Investment Rating - The report assigns an "Accumulate" rating for the building materials industry [5] Core Insights - The report emphasizes the expectation of price increases post-Spring Festival and the potential catalyst from the real estate sector. It highlights that the consumption building materials sector may begin to show fundamentals independent of real estate from 2025-2026, with a focus on the resilience of the real estate market after the Spring Festival [2][7] - The report recommends leading companies in the consumption building materials sector that have independent growth logic and sufficient dividend valuation support, particularly in the waterproof materials sub-sector [5][7] Summary by Sections Building Materials Industry Investment Strategy - The consumption building materials sector is anticipated to benefit from potential macroeconomic improvements, with a focus on the resilience of the real estate market post-Spring Festival. The report highlights the importance of observing second-hand housing transactions for signs of market recovery [7] - Recommended companies include Oriental Yuhong, Beixin Building Materials, Weixing New Materials, and others that are expected to perform well due to their growth strategies and market positions [7] Market Review - From February 2 to February 6, 2026, the building materials sector increased by 0.70%, with specific segments like glass manufacturing rising by 5.32% [10] - The report notes significant individual stock movements, with companies like Hanjian Heshan and Jinjing Technology showing notable weekly gains [17] Cement Industry - The national cement market price decreased by 1% week-on-week, with significant price drops in regions like Henan and Hubei. The average shipment rate for cement companies fell by approximately 8 percentage points [24][25] - The report anticipates a stabilization in cement prices as the market enters a holiday period, with a focus on the execution of production restrictions in 2026 [7][24] Glass Industry - The average price of domestic float glass increased to 1154.49 RMB/ton, reflecting a week-on-week rise of 9.69 RMB/ton. However, demand is expected to weaken as downstream processing plants shut down for the holiday [42] - The report recommends leading companies in the glass sector, including Fuyao Glass and Xinyi Glass, due to their strong market positions and dividend yields [42][43] Fiberglass Industry - The report indicates that the fiberglass market is experiencing price increases, particularly in the electronic yarn segment, driven by tight supply and steady demand [55] - Recommended companies in this sector include China Jushi and Zhongcai Technology, which are expected to benefit from structural demand upgrades [55]

Investment Rating - The report maintains a "Buy" rating for key companies in the building materials sector, indicating an expected relative performance increase of over 15% in the next 6-12 months [6][110]. Core Insights - The building materials industry is at a turning point, with both demand and valuation expected to improve. The real estate sector is anticipated to stabilize, leading to a recovery in building materials demand. The report highlights that new construction starts in 2025 are projected to decline by 70% compared to 2021, with completions down by 40% and new home sales down by 50% [9][8]. - Rising prices of upstream raw materials such as asphalt, polypropylene, and polyethylene are expected to drive up building material prices, benefiting companies with pricing power [9][8]. - The report recommends several companies, including Beixin Building Materials, Oriental Yuhong, and Sanhe Tree, while suggesting to pay attention to companies like Rabbit Baby and China Liansu [9][8]. Summary by Sections Market Overview - The building materials sector is currently underweighted, with a configuration ratio of 0.72% as of Q4 2025, which is significantly lower than the historical average since 2010 [8]. - The cement and glass sectors are noted to be at low valuation levels, with the cement manufacturing PB at the 16th percentile and glass manufacturing PB also at the 16th percentile since 2010 [8]. Key Company Recommendations - Recommended companies include: - Beixin Building Materials: EPS forecasted to increase from 2.1 in 2024 to 3.5 in 2027, with a PE ratio decreasing from 13.4 to 8.2 [6]. - Conch Cement: EPS forecasted to rise from 1.5 in 2024 to 2.2 in 2027, with a PE ratio decreasing from 17.3 to 11.6 [6]. - China Jushi: EPS expected to grow from 0.6 in 2024 to 1.2 in 2027, with a PE ratio decreasing from 36.1 to 18.6 [6]. - Other companies include Weixing New Materials, Sanhe Tree, and Huaxin Cement, all rated as "Buy" or "Increase" [6]. Industry Trends - The report notes a significant increase in market share for consumer building materials over the past few years, with profitability in segments like waterproofing and piping at a low point, suggesting potential for recovery [9][8]. - The cement sector is expected to see a gradual recovery in profitability, with a current national cement market price decrease of 1% and a notable drop in average shipment rates [36][9]. - The float glass sector is experiencing a supply-side adjustment, with production capacity at a five-year low, indicating potential for price recovery [9][8]. Emerging Opportunities - The report highlights opportunities in overseas markets, particularly in Africa, Central Asia, and Southeast Asia, where rising populations and urbanization rates are creating demand for building materials [9][8]. - The electronic fabric market is also noted for its upward price trend due to supply constraints, with significant price increases observed in recent weeks [9][8]. Conclusion - The building materials industry is positioned for a recovery phase, driven by stabilization in the real estate market and rising raw material prices. The report emphasizes the importance of focusing on companies with strong pricing power and market positioning to capitalize on these trends [9][8].

