Investment Rating - The report maintains a "Neutral" rating for both the real estate and building materials sectors [1][3]. Core Insights - Real estate sales remain sluggish, with a cumulative year-on-year decline of 5.5% in sales area and 7.9% in sales revenue for the first three quarters of 2025. The decline has widened compared to the end of August [3][26]. - The report highlights a shift in the real estate sector towards "quality, service, and sustainability," moving away from high leverage and high turnover models. It emphasizes the importance of urban renewal to unlock potential in existing stock [3][27]. - The building materials sector is expected to see a steady recovery in profitability, with a target of exceeding 300 billion yuan in revenue from green building materials by 2026 [3][51]. Summary by Sections Real Estate Sector Overview - As of October 30, 2025, the Shenwan Real Estate Index has increased by 0.31% over the past two weeks, underperforming the CSI 300 Index by 4.03 percentage points [13]. - In September 2025, new residential prices in first-tier cities fell by 0.3% month-on-month, while second-tier cities saw a 0.4% decline [24][26]. - The report identifies key companies to watch, including Poly Developments, Binjiang Group, and China Merchants Shekou, which are expected to perform well in the current market environment [3][27]. Building Materials Sector Overview - The Shenwan Building Materials Index rose by 2.19% over the past two weeks, ranking 16th among 31 sectors [28]. - The report notes a significant decline in national cement production, down 5.2% year-on-year to 1.259 billion tons, marking the lowest level since 2010 [48][52]. - Companies such as Conch Cement, Taipai Group, and Huaxin Cement are highlighted for their strong fundamentals and high dividend yields [52]. Specific Material Insights - The glass and fiberglass sectors are facing pressure with low prices, but the report anticipates a long-term improvement in competition due to supply constraints [5][52]. - The report suggests that the photovoltaic glass industry is transitioning towards a model driven by technology and sustainability, which is expected to enhance profitability [5][52]. - Consumer building materials are seeing improved margins due to price increases and demand from urban renewal projects, with companies like North New Materials and Rabbit Baby recommended for attention [53].

Core Viewpoint - The meeting organized by the Ministry of Industry and Information Technology emphasizes the importance of stabilizing growth in the cement industry as a key measure to implement the decisions of the central government, ensuring the safety and stability of the industrial supply chain [1][2]. Group 1: Industry Growth and Policy Implementation - The meeting highlighted the need to accelerate the implementation of the "Cement Industry Stabilization Growth Work Plan (2025-2026)" to enhance the quality and efficiency of the cement industry, promoting stable operations and structural optimization [1]. - It was noted that there is a significant imbalance between supply and demand in the cement industry, with a focus on achieving dynamic balance and promoting industrial transformation and upgrading [1][2]. - The meeting called for a prohibition on new production capacity, regulation of existing capacity, and the elimination of outdated capacity to address the supply-demand contradiction [1]. Group 2: Role of Key Enterprises and Associations - Key enterprises are urged to play a leading role by strictly implementing policies related to cement capacity replacement and regulation, with a deadline set for the end of 2025 to develop capacity replacement plans for excess registered capacities [2]. - Industry associations are tasked with enhancing self-discipline, conducting research on regional market supply and demand balance, and organizing staggered production in the cement industry to prevent unfair competition and promote a favorable development environment [2].

Core Viewpoint - The meeting organized by the Ministry of Industry and Information Technology emphasizes the importance of stabilizing growth in the cement industry as a key measure to implement the decisions of the Central Committee and the State Council, ensuring the safety and stability of the industrial supply chain [1] Group 1: Industry Growth Strategy - The implementation of the "Cement Industry Stabilization Growth Work Plan (2025-2026)" is crucial for enhancing the quality and efficiency of the cement industry, promoting stable operations and structural optimization [1] - The meeting highlights the need to address the prominent supply-demand imbalance in the cement industry, aiming for dynamic balance and industrial transformation [1] Group 2: Capacity Management - Strict measures are to be taken against the addition of new capacities, while existing capacities must be regulated and outdated capacities eliminated [1] - Key enterprises are expected to lead by example, ensuring compliance with cement capacity replacement policies and formulating capacity replacement plans for excess registered capacities by the end of 2025 [1] Group 3: Industry Self-Regulation - Industry associations are encouraged to enhance self-regulation, conduct research on regional market supply-demand balance, and organize staggered production in the cement industry [1] - The associations will also carry out average cost surveys across regions to provide pricing references for operators, preventing unfair competition through below-cost dumping [1]

