberglass materials projected to rise from 30 million to 50 million [4][10] - Overall performance expectations for China National Materials Technology in 2025 are optimistic, with updated guidance indicating total performance around 1.8 billion, driven by significant growth in specialty fiberglass materials and recovery in wind power and military sectors [11][12] Future Outlook - In the coming years, China National Materials Technology is expected to achieve steady growth across multiple sectors, with an anticipated profit contribution of approximately 380-400 million by 2026. The company will continue to innovate through new product iterations to maintain competitiveness [12] - The electronic substrate sector is expected to see significant growth, supported by high demand for CACCO and PCB, making it one of the best-performing segments outside of wind power [13][14]

Group 1 - The central enterprise energy ETF has a turnover rate of 2.38% and a transaction volume of 3.0688 million yuan, with an average daily transaction volume of 5.4144 million yuan over the past week as of May 16 [2] - The index tracked by the ETF, the China Securities National New Central Enterprise Modern Energy Index, is currently at a historical low valuation with a price-to-book ratio (PB) of 1.41, which is below 95.4% of the time over the past year, indicating a strong valuation cost-effectiveness [2] - The top ten weighted stocks in the index, including Changjiang Electric Power and China Nuclear Power, account for a total of 51.18% of the index as of April 30, 2025 [2] Group 2 - The A-share market has historically undervalued low-covariance assets due to insufficient risk awareness, but there is a growing recognition of the importance of the "return-risk ratio" amid increased market volatility, leading to a valuation uplift for utility and other low-covariance assets [2] - Huayuan Securities recommends selecting hydropower with strong risk resistance and undervalued quality thermal power benefiting from declining coal prices, while also suggesting a preference for undervalued quality wind power operators despite uncertainties in the new energy market under Document No. 136 [2]