ACC(SH:600585) Dongxing Securities·2025-07-07 11:04Investment Rating - The report maintains a "Positive" investment rating for the building materials industry, indicating an expected performance that is stronger than the market benchmark by over 5% [2][19]. Core Insights - The implementation of anti-involution policies is accelerating the establishment of a new supply-demand balance in the cement and related industries, promoting high-quality development [4][5]. - The central government's emphasis on preventing low-price disorderly competition and enhancing product quality is a significant driver for the industry's transformation [3][4]. - The cement industry is expected to see a gradual increase in the enforcement of anti-involution policies, which will optimize supply and reduce excess capacity [5][6]. Summary by Sections Policy Impact - The anti-involution policy, first proposed in mid-2024, is being progressively implemented, with the aim of curbing vicious competition and promoting healthy industry growth [4][6]. - The cement association has issued guidelines to ensure that companies with actual capacities exceeding registered capacities comply with new regulations, which will help control supply [5]. Industry Dynamics - The cement industry is currently facing a challenging environment due to declining demand and intense competition, leading to a significant number of smaller companies being eliminated from the market [6]. - The report highlights that the ongoing competition and the implementation of anti-involution policies will lead to a more favorable market environment, allowing for the survival of stronger companies [6]. Market Performance - The building materials industry has a total market capitalization of approximately 685.91 billion, with an average price-to-earnings ratio of 54.11 [6]. - The report suggests that the combination of supply-side optimization and demand recovery will create a new balance in the industry over the next 3-6 months [11]. Investment Recommendations - The report recommends focusing on leading companies in the cement sector, such as Conch Cement, and suggests monitoring other strong players like Shengfeng Cement and China National Building Material [11].