Zhi Tong Cai Jing·2025-08-28 08:07Group 1 - The construction of the New Tibet Railway is expected to significantly boost regional cement demand, with an estimated need for 3 million tons of cement over ten years, translating to an average annual demand of 300,000 tons [1] - The railway's impact on regional economic vitality is anticipated to stimulate infrastructure upgrades and construction demand, further supporting cement consumption [2] - The market may underestimate the long-term profit elasticity for regional cement companies due to the railway's construction and subsequent infrastructure development [3] Group 2 - Local cement companies, particularly in southern Xinjiang, are expected to benefit significantly from the release of demand, as the market is relatively insulated from external competition [3] - Qing Song Jian Hua, a leading cement producer in southern Xinjiang, has a production capacity of 15 million tons and a current utilization rate of only 54%, indicating potential for growth [3] - A hypothetical increase of 50 yuan per ton in cement prices could lead to a net profit increase of approximately 300 million yuan for Qing Song Jian Hua, highlighting the importance of price in addition to volume for regional cement companies [3]