建筑材料行业跟踪分析：继续看好建材板块机会

Investment Rating - The industry investment rating is "Hold" [6] Core Viewpoints - The industry fundamentals are under short-term pressure, but the sector is expected to gradually emerge from difficulties. The construction materials industry has faced valuation and performance pressures over the past three years due to real estate deleveraging, intensified competition, raw material fluctuations, and bad debts. Currently, industry profitability is at a historical low, with cement and glass prices, unit profitability, and quarterly revenue growth and net margins of consumer building materials companies all at historical bottom levels. Valuations in the sub-sectors remain below historical averages, and core companies have seen historical lows in valuation within the last 2-3 quarters. Although the industry fundamentals are still under short-term pressure, expectations are continuously improving, and leading companies have demonstrated resilience through stress tests [3][4]. - The report is particularly optimistic about retail building materials leaders that have significant performance and valuation elasticity. Retail building materials show resilience at the bottom, with substantial growth potential in the medium to long term. As the proportion of second-hand housing and the age structure of existing homes increase, the demand for renovation in consumer building materials is expected to rise. Policies promoting trade-ins and renovation subsidies will benefit building materials with strong existing attributes. During a beta down phase, retail building materials exhibit stronger resilience, highlighting their long-term value in a stock-based era. From a mid-term perspective, the growth logic driven by the large post-real estate market and increased industry concentration remains unchanged, and high-quality leaders with strong brand and channel capabilities still have significant growth potential. Additionally, during the recovery phase of the economy, industry leaders are expected to achieve strong profit recovery. The optimization of the market structure, easing price competition, and the expansion of high-margin businesses by quality leaders will significantly restore gross profit levels, coupled with a decrease in expense ratios and reduced impairment burdens, leading to a potential mean reversion in profit margins and substantial profit elasticity. Furthermore, with changes in mainstream consumption scenarios and channel structures, the bargaining power of the industry chain is expected to improve, and the balance sheets and cash flow statements of quality leaders are likely to gradually recover, suggesting that the industry valuation center has room for upward adjustment based on overseas experiences [4]. - Investment recommendations include focusing on species with significant performance and valuation elasticity, such as Sanhe Tree, Oriental Yuhong, Zhite New Materials, China Liansu, and Jianlang Hardware. Additionally, low-valuation targets with relatively stable fundamentals include Tubao, Weixing New Materials, and Beixin Building Materials. Lastly, leading companies in fiberglass, cement, and glass that are at the bottom of the profit cycle but have significant competitive advantages include China Jushi, Anhui Conch Cement, Huaxin Cement, and Qibin Group [4].