KAIYUAN SECURITIES·2025-06-09 07:11Investment Rating - The investment rating for the building materials industry is "Positive" (maintained) [1] Core Viewpoints - Urban renewal is expected to release consumption potential, creating investment opportunities in building materials. The central government plans to allocate over 20 billion yuan to support urban infrastructure improvements, indicating a significant demand for renovation and upgrades in existing urban housing and infrastructure [3][4] - The report highlights specific companies to watch in the consumption building materials sector, including Sankeshu (channel expansion and retail growth), Dongfang Yuhong (waterproofing leader with optimized operations), Weixing New Materials (high-quality operations with a strong retail business), and Jianlang Hardware. Beneficiary companies in the cement sector include Conch Cement, Huaxin Cement, and Shangfeng Cement [3][4] - The report notes that the cement industry is expected to undergo energy-saving and carbon reduction initiatives, with a target to control cement clinker capacity to around 1.8 billion tons by the end of 2025, which will accelerate the upgrade of energy-efficient equipment [3][4] - The glass fiber sector is also highlighted, with a focus on the potential for price increases due to "equal tariffs" benefiting companies with overseas production bases. The report emphasizes the growing interest in LowDk electronic fabrics, which are used in 5G communication and AI applications [3][4] Summary by Sections Market Overview - The building materials index increased by 0.63% in the week of June 2 to June 6, 2025, underperforming the CSI 300 index, which rose by 0.88% [4][13] - Over the past three months, the CSI 300 index has decreased by 1.71%, while the building materials index has fallen by 2.95%, indicating a 1.24 percentage point underperformance [4][13] - In the past year, the CSI 300 index increased by 7.84%, while the building materials index only rose by 2.62%, showing a 5.22 percentage point underperformance [4][13] Cement Sector - As of June 6, 2025, the average price of P.O42.5 bulk cement nationwide was 302.38 yuan/ton, a decrease of 2.77% from the previous period. The price variations across regions were significant, with Northeast China seeing a drop of 14.03% [6][26] - The clinker inventory ratio nationwide was 61.81%, reflecting a decrease of 2.85 percentage points [6][26] Glass Sector - The average price of float glass was 1264.00 yuan/ton as of June 6, 2025, with a slight decrease of 0.08%. The inventory of float glass increased by 3.83%, reaching 6.011 million weight boxes [6][78] - The average price of photovoltaic glass was 127.73 yuan/weight box, down by 5.27% [6][83] Valuation Metrics - The average price-to-earnings (PE) ratio for the building materials sector was 26.28 times, ranking it 16th lowest among all A-share industries. The price-to-book (PB) ratio was 1.11 times, ranking it 5th lowest [21][24]