Core Viewpoint - Changhai Co., Ltd. confirmed that Changzhou Tianma Group Co., Ltd. is a wholly-owned subsidiary, specializing in high-performance fiberglass and related products, which extends the company's main business chain [2] Group 1 - Changzhou Tianma Group produces unsaturated polyester resins and auxiliary materials, fiberglass adhesives, and composite materials [2] - The subsidiary plays a crucial role in the company's core business operations [2]

Investment Rating - The report maintains an "Accumulate" rating for the construction materials industry [1] Core Views - The macroeconomic data is weakening, and there are expectations for policy support to stabilize the market [1] - The construction materials sector has shown a slight increase of 0.80% this week, outperforming the CSI 300 and Wind All A indices [5] - The report highlights the potential for recovery in the glass fiber industry and suggests focusing on companies benefiting from price increases and domestic demand recovery [5][6] Summary by Sections 1. Bulk Construction Materials Fundamentals and High-Frequency Data - **Cement**: The national average price for high-standard cement is 351.2 RMB/ton, down 0.5 RMB/ton from last week and down 74.3 RMB/ton from the same period in 2024. The average cement inventory ratio is 69.9%, up 0.3 percentage points from last week [5][12][21] - **Glass**: The average price for float glass is 1197.2 RMB/ton, down 5.5 RMB/ton from last week and down 192.1 RMB/ton from 2024. The inventory of float glass is 6016 million heavy boxes, down 184 million from last week [5][47][50] - **Glass Fiber**: The market for glass fiber remains stable, with prices for 2400tex alkali-free yarn around 3250-3700 RMB/ton, showing no significant changes from the previous week [5][6] 2. Industry Dynamics Tracking - The report notes a decline in October export data and a further weakening in the real estate sector, leading to expectations for supportive domestic demand policies from the upcoming Central Economic Work Conference [5] - Recommendations include focusing on companies in the glass fiber sector, such as China Jushi and Zhongcai Technology, and those in the home decoration sector, like Hanhai Group and Ark Home [5] 3. Weekly Market Review and Sector Valuation - The construction materials sector's performance is compared to the broader market, with a slight underperformance noted against the CSI 300 index [5] - The report emphasizes the importance of industry policies and the potential for valuation recovery as the market stabilizes [5][6]

Market Overview - The glass and fiberglass sector increased by 1.72% compared to the previous trading day, with Zhongcai Technology leading the gains [1] - The Shanghai Composite Index closed at 4007.76, up 0.97%, while the Shenzhen Component Index closed at 13452.42, up 1.73% [1] Stock Performance - Zhongcai Technology (002080) closed at 32.63, up 4.92% with a trading volume of 332,700 shares and a transaction value of 1.07 billion [1] - Honghe Technology (603256) closed at 33.17, up 2.57% with a trading volume of 257,900 shares and a transaction value of 847 million [1] - Jinjing Technology (600586) closed at 6.05, up 1.85% with a trading volume of 1,006,100 shares and a transaction value of 609 million [1] - International Composite (301526) closed at 6.07, up 1.68% with a trading volume of 497,400 shares and a transaction value of 300 million [1] - Other notable stocks include Changhai Co. (300196) at 14.57, up 1.18%, and China Jushi (600176) at 15.90, up 0.95% [1] Capital Flow - The glass and fiberglass sector saw a net inflow of 177 million from institutional investors, while retail investors experienced a net outflow of 1.27 billion [2] - The main capital flow data indicates that Zhongcai Technology had a net inflow of 48.60 million from institutional investors, while retail investors had a net outflow of 75.64 million [3] - Honghe Technology experienced a net outflow of 89.72 million from institutional investors, indicating a shift in investor sentiment [3]

Core Insights - The glass fiber industry has strong connections between upstream and downstream sectors, with upstream involving raw materials like ores and chemicals, midstream focusing on manufacturing, and downstream applications in transportation, construction, electronics, and emerging industries [1][4]. Industry Overview - Major listed companies in the glass fiber industry include China Jushi (600176), China National Materials (002080), Changhai Co. (300196), International Composites (301526), Shandong Glass Fiber (605006), Honghe Technology (603256), and Jiuding New Materials (000834) [1][2]. - The industry chain includes upstream suppliers such as quartz companies and chemical groups, midstream manufacturers, and downstream users [2]. Regional Distribution - Glass fiber production is concentrated in Jiangsu, Zhejiang, and Shandong provinces, with Jiangsu hosting many manufacturers like Changhai Co. and China National Materials, while the leading company, China Jushi, is located in Zhejiang [4]. Financial Performance - In 2024, China Jushi and China National Materials are expected to lead in revenue, with China Jushi projected to generate 15.48 billion yuan and a gross margin of 24.34% [6][7]. - Other companies like Jiuding New Materials and Changhai Co. also show strong gross margins above 20% [6][7]. Investment Trends - Since 2022, companies in the glass fiber sector have been expanding through subsidiaries, investment funds, and capital increases [8]. - Notable investments include International Composites planning to invest approximately 230 million yuan in upgrading production lines, and China Jushi investing around 951 million yuan for a new production line [10].