Group 1: Construction Materials - The completion end of construction materials is expected to reach a long-term turning point in 2026, driven by factors such as a narrowing decline in new housing completions, improving second-hand housing transaction volumes, and a significant increase in the stock of homes entering the renovation cycle [1][10][20] - The demand structure has been significantly impacted by economic pressures, leading to a delay in renovation needs, but positive changes are anticipated in the future, with a dual positive shift expected in the industry due to continuous supply contraction [1][21][33] - The glass supply is notably shrinking, approaching a supply-demand balance, with a focus on price elasticity in 2026, highlighting the importance of companies like Qibin Group [1][43] Group 2: Construction Start Materials - Profit recovery in the construction start materials sector is underway, but further policy support is needed for a sustained trend. The demand for construction starts is primarily driven by new real estate projects and infrastructure [2][14] - The cement industry has seen a significant exit of over 160 million tons of actual capacity, leading to a relatively stable price environment and improved profit margins for companies with cost advantages, such as Conch Cement and Huaxin Cement [2][33] Group 3: New Materials - The report emphasizes the potential of electronic yarn, carbon fiber, and TCO glass. The electronic yarn sector is experiencing price increases due to high demand driven by the AI industry [3][17] - Carbon fiber demand is expected to grow rapidly, driven by the wind energy sector and aerospace applications, with companies like Zhongfu Shenying being highlighted for their growth potential [3][20] - TCO glass is entering a commercial application phase, with significant production capacity planned by companies such as BOE Technology and JinkoSolar, indicating a strong future demand for this material [3][23] Group 4: Key Investment Targets - Key investment targets include companies like Sankeshu (603737.SH), Weixing New Materials (002372.SZ), and Rabbit Baby (002043.SZ), with projected earnings per share (EPS) growth and favorable price-to-earnings (PE) ratios indicating potential for investment [6][7] - The report maintains a buy rating for companies like China Jushi (600176.SH) and Zhongfu Shenying (688295.SH), reflecting confidence in their growth prospects in the new materials sector [6][7]

Core Insights - The report indicates that the price of ordinary electronic cloth has exceeded expectations, with significant price increases observed in recent months, suggesting a sustained high demand in the market [12][13] - Shanghai's initiative to purchase second-hand homes for rental purposes is expected to boost the supply of rental housing and stimulate the construction materials market [13][14] - The construction materials industry is currently at a historical valuation low, with potential for recovery as demand stabilizes and supply-side improvements take effect [23][25] Group 1: Price Trends and Market Dynamics - The price of ordinary electronic cloth has seen cumulative increases of 1-1.2 RMB/m due to supply-demand imbalances and rising copper prices, indicating a long-term bullish trend [12] - The Shanghai government has launched a program to acquire second-hand homes for rental purposes, focusing on small-sized units, which is anticipated to enhance the supply of rental properties and invigorate the construction materials sector [13] - Recent data shows a recovery in second-hand home transactions, with significant year-on-year increases, suggesting a potential rebound in the real estate market [14][15] Group 2: Industry Fundamentals and Company Performance - The construction materials sector is experiencing a bottoming out phase, with various sub-sectors like cement and fiberglass showing signs of recovery, supported by supply-side adjustments and improved market conditions [23][25] - The report highlights that leading companies in the consumer building materials segment are demonstrating resilience, with improved revenue growth rates compared to the overall market, indicating strong operational capabilities [29] - Cement prices have recently decreased by 1%, but the overall market is expected to stabilize as companies implement price control measures and benefit from lower coal costs [25][26] Group 3: Investment Opportunities - The report suggests focusing on leading companies in the consumer building materials sector, such as Three Trees, Rabbit Baby, and Oriental Yuhong, which are well-positioned to benefit from the ongoing market recovery [23][25] - In the cement industry, companies like Huaxin Cement and Conch Cement are highlighted as potential investment opportunities due to their strong market positions and historical performance [25][26] - The fiberglass sector is also noted for its growth potential, with leading firms like China Jushi and Zhongtai Technology expected to capitalize on increasing demand for high-end electronic cloth [26][28]