Core Insights - The "Work Plan for Stable Growth in the Building Materials Industry (2025-2026)" aims to promote the stable operation and structural optimization of the building materials industry, accelerating high-quality development [1] Group 1: Growth Targets and Industry Management - The plan sets a target for the green building materials industry to exceed 300 billion yuan in revenue by 2026, with an expected revenue of 210 billion yuan in 2024, reflecting a growth of approximately 10% [2] - The first measure emphasizes strengthening industry management to promote the survival of the fittest, addressing the structural contradictions in supply and demand that have affected stable development [2][4] - The plan includes strict capacity control for cement and glass production, aiming to align actual capacity with registered capacity and enhance the dynamic adjustment capability of supply and demand [2][4] Group 2: Traditional and Emerging Industries - The plan promotes the green low-carbon transformation and digitalization of traditional building materials industries to stabilize the growth foundation [3] - It also aims to cultivate advanced inorganic non-metallic materials and specialty mineral resources, enhancing new growth momentum for the industry [3] - The adjustment of the building materials industry structure and demand upgrades will create new market opportunities, particularly in industrial sectors and urban renewal projects [3] Group 3: Challenges and Policy Support - The building materials industry has faced significant growth pressures, with economic benefits declining from 2022 to 2024, particularly in the cement and flat glass sectors [4][5] - The plan prohibits the addition of new cement clinker and flat glass capacity, requiring capacity replacement plans for new and renovated projects to control production and optimize industry structure [4][6] - The cement industry is entering a new adjustment cycle, with a need for capacity replacement to align actual production with registered capacity, promoting high-quality development [5][6] Group 4: Glass Industry and Technological Innovation - The glass industry faces challenges such as unreasonable capacity structure and fluctuating market demand, particularly affected by the real estate market downturn [7] - The plan outlines pathways for stable growth in the glass industry, encouraging technological upgrades and the development of high-performance glass products to enhance market competitiveness [7] - Companies are urged to explore new profit growth points and expand into overseas markets while consolidating their domestic market presence [7][8] Group 5: Implementation and Future Directions - China National Building Material Group is committed to implementing capacity control policies and has completed the exit of over 200 inefficient production lines during the 14th Five-Year Plan period [8] - The group aims to transform its scale advantage into quality and efficiency advantages, focusing on new materials and diversified growth strategies [8] - The company plans to fully implement the directives of the "Work Plan" to create a comprehensive industry matrix of inorganic, organic, and composite materials [8]

Core Viewpoint - The cement and building materials sector has shown significant upward movement, with the building materials ETF (516750) experiencing a rise of 3.11% at one point and a current increase of 2.97%, marking a four-day consecutive gain of over 5.5% [1] Group 1: Market Performance - Over 95% of the constituent stocks in the index are in the green, with notable stocks such as Huaxin Cement, Jinyu Group, and Haiou Zhugong hitting the 10% daily limit up [1] - The building materials ETF closely tracks the CSI All-Share Building Materials Index, which consists of stocks from the building materials industry [1] Group 2: Policy and Industry Outlook - The Ministry of Industry and Information Technology, along with five other departments, has jointly issued the "Building Materials Industry Stabilization Growth Work Plan (2025-2026)", aiming to effectively enhance profitability as a primary goal for 2025-2026 [1] - The plan emphasizes strengthening industry management and promoting a survival of the fittest approach as key initiatives [1] - Analysts believe that the cement sector may have reached a bottoming point, with improvements expected in the second half of the year due to dual support from supply-side production restrictions and demand-side infrastructure investments [1] Group 3: Sector Composition - According to the Shenwan industry classification, the top three sectors within the building materials ETF are cement manufacturing (42.2%), other building materials (11.7%), and waterproof materials (10.5%) [1]

Core Viewpoint - The Ministry of Industry and Information Technology, along with five other departments, has issued a work plan for the construction materials industry aimed at stabilizing growth from 2025 to 2026, focusing on enhancing profitability through coordinated efforts on both supply and demand sides [1] Group 1: Supply-Side Measures - The work plan prohibits the addition of new production capacity and emphasizes risk warning to control total output [1] - Supply-side optimization includes upgrading traditional building materials and developing advanced inorganic non-metallic materials [1] Group 2: Demand-Side Measures - The demand side aims to tap into traditional consumption potential and cultivate emerging applications [1] Group 3: Related Financial Instruments - The Infrastructure ETF (159619) tracks the CSI Infrastructure Index (930608), which selects listed companies involved in construction and engineering, as well as building decoration and machinery manufacturing, to reflect the overall performance of related securities in China's infrastructure sector [1]

