Report Summary 1. Investment Rating - No investment rating for the industry is provided in the report. 2. Core View - On Tuesday, the RB2601 contract rose and then pulled back. The central bank will improve the monetary policy framework, strengthen implementation and transmission, and improve long - term capital support policies. The weekly output of rebar increased with a capacity utilization rate of 45.39%, terminal demand increased, and inventory declined. Fed rate - cut expectations and production cuts in major steel - producing areas still support steel prices. Technically, the 1 - hour MACD indicator of the RB2601 contract shows a slowdown in the upward trend of DIFF and DEA, and the red column is shrinking. It is recommended to pay attention to the support around 3070, conduct short - term trading, and control risks [2]. 3. Summary by Categories 3.1 Futures Market - The closing price of the RB main contract was 3,091 yuan/ton, down 9 yuan; the position was 1,930,357 lots, down 22,644 lots. The net position of the top 20 in the RB contract was - 103,837 lots, up 8,267 lots. The RB1 - 5 contract spread was - 63 yuan/ton, down 4 yuan. The RB Shanghai Futures Exchange warehouse receipt was 147,361 tons, down 3,058 tons. The HC2601 - RB2601 contract spread was 214 yuan/ton, up 15 yuan [2]. 3.2 Spot Market - The price of HRB400E 20MM in Hangzhou (theoretical weight) was 3,300 yuan/ton, up 20 yuan; in Guangzhou (theoretical weight) was 3,320 yuan/ton, up 10 yuan; in Tianjin (theoretical weight) was 3,140 yuan/ton, unchanged. The RB main contract basis was 209 yuan/ton, up 29 yuan. The spot price difference between hot - rolled coil and rebar in Hangzhou was 70 yuan/ton, down 10 yuan [2]. 3.3 Upstream Situation - The price of 61.5% PB fine ore at Qingdao Port was 796 yuan/wet ton, up 12 yuan; the price of Hebei quasi - first - grade metallurgical coke was 1,590 yuan/ton, up 50 yuan. The price of 6 - 8mm scrap steel in Tangshan was 2,230 yuan/ton, unchanged. The price of Hebei Q235 billet was 2,980 yuan/ton, up 20 yuan. The 45 - port iron ore inventory was 144.2065 million tons, up 1.3895 million tons. The sample coking plant coke inventory was 373,700 tons, down 1,200 tons. The sample steel mill coke inventory was 6.3327 million tons, down 60,000 tons. The 247 - steel - mill blast furnace开工率 was 84.73%, down 1.23 percentage points; the blast furnace capacity utilization rate was 89.92%, down 0.39 percentage points. The Tangshan billet inventory was 1.2873 million tons, up 4,800 tons [2]. 3.4 Industry Situation - The sample steel mill rebar output was 2.0707 million tons, up 59,100 tons; the rebar capacity utilization rate was 45.39%, up 1.29 percentage points. The sample steel mill rebar inventory was 1.8463 million tons, down 100 tons; the 35 - city rebar social inventory was 4.3748 million tons, down 189,300 tons. The independent electric arc furnace steel mill开工率 was 67.71%, unchanged. The domestic crude steel output was 73.49 million tons, down 3.88 million tons. The Chinese rebar monthly output was 1.541 million tons, up 66,000 tons. The steel net export volume was 992,000 tons, up 91,000 tons [2]. 3.5 Downstream Situation - The national real