Core Viewpoints - The construction materials industry is currently experiencing price fluctuations at the bottom level, awaiting improvements in supply and demand dynamics. The report anticipates that 2025 will be a year of profit recovery for the construction materials sector, supported by supply-side improvements and potential demand elasticity [6][21][22]. Group 1: Consumption Building Materials - The consumption building materials sector is seeing a recovery in retail building materials, driven by high demand in the second-hand housing market and supportive subsidy policies. Leading companies in this sector are demonstrating strong operational resilience [21][22]. - The long-term demand stability for consumption building materials is favorable, with increasing industry concentration and a positive competitive landscape for quality leading companies. Key players to watch include Sanke Tree, Rabbit Baby, North New Materials, Weixing New Materials, Dongfang Yuhong, China Liansu, and East Peng Holdings [21][22]. - The sector's revenue faced pressure due to a downturn in the real estate market, with a reported revenue decline of 7.2% year-on-year in 2024. However, leading companies are outperforming the industry average, indicating a potential for market share growth [27][28]. Group 2: Cement - The national average price of cement has decreased by 1.1% week-on-week, with the average price reported at 379 RMB per ton as of May 16, 2025. The industry is currently at a historical low in terms of valuation, with leading companies like Conch Cement and Huaxin Cement showing better-than-average profitability [22][23]. - The cement sector is expected to benefit from improved self-discipline among companies and a decrease in coal costs, which may enhance profitability levels compared to previous cycles [22][23]. Group 3: Glass - The glass market is experiencing weak transactions and a downward shift in price levels, with the average price of float glass reported at 1288 RMB per ton, down 2.4% week-on-week and 24.3% year-on-year. Leading glass companies are currently undervalued, with potential for recovery [22][26]. - The supply side of the glass market is adjusting, with leading companies maintaining a competitive edge in profitability. Key companies to monitor include Qibin Group, Shandong Yaobang, and Xinyi Glass [22][26]. Group 4: Fiberglass and Carbon-based Composites - The fiberglass market is stable, with prices holding steady. The leading companies in this sector, such as China Jushi and China National Materials, are well-positioned for growth due to favorable demand trends in various applications [23][24]. - The report highlights that the fiberglass and carbon-based composite sectors are characterized by long-term upward demand trends, with a positive competitive landscape among leading firms [23][24].