Group 1 - The company Zhejiang Weixing New Materials Co., Ltd. has signed an agreement to acquire 88.2557% of Beijing Songtian Cheng Technology Co., Ltd. for 110,739,201 RMB to enhance its product chain in municipal pipeline sectors such as gas and heating [2] - The acquisition aims to improve the company's system solution capabilities and accelerate the transformation of its municipal engineering business model [2] - The acquisition has been completed with the necessary changes in shareholder structure and business registration, making Beijing Songtian Cheng Technology Co., Ltd. a subsidiary of the company [2] Group 2 - The new shareholder structure shows that the company holds 88.2557% of the shares, while Lin Songyue holds 10% and Bian Xianhua holds 1.7443% [3] - The registered capital of Beijing Songtian Cheng Technology Co., Ltd. is 57.33 million RMB, and its main business involves the research, manufacturing, and sales of polyethylene valves for municipal gas and heating pipelines [2]

Core Viewpoint - Weixing New Materials (002372) has successfully acquired a controlling stake in Beijing Songtian Cheng Technology Co., Ltd., enhancing its business portfolio in the municipal pipeline sector [1] Group 1: Company Overview - As of February 3, 2026, Weixing New Materials closed at 11.95 yuan, up 0.59% from the previous trading day, with a total market capitalization of 19.025 billion yuan [1] - The stock opened at 11.87 yuan, reached a high of 12.03 yuan, and a low of 11.68 yuan, with a trading volume of 1.93 billion yuan and a turnover rate of 1.11% [1] Group 2: Acquisition Details - On January 22, 2026, Weixing New Materials signed a share transfer agreement to acquire 88.2557% of Beijing Songtian Cheng Technology Co., Ltd. for 110,739,201 yuan [1] - The acquisition has been completed with the necessary changes in shareholder registration, articles of association, and legal representative, and the company is now a subsidiary of Weixing New Materials [1] - Following the changes, Beijing Songtian Cheng's registered capital is now 57.33 million yuan, focusing on the research, manufacturing, and sales of polyethylene valves for gas and heating municipal pipelines [1]

证券代码：002372 证券简称：伟星新材 公告编号：2026-003 注册资本：5,733万元人民币 暨完成工商变更登记的公告 浙江伟星新型建材股份有限公司（以下简称"公司""伟星新材"）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、交易概述 为了进一步完善燃气、热力等市政管网领域的产品链，有效提升系统解决方案能力，加 速推动市政工程业务商业模式转型升级，持续提升综合竞争力，公司于 2026 年 1 月 22 日与 林松月、边仙花签署了《关于北京松田程科技有限公司之股权转让协议》，以自有资金 110,739,201 元人民币收购北京松田程科技有限公司（以下简称"松田程"）88.2557%的股 权。具体内容详见公司于 2026 年 1 月 24 日刊载在《证券时报》《中国证券报》《上海证券 报》《证券日报》和巨潮资讯网（www.cninfo.com.cn）的《公司关于收购北京松田程科技 有限公司控股权的公告》。 二、本次交易的进展情况 松田程已于近日办理完成股东变更、章程修改、法定代表人变更等相关工商变更登记手 续，并取得了北京市房山区市场监督管理局换发的《营 ...

Investment Rating - The report maintains an "Overweight" rating for the construction materials sector [4] Core Views - The real estate market in first-tier cities has shown strong performance, particularly in second-hand housing transactions, indicating a potential recovery in the sector [1][2] - Government debt issuance has significantly increased, with a total of 863.35 billion yuan in January 2026, reflecting a 204.3% month-on-month increase and a 54.8% year-on-year increase, which may alleviate fiscal pressure and accelerate municipal projects [1] - The glass manufacturing sector is approaching a supply-demand balance due to accelerated cold repairs, while photovoltaic glass companies are reducing production to ease supply tensions [1][3] - The cement industry is experiencing a demand bottoming process, with increased off-peak production efforts and a focus on regional demand recovery, particularly in areas like Tibet and Xinjiang [1][2] - The demand for fiberglass remains robust, driven by growth in wind energy and high-end applications, indicating structural investment opportunities [1][6] Summary by Sections Cement Industry Tracking - As of January 30, 2026, the national cement price index is 342.94 yuan/ton, down 0.69% week-on-week, with a total cement output of 2.278 million tons, a decrease of 4.27% [2][18] - The capacity utilization rate for cement clinker kilns is 45.19%, up 2.77 percentage points from the previous week, indicating a slight recovery in production [2][18] - The market is currently undergoing structural adjustments, with infrastructure remaining the main support but showing weak growth [2][18] Glass Industry Tracking - As of January 29, 2026, the average price of float glass is 1144.80 yuan/ton, reflecting a week-on-week increase of 0.53% [3][31] - Inventory levels have decreased, with a total of 49.27 million weight boxes, down 500,000 from the previous week [3][31] - Demand is expected to slow down as many small processing plants will shut down for the holiday, leading to a quieter market [3][31] Fiberglass Industry Tracking - The price of non-alkali roving remains stable, with demand primarily driven by essential purchases, while supply remains unchanged [6] - The average price of electronic yarn is stable, with expectations of price increases in high-end products due to ongoing demand [6] Carbon Fiber Industry Tracking - The carbon fiber price remains stable, with a weekly production of 2,369 tons and an operating rate of 76.28% [7] - The industry continues to face profitability challenges, with an average production cost of 113,300 yuan/ton and a negative gross margin [7] Consumer Building Materials - The consumer building materials sector is benefiting from the recovery in second-hand housing and renovation demand, with significant potential for market share growth [1][6]

