建筑材料：加快推进城市更新，降准降息值得期待

Investment Rating - The industry rating is "Outperform the Market" [8] Core Viewpoints - The report emphasizes the acceleration of urban renewal projects and the expectation of monetary policy easing, including potential interest rate cuts [3][12] - It highlights that the sales revenue of the top 100 real estate companies in 2024 is projected to be CNY 43,547.3 billion, a year-on-year decrease of 30.6%, but the decline is narrowing [3][12] - The report notes that the real estate market is entering a bottoming phase, with increasing sensitivity to policy easing, which is expected to stabilize the market fundamentals [3][12] Summary by Sections Weekly Insights - The State Council meeting on January 3, 2024, called for the acceleration of urban renewal projects, including the renovation of old urban communities and villages [3][12] - The central bank's monetary policy committee is expected to implement moderately loose monetary policies, enhancing counter-cyclical adjustments [3][12] - Various local governments are extending real estate policies and introducing new measures to stimulate the housing market [3][12] High-Frequency Data - As of January 3, 2025, the average price of bulk P.O 42.5 cement is CNY 410.4 per ton, a decrease of 0.9% from the previous week but an increase of 13.7% year-on-year [4][13] - The average price of glass (5.00mm) is CNY 1,324.3 per ton, down 1.3% from the previous week and down 34.0% year-on-year [4][20] Sector Review - The Shanghai Composite Index fell by 5.55%, and the Shenzhen Composite Index dropped by 7.87%, with the building materials sector index down 5.69%, ranking in the middle among all industries [5][50] - Sub-sectors such as cement manufacturing and glass manufacturing experienced declines of 4.93% and 6.71%, respectively [5][50] Investment Recommendations - The report suggests focusing on three main investment lines: high-quality companies benefiting from urban renewal, undervalued stocks with long-term potential, and leading cyclical building material companies [6] - Specific companies recommended include Weixing New Materials, Beixin Building Materials, and Huaxin Cement [6]