证券时报·2025-10-27 04:14Core Viewpoint - The construction materials industry in China is facing significant challenges due to declining prices and demand, leading to increased losses and structural issues. The government has introduced a growth stabilization plan for 2025-2026 to enhance profitability and promote green and digital development in the sector [5][6]. Group 1: Industry Challenges - The construction materials industry is a crucial foundation for the national economy, but recent years have seen a decline in prices for key products like cement and glass, resulting in an expanded loss margin and highlighted structural problems [3]. - In 2024, the domestic cement industry's profit is projected to be 26.6 billion yuan, a nearly 90% drop from the historical high of 186.7 billion yuan in 2019. The demand has reverted to levels seen before 2010, necessitating a restructuring of competitive order [7]. - From January to September 2025, domestic cement production was 1.259 billion tons, a year-on-year decrease of 5.2%, with prices continuing to decline [7]. Group 2: Government Initiatives - The Ministry of Industry and Information Technology and five other departments issued the "Construction Materials Industry Stabilization Growth Work Plan (2025-2026)," aiming for a significant improvement in profitability and a target of over 300 billion yuan in revenue from green building materials by 2026 [5]. - The plan emphasizes strict capacity control, nurturing emerging markets, and accelerating green production to transition towards high-quality, low-carbon development [5][8]. Group 3: Capacity Control Measures - To address the sluggish market, the industry is implementing strict capacity control measures. For instance, Conch Cement has increased the number of days its production lines are idled and has eliminated 16 production lines, accounting for over 22% of the total capacity eliminated in the industry [8][9]. - By the end of 2025, it is expected that 10% of the total cement capacity will be eliminated, with the concentration of capacity among the top ten companies rising from 56.5% to over 65% [9]. Group 4: Innovation and Market Development - Companies are diversifying their operations to mitigate risks and foster new growth points. For example, Conch New Materials is acquiring a 51% stake in a plastic products company to enhance synergy and expand into new markets [11]. - The cement industry is increasingly exploring horizontal expansions into aggregates and vertical extensions into concrete, leveraging synergies for competitive advantage [12]. Group 5: Green and Low-Carbon Initiatives - The industry is advancing towards green and low-carbon production through technological innovations, such as the transition to natural gas in glass production, which has reached 65% of total capacity [15]. - The cement sector is adopting carbon capture technologies and optimizing energy consumption, with the proportion of green and smart factories increasing to over 68% [15][16].