Core Viewpoint - The company, Zhejiang Weixing New Materials Co., Ltd., held a conference call on January 27, 2026, to address investor inquiries regarding market demand, pricing strategies, acquisition matters, and business planning, with participation from 13 institutions including Citi and Fidelity International [1][2]. Market Demand - The current market demand remains weak, reflecting overall industry pressure and providing context for potential adjustments in the company's operational strategies [3]. Pricing Strategy for 2025 - The company aims to maintain a "three high positioning" (high quality, high service, high value) to stabilize its pricing system amidst ongoing industry price wars, focusing on enhancing product and service capabilities rather than engaging in pure price competition [4]. Acquisition of Songtian Cheng - The acquisition of Beijing Songtian Cheng Technology Co., Ltd. is intended to strengthen the company's municipal business competitiveness and expand its international market presence, leveraging Songtian Cheng's advanced technology and strong brand reputation in the valve sector [5]. 2026 Business Planning - The company's operational planning and targets for 2026 are still under discussion, with specific indicators to be disclosed in the 2025 annual report, indicating a cautious approach to future planning [6]. Waterproof and Water Purification Business - The waterproof business model is considered mature, with plans for increased market expansion, while the water purification business will undergo positioning adjustments to refine its business model [7]. Goodwill Provisioning - The company has previously made goodwill impairment provisions, including a full provision of 21.261 million yuan for Guangzhou Hexin and a partial provision of 52.7107 million yuan for Zhejiang Kairui, with decisions on future provisions to be based on accounting standards and auditor evaluations [8]. Dividend Policy - The company maintains a stable and transparent dividend policy, achieving an average dividend payout ratio of 70%-80% since its listing, with future distributions to be determined based on various factors [9][10]. Raw Material Prices - The company reports significant increases in copper prices, while polyethylene and polypropylene prices are experiencing low-level fluctuations, posing challenges for cost control [11]. Capital Expenditure - Annual capital expenditures are approximately 300 million yuan, primarily focused on production capacity expansion and smart transformation, which will enhance production efficiency [12]. Construction Business - The company plans to selectively choose client projects and increase efforts in non-residential sectors, aiming to reduce reliance on a single industry and mitigate operational risks [13].

Market Demand and Pricing Strategy - Current market demand remains weak, indicating a challenging environment for the company [2] - The company plans to maintain a "high-quality positioning" and "co-creation and win-win" philosophy to stabilize pricing amidst ongoing industry price wars in 2025 [2] Acquisition and Business Development - The acquisition of Beijing Songtian Cheng Technology Co., Ltd. aims to leverage its advanced technology and production capabilities in the gas and heating municipal pipeline sector, enhancing the company's competitive edge [2][3] - The company seeks to transition its municipal engineering business model from "selling individual products" to "selling integrated solutions" [3] Future Planning and Financials - The operational goals for 2026 are still under discussion, with specific indicators to be disclosed in the 2025 report [3] - The company has a stable and transparent dividend policy, maintaining an average payout ratio of 70-80% since its listing [3] Material Costs and Capital Expenditure - Significant price increases in copper have been noted, while polyethylene and polypropylene prices are experiencing low volatility [3] - Capital expenditures are primarily focused on expanding production facilities and upgrading equipment, averaging around 300 million yuan annually in recent years [3] Business Opportunities and Market Focus - The company will continue to prioritize customer and project selection, with an increased focus on expanding non-real estate business opportunities due to the lack of significant macroeconomic improvement [3]