HUAXI Securities·2025-06-08 09:12Investment Rating - Industry Rating: Recommended [5] Core Views - The approval of the Three Gorges Waterway project, with a total investment of 76.6 billion yuan, is expected to benefit companies in the civil explosives and engineering sectors, such as Zhongyan Dadi and Chongqing Construction [4][8] - The civil explosives industry is experiencing high demand, with consolidation expected among leading companies, benefiting firms like Guangdong Hongda and Xuefeng Technology [8] - The carbon fiber market is seeing price increases and emerging demand, with recommendations for companies like Zhongfu Shenying and Jilin Chemical Fiber [8] - There is a strong focus on resilient companies with high dividends in the consumer building materials sector, recommending firms like Dongfang Yuhong and Weixing New Materials [8] - The expectation for increased domestic investment is strong, with recommendations for China State Construction and China Communications Construction [8] - The trend of domestic substitution is accelerating, with recommendations for Maijia Xincai and Songji Coatings [8] Summary by Sections Building Materials - Beneficiaries include Zhongyan Dadi and Chongqing Construction due to major projects like the Three Gorges Waterway and Yarlung projects [8] - The civil explosives sector is consolidating, with a target of reducing the number of producers to 50 by 2025, benefiting companies like Guangdong Hongda and Xuefeng Technology [8] - Carbon fiber prices are rising, with a projected annual capacity of 135,500 tons by the end of 2024, benefiting companies like Zhongfu Shenying and Jilin Chemical Fiber [8] Market Trends - The new housing and second-hand housing market is showing a downward trend, with new housing transaction area down 24% year-on-year and 40.21% month-on-month in major cities [2][24] - Cement prices are under downward pressure, with a national average price of 363.5 yuan/ton, down 1.2% week-on-week [3][26] - The glass market continues to decline, with float glass prices averaging 1,250.27 yuan/ton, down 1.63% week-on-week [3][26] Investment Opportunities - The report highlights the potential for investment in infrastructure and civil engineering projects, with a focus on companies that can benefit from increased domestic demand and government support [8][11] - The "Belt and Road" initiative is expected to catalyze international engineering projects, benefiting companies like China State Construction and China Metallurgical Group [11]