4月地产开竣工走弱，LPR调降助力稳楼市

Investment Rating - The industry rating is "Outperform the Market" [8][69] Core Views - The report highlights that the real estate market is under pressure, with significant declines in development investment and new construction areas. In the first four months of 2025, real estate development investment was CNY 27,730 billion, down 10.3% year-on-year, and new construction area decreased by 23.8% [3][13] - The recent reduction in LPR rates by 10 basis points is expected to help stabilize the real estate market, with a focus on urban infrastructure and renovation of existing buildings [3][13] - Short-term and medium-term outlooks suggest that the easing of credit risks in the real estate sector may benefit the building materials sector, with expectations of policy support to stabilize housing prices and transaction volumes [3][6][13] Summary by Sections Recent Market Data - As of May 23, 2025, the average price of bulk P.O 42.5 cement was CNY 380.5 per ton, a decrease of 1.1% week-on-week and a year-on-year increase of 6.6% [4][14] - The price of glass (5.00mm) was CNY 1,237.1 per ton, down 0.9% week-on-week and down 26.0% year-on-year [22][24] Sector Performance - The construction materials index fell by 1.1%, with sub-sectors showing mixed performance. Pipe manufacturing increased by 1.16%, while glass manufacturing decreased by 2.38% [5][54] - The report suggests that the building materials sector's fundamentals have further deteriorated compared to the end of 2022, but the space for further decline is limited [6][54] Investment Recommendations - The report recommends focusing on three main lines for investment: high-quality companies benefiting from renovation, undervalued stocks with credit risk relief, and leading cyclical building materials companies [6][54]