Orient Securities·2025-08-26 06:40Investment Rating - The report maintains a "Positive" outlook for the industry, indicating a potential return greater than 5% relative to the market benchmark index [8][12]. Core Insights - The construction of the New Tibet Railway is expected to significantly boost regional cement demand, with an estimated requirement of 30 million tons of cement over ten years, translating to an annual demand increase of 3 million tons [8]. - The railway project will not only enhance infrastructure investment in the short term but also stimulate economic activity in the region, leading to increased demand for construction materials [8]. - The performance of regional cement leaders may be underestimated, as the market has focused on short-term sentiments rather than the long-term benefits of infrastructure development [8]. Summary by Sections Investment Recommendations and Targets - The report suggests focusing on cement companies with production capacity in Xinjiang, such as Qingsong Jianhua, Tianshan Co., and Conch Cement, due to their potential profit elasticity from rising cement prices [4][8]. - The report highlights that the local cement market in southern Xinjiang is relatively insulated from external competition, allowing local companies to benefit significantly from increased demand [8]. Industry Overview - The New Tibet Railway, which spans approximately 2000 kilometers, is projected to require about 1.5 million tons of cement per kilometer, leading to a substantial increase in regional cement consumption [8]. - The report emphasizes the importance of infrastructure improvements in enhancing logistics and economic vitality, which will further support cement consumption in the region [8].