建筑材料行业投资策略周报：化债+内需，板块持续催化

Investment Rating - The industry investment rating is "Hold" [1] Core Viewpoints - The report highlights a significant increase in local government debt limits, with an additional CNY 6 trillion allocated for debt replacement, which is expected to enhance infrastructure demand and improve receivables collection for construction companies [2][19] - The construction materials sector is anticipated to benefit from increased fiscal stimulus and demand across various segments, including infrastructure, real estate, and home decoration [20] - The cement prices have shown a continuous upward trend, with the national average price reaching CNY 426 per ton, reflecting a year-on-year increase of 51.5% [2][19] - The report identifies strong operational resilience among leading companies in the consumer building materials segment, despite ongoing market pressures [2][19] Summary by Sections 1. Debt Relief and Domestic Demand - The report discusses the approval of a plan to replace CNY 6 trillion in hidden local government debt, which will be implemented over three years, with CNY 2 trillion allocated annually from 2024 to 2026 [2][19] - This initiative is expected to alleviate financial pressures on local governments and stimulate infrastructure projects, thereby benefiting the construction materials sector [19] 2. Consumer Building Materials - The consumer building materials segment is under pressure, but leading companies are expected to maintain strong performance due to their operational resilience [2][19] - The real estate sector is still in a downturn, with new construction areas expected to remain low until sales stabilize [2][19] 3. Cement - Cement prices have continued to rise, with a national average of CNY 426 per ton as of November 8, 2024, marking an increase of CNY 8.67 per ton from the previous month and a 51.5% increase year-on-year [2][19] - The report recommends focusing on companies like Conch Cement and Huaxin Cement, which are expected to perform well in this environment [2][19] 4. Fiberglass and Composite Materials - Fiberglass prices are currently weak, with the market for electronic yarn stabilizing [2][19] - The report suggests that leading companies in this segment, such as China Jushi and Changhai Co., are well-positioned for future growth [2][19] 5. Glass - The float glass market is showing signs of improvement, with a national average price of CNY 1435 per ton, reflecting a 4.9% increase from the previous month [2][19] - The report highlights low valuations for leading glass companies, indicating potential investment opportunities [2][19]