Market Overview - The glass and fiberglass sector experienced a decline of 1.58% on November 4, with Honghe Technology leading the drop [1] - The Shanghai Composite Index closed at 3960.19, down 0.41%, while the Shenzhen Component Index closed at 13175.22, down 1.71% [1] Stock Performance - Key stocks in the glass and fiberglass sector showed varied performance, with Jin Jing Technology closing at 5.66, up 0.35%, and Honghe Technology closing at 32.69, down 2.97% [1][2] - The trading volume and turnover for major stocks included Jin Jing Technology with 1.3483 million shares traded and a turnover of 770 million yuan, while Honghe Technology had 179,700 shares traded with a turnover of 596 million yuan [1][2] Capital Flow - The glass and fiberglass sector saw a net outflow of 331 million yuan from institutional investors, while retail investors had a net inflow of 399 million yuan [2] - The capital flow for individual stocks indicated that major stocks like Honghe Technology and Jiu Ding New Materials experienced significant net outflows from institutional and speculative funds [3]

Core Viewpoint - Changhai Co., Ltd. has experienced a stock price decline of 2.06% on November 4, with a current price of 14.24 CNY per share, despite a year-to-date increase of 34.42% [1] Financial Performance - For the period from January to September 2025, Changhai Co., Ltd. achieved a revenue of 2.359 billion CNY, representing a year-on-year growth of 24.02%, and a net profit attributable to shareholders of 257 million CNY, up 27.16% year-on-year [2] - The company has cumulatively distributed 711 million CNY in dividends since its A-share listing, with 264 million CNY distributed over the past three years [3] Stock Market Activity - As of November 4, the stock has seen a trading volume of 61.54 million CNY and a turnover rate of 1.74%, with a total market capitalization of 5.82 billion CNY [1] - The stock has been on the "龙虎榜" (a list of stocks with significant trading activity) once this year, with a net buy of 66.83 million CNY on July 1 [1] Shareholder Information - As of September 30, 2025, the number of shareholders increased by 38.97% to 22,200, while the average circulating shares per person decreased by 28.04% to 11,089 shares [2] - Notably, two funds, 嘉实领先优势混合A and 招商量化精选股票发起式A, have exited the top ten circulating shareholders [3] Business Overview - Changhai Co., Ltd. specializes in the research, production, and sales of fiberglass products and composite materials, with 76.78% of its revenue coming from fiberglass and related products, 21.78% from chemical products, and 1.44% from fiberglass reinforced plastics [1]

Industry Investment Rating - The investment rating for the construction materials industry is "Outperform the Market" and is maintained [1] Core Views - The construction materials industry is currently at a cyclical bottom in terms of profitability, with leading companies in various segments performing in line with expectations. For instance, China Jushi in the fiberglass sector has seen a significant year-on-year improvement in profitability, while companies like Rabbit Baby have also reported substantial profit improvements due to investment income. Other leading companies such as Oriental Yuhong, Beixin Building Materials, Qibin Group, and Jianlang Hardware are also showing signs of bottoming out in their fundamentals. It is anticipated that stock prices may break out of the bottom range under the influence of policy catalysts and market style shifts [4][5] Summary by Relevant Sections Cement - Demand for cement has shown a slight month-on-month improvement, primarily due to infrastructure projects and better weather conditions, although year-on-year demand remains down. The overall demand is still in a weak recovery phase, influenced by weather disruptions and the pace of demand release. In September 2025, the monthly cement production was 154 million tons, down 8.6% year-on-year [5][10] Glass - The glass industry is experiencing a continuous decline in demand due to the impact of real estate. Short-term demand during the traditional peak season has shown limited improvement, and inventory levels among intermediaries remain relatively high. The supply-demand imbalance persists, with limited improvement in downstream terminal demand. The industry is expected to face increased environmental requirements and costs, accelerating the pace of cold repairs [5][17] Fiberglass - The fiberglass sector is witnessing a price recovery, with price increases of 5%-10% reported. The demand for electronic yarns is driven by the AI industry, leading to a significant increase in both volume and price. The demand is expected to continue growing alongside AI developments [6] Consumer Building Materials - The profitability of the consumer building materials sector has reached a bottom, with prices having no further downward space after years of competition. The sector is strongly advocating for price increases and profitability improvements, with several categories like waterproofing, coatings, and gypsum boards issuing price increase notices this year. A recovery in profitability is anticipated for leading companies in the second half of the year [6] Recent Company Announcements - Conch Cement reported Q3 revenue of 20 billion yuan, down 11.4% year-on-year, but net profit increased by 3.4% year-on-year to 1.94 billion yuan, benefiting from cost reductions and improved gross margins. Q3 revenue for Qibin Group was 4.39 billion yuan, up 18.9% year-on-year, with a net profit of 20 million yuan, marking a return to profitability [19][20][22]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance over the next six months [4][6]. Core Views - The company has shown a profit growth of 4.18% year-on-year in Q3, with a net profit of 0.84 billion yuan [1]. - For the first three quarters of 2025, the company achieved revenues and net profits of 2.36 billion yuan and 0.257 billion yuan, respectively, representing year-on-year increases of 24.02% and 27.16% [1]. - The report highlights the potential for continued revenue growth due to recovering downstream demand and planned capacity expansions [2]. Financial Performance - The overall gross margin for the first three quarters of 2025 was 23.69%, an increase of 0.30 percentage points year-on-year [3]. - The company reported a net profit margin of 10.90%, reflecting a year-on-year increase of 0.28 percentage points [3]. - The operating cash flow for the company was 2.07 billion yuan, an increase of 0.54 billion yuan year-on-year, indicating strong cash flow management [3]. Revenue and Profit Forecast - The report has adjusted the net profit forecasts for 2025 to 3.7 billion yuan, down from a previous estimate of 4.2 billion yuan, while maintaining a positive outlook for future growth [4]. - The projected revenue for 2025 is 3.01 billion yuan, with a growth rate of 13.09% [5]. Market Position - The company operates in the building materials and glass fiber industry, with a current stock price of 14.8 yuan [6]. - The report notes that the company's stock is expected to outperform the market, with a target price not specified [6].

