GF SECURITIES·2026-03-08 11:48Core Insights - The report highlights that the prices of raw yarn and electronic cloth have exceeded expectations, indicating a strong recovery in the waterproof sector [1] - The overall market performance of the construction materials sector is expected to improve, with a focus on key players benefiting from price increases [2] Group 1: Price Trends and Market Dynamics - The domestic non-alkali raw yarn market has seen price increases of 100-200 RMB per ton, while the electronic yarn market's G75 product has risen by 500-1000 RMB per ton, with a notable increase of 6.98% for G75 [10][11] - The waterproof sector has also seen price hikes, with major companies like Oriental Yuhong and Keshun announcing price increases of 5%-10% for their products, signaling a recovery in the industry [12] - The government has set a GDP growth target of 4.5-5% for 2026, with policies aimed at promoting consumption and investment, which may positively impact the construction materials sector [15] Group 2: Industry Fundamentals and Company Performance - The construction materials industry is experiencing a recovery, with the supply side improving due to companies adjusting production and maintaining market stability [20] - The cement market has seen a slight decline of 0.1% in prices, but an upward trend is expected by late March, supported by improved self-discipline among companies [26] - The glass market is currently stable, with float glass prices remaining unchanged while photovoltaic glass prices are under pressure [26] Group 3: Key Company Recommendations - Companies such as China Jushi, Zhongcai Technology, and Honghe Technology are recommended for their strong market positions in the fiberglass sector [11][26] - In the waterproof materials segment, companies like Oriental Yuhong and Keshun are highlighted as beneficiaries of the price increases [12] - The report suggests focusing on leading companies in the consumer building materials sector, including Sanhe Tree, Rabbit Baby, and North New Materials, which are expected to show resilience and growth potential [25]