Tianfeng Securities·2025-05-05 12:53Investment Rating - The industry rating is maintained at "Outperform the Market" [4] Core Insights - The construction materials industry faced significant pressure in 2024, with a total revenue decline of 15% to 592 billion yuan, while the first quarter of 2025 shows signs of recovery with a revenue decrease of only 6% and a net profit increase of 7% [1][13] - All sub-sectors experienced profit declines in 2024, but the first quarter of 2025 saw notable profit growth in cement and fiberglass sectors [2][34] Summary by Sections 1. Industry Overview - The construction materials industry experienced weak demand in 2024, with a total revenue of 592 billion yuan, down 15% year-on-year. The net profit for the year was 223 billion yuan, a 46% decline [1][13] - The first quarter of 2025 indicates a revenue of 118.8 billion yuan, down 6% year-on-year, but with a net profit of 34 billion yuan, marking a 7% increase [1][13] 2. Sub-sector Performance 2.1 Cement - In 2024, the cement sector generated 271.1 billion yuan in revenue, a 22.9% decline, with a net profit of 10 billion yuan, down 34.4% [41] - The first quarter of 2025 saw a revenue of 50 billion yuan, a 7.4% decline, but a reduction in losses with a net profit of -250 million yuan [41] 2.2 Fiberglass - The fiberglass sector achieved a revenue of 48.2 billion yuan in 2024, down 2.8%, but net profit increased by 35.7% to 3.66 billion yuan [41] - In the first quarter of 2025, revenue rose by 25.8% to 12.2 billion yuan, with net profit soaring by 123.6% to 1.26 billion yuan [41] 2.3 Consumer Building Materials - This sector reported a revenue of 141 billion yuan in 2024, down 5.3%, with a net profit of 6.08 billion yuan, down 44.8% [41] - The first quarter of 2025 showed a revenue of 28.5 billion yuan, down 2.8%, and a net profit of 1.51 billion yuan, down 13.4% [41] 2.4 Glass - The photovoltaic glass segment saw a revenue decline of 17.6% to 26.17 billion yuan in 2024, with a net profit drop of 91.7% to 270 million yuan [41] - Float glass revenue also decreased by 8.1% to 46.41 billion yuan, with a net profit decline of 72.6% to 1.11 billion yuan [41] 3. Investment Recommendations - Recommended stocks include Huaxin Cement, Shangfeng Cement, and Conch Cement, all rated as "Buy" with projected earnings growth [8]