Investment Rating - The report maintains an "Overweight" rating for the building materials industry [1] Core Views - The global trade situation is expected to stabilize over the next year, with a focus on exports [1] - The construction materials sector has shown a positive performance, with a weekly increase of 1.29%, outperforming the Shanghai and Shenzhen 300 Index [4] - The report highlights the importance of the U.S.-China trade agreement in shaping future trade stability [4] Summary by Sections 1. Bulk Building Materials Fundamentals and High-Frequency Data - **Cement**: The national average price for high-standard cement is 351.7 RMB/ton, up by 3.5 RMB/ton from last week, but down by 65.2 RMB/ton compared to the same period in 2024. The average cement inventory ratio is 69.6%, up by 1.8 percentage points from last week [13][14][22] - **Glass**: The average price for float glass is 1202.7 RMB/ton, down by 41.0 RMB/ton from last week and down by 126.0 RMB/ton year-on-year. The inventory of float glass stands at 62 million heavy boxes, down by 470,000 boxes from last week [48][50] - **Fiberglass**: The market price for non-alkali fiberglass remains stable, with mainstream prices ranging from 3250 to 3700 RMB/ton [46] 2. Industry Dynamics Tracking - The report notes a rebound in new orders and business activity expectations in the construction sector, linked to recent policy financial support [4] - The report recommends focusing on export-oriented industries, particularly in the fiberglass sector, and companies involved in home decoration consumption [4] 3. Weekly Market Review and Sector Valuation - The report indicates that the cement market is experiencing a slight increase in prices, particularly in the southwestern region, while demand is expected to weaken as northern regions enter winter [13][14] - The report emphasizes the importance of maintaining supply discipline within the cement industry, which is expected to lead to better profitability compared to the previous year [4][13]

Core Points - Longhai Co., Ltd. experienced a stock price decline of 2.03% on November 3, with a trading price of 14.50 yuan per share and a market capitalization of 5.926 billion yuan [1] - The company has seen a year-to-date stock price increase of 36.87%, but has declined by 3.65% in the last five trading days [1][2] - Longhai Co., Ltd. operates in the building materials sector, specifically in glass fiber manufacturing, with a revenue composition of 76.78% from glass fiber products, 21.78% from chemical products, and 1.44% from fiberglass products [1][2] Financial Performance - For the period from January to September 2025, Longhai Co., Ltd. reported a revenue of 2.359 billion yuan, representing a year-on-year growth of 24.02%, and a net profit attributable to shareholders of 257 million yuan, up 27.16% year-on-year [2] - The company has distributed a total of 711 million yuan in dividends since its A-share listing, with 264 million yuan distributed over the past three years [3] Shareholder Information - As of September 30, 2025, Longhai Co., Ltd. had 22,200 shareholders, an increase of 38.97% from the previous period, with an average of 11,089 circulating shares per shareholder, a decrease of 28.04% [2] - Notably, two funds, 嘉实领先优势混合A and 招商量化精选股票发起式A, have exited the list of the top ten circulating shareholders [3]