Core Viewpoint - The new "Building Materials Industry Stabilization Growth Work Plan (2025-2026)" emphasizes coordinated efforts on both supply and demand sides to enhance profitability, with a focus on quality and efficiency, technological innovation, and industry transformation [4][5]. Group 1: Background and Objectives - The new plan is issued against the backdrop of weak market demand and prominent structural issues in the building materials industry, differing from the previous plan which was released during the early recovery phase post-pandemic [4]. - The current plan does not set specific total industry growth targets but aims for effective improvement in profitability levels and sets a specific revenue target of over 300 billion yuan for green building materials by 2026 [4][5]. Group 2: Key Measures - The plan prioritizes strict management of the industry, promoting the elimination of outdated production capacities in cement and flat glass, and emphasizes the need for capacity replacement plans by the end of 2025 [5][6]. - It encourages the development of advanced inorganic non-metallic materials, including advanced glass, artificial crystals, and high-performance fibers, while supporting local initiatives for pilot platform construction [6]. Group 3: Supply and Demand Strategies - On the supply side, the plan prohibits the addition of new capacities for cement clinker and flat glass, aiming to phase out low-performance enterprises and enhance environmental performance [5][6]. - On the demand side, it focuses on tapping into traditional consumption potential and fostering new applications to stimulate market demand [5].

Group 1 - The core viewpoint of the article highlights a significant decline in glass futures prices, with the main contract closing at 1228.00 yuan/ton, down 2.31% [1] - The macroeconomic context includes a notification from multiple government departments regarding the "Construction Materials Industry Stabilization Growth Work Plan (2025-2026)" [2] - On the fundamental side, there was no significant change in glass production lines last week, but the supply volume increased week-on-week due to the release of replenishment demand from downstream [2] Group 2 - Inventory levels for glass production companies were reported at 53.29 million heavy boxes, a decrease of 1.42 million heavy boxes week-on-week [2] - The market sentiment for glass prices has shown signs of retreat, with the "anti-involution" primarily driven by policy support, and future price movements will depend on upcoming fundamental data [2] - Short-term market expectations indicate a potential wide fluctuation in glass prices [2]

Investment Rating - The report maintains an "Overweight" rating for the construction materials sector [4]. Core Views - The construction materials sector is expected to recover positively in 2025-2026, with improved profitability levels due to strict capacity control measures for cement and glass production [2]. - The report highlights the importance of municipal engineering projects, which are likely to accelerate, benefiting companies like Longquan Co., Qinglong Pipeline, China Liansu, and Zhen'an Technology [2]. - The report emphasizes the ongoing supply-demand imbalance in the float glass market, with a focus on price stability following production cuts in photovoltaic glass [2]. - Consumer building materials are recommended due to favorable conditions from second-hand housing transactions and consumption stimulus policies, with companies like Beixin Building Materials and Weixing New Materials highlighted [2]. - Cement production is expected to see positive changes on the supply side, with a focus on regional demand increases driven by large infrastructure projects [2]. Summary by Sections Cement Industry Tracking - As of September 26, 2025, the national cement price index is 347.22 CNY/ton, up 2.61% week-on-week, while cement output decreased by 5.59% to 2.5905 million tons [3][18]. - The cement industry is facing a "supply price increase, demand not following" contradiction, with infrastructure being the mainstay of demand [18]. Glass Industry Tracking - The average price of float glass is 1224.74 CNY/ton, with a week-on-week increase of 1.39%, while inventory levels have decreased [6]. - The report notes that the market's supply-demand structure has not improved significantly, and the upcoming National Day holiday may exert pressure on supply and demand [6]. Fiberglass Industry Tracking - The report indicates that fiberglass prices are stabilizing, with demand showing slight improvement, particularly for high-end products [7]. - The overall inventory growth rate has slowed, suggesting a potential for price increases in the future [7]. Consumer Building Materials Tracking - The demand for consumer building materials continues to show signs of weak recovery, with upstream raw material prices experiencing fluctuations [8]. Carbon Fiber Industry Tracking - The carbon fiber market remains stable, with production costs reported at 106,800 CNY/ton and a negative gross margin [8]. - The report highlights a slow recovery in downstream demand, particularly in wind energy and hydrogen storage sectors [8].

1. Report Industry Investment Rating No information about the industry investment rating is provided in the given reports. 2. Core Views of the Report - This week, the spot price of rebar decreased slightly, terminal demand remained weak, and the willingness to replenish inventory before the holiday was low. The black - series led the decline in the commodity market on Friday, and the coking industry association issued a clarification statement in the afternoon. The double - coke continued to fall at night, indicating significant uncertainties in the fundamentals. The real estate sales declined marginally this week, with first - tier cities providing support. The momentum of travel was strong approaching the holiday [1]. - In terms of real estate sales, the transaction area of new homes in 20 cities tracked by Wind increased by 7.58% week - on - week and decreased by 10.63% year - on - year. The transaction area in first - tier cities was significantly stronger than the same period last year, while that in second - tier cities turned negative year - on - year. The sales area of second - hand homes in Beijing and Shanghai was much higher than last year [1]. - In investment and production, most commodity prices rose. The rebar price decreased slightly, with weak terminal demand and low pre - holiday inventory replenishment willingness. The glass futures price increased due to stable supply and improved demand in the peak season, along with positive policy sentiment. The cement price index rose as the traditional peak season deepened, and the asphalt price increased slightly supported by the rebound in oil prices [1]. - In industrial production, the operating rates showed differentiation. The PTA operating rate declined, while the operating rates of automobile tires, coking enterprises, and polyester filament remained basically flat. The blast furnace operating rate of steel mills increased slightly, and the operating rate of petroleum asphalt increased significantly [1]. - In consumption, the travel momentum was strong. Subway travel exceeded the seasonal level, and automobile consumption, domestic flights, and movie box - office were in line with the season [1]. - In terms of inflation, the pork price declined, vegetable prices rose, and oil prices increased. The increase in vegetable prices was due to some vegetables entering the end of the harvest season and reduced production after the temperature drop in the north. The rise in crude oil prices was mainly driven by the geopolitical disturbances in Russia and Ukraine [1]. - In exports, the SCFI declined, and the BDI increased. The demand in the transportation market remained unchanged, and the spot - market booking prices continued to fall [1]. 3. Summary According to Relevant Catalogs 3.1 Real Estate Sales: First - Tier Cities Provide Support - New home sales: From September 19th to 25th, the transaction area of new homes in 20 cities tracked by Wind increased by 7.58% week - on - week and decreased by 10.63% year - on - year. First - tier cities' transaction area was significantly stronger than last year, second - tier cities' year - on - year sales turned negative, and third - and fourth - tier cities' sales were weaker than last year and the previous period [1][6]. - Second - hand home sales: The sales area of second - hand homes in Beijing and Shanghai was much higher than last year. Overall, the transaction area of second - hand homes in key cities was basically flat week - on - week, with the year - on - year increase showing a decline. Except for Shenzhen, the transaction areas of other key cities were stronger than the previous period [1][20]. 3.2 Investment: Most Commodity Prices Rose - Rebar: The price decreased slightly. Due to weak terminal demand and low pre - holiday inventory replenishment willingness, merchants focused on reducing inventory. The inventory decreased by 2.75% week - on - week, and the apparent consumption increased by 4.96% [1][5]. - Glass: The futures price increased. The supply output was stable, the demand improved marginally in the peak season, and the policy sentiment of the "Building Materials Industry Stable Growth" was positive. The price increased by 3.71% week - on - week [1][5]. - Cement: The price index rose. As the traditional peak season deepened, enterprises generally raised prices, with a 2.51% increase week - on - week [1][5]. - Asphalt: The price increased slightly. The rebound in oil prices provided price support, with a 0.78% increase week - on - week [1][5]. 3.3 Production: Operating Rates Showed Differentiation - PTA: The operating rate declined, dropping from 77.29% to 76.48% [1][5]. - Automobile tires, coking enterprises, and polyester filament: The operating rates remained basically flat [1]. - Steel mills' blast furnaces: The operating rate increased slightly, rising from 84% to 84.47% [1][5]. - Petroleum asphalt: The operating rate increased significantly, rising from 34.4% to 40.1% [1][5]. 3.4 Consumption: Strong Travel Momentum - Subway travel: It was higher than the seasonal level, although it decreased by 2.54% week - on - week [1][5]. - Automobile consumption, domestic flights, and movie box - office: They were in line with the season. Automobile consumption increased by 7.07% week - on - week, domestic flights decreased by 1.37% week - on - week, and movie box - office increased by 17.00% week - on - week [1][5]. 3.5 Exports: SCFI Declined, BDI Increased - SCFI: It decreased by 6.98% week - on - week, indicating that the demand in the transportation market remained unchanged and the spot - market booking prices continued to fall [1][5]. - BDI: It increased by 2.86% week - on - week [1][5]. - CRB spot index: It decreased slightly by 0.75% week - on - week [1][5]. 3.6 Prices: Pork Price Declined, Vegetable and Oil Prices Rose - Pork: The price decreased slightly, dropping from 19.48 yuan/kg to 19.42 yuan/kg [1][5]. - Vegetables: The price increased, rising by 2.01% week - on - week, due to some vegetables entering the end of the harvest season and reduced production after the temperature drop in the north [1][5]. - Oil: The price increased. The Brent crude oil spot price in the UK rose from $67.15/barrel to $72.09/barrel, mainly driven by geopolitical disturbances in Russia and Ukraine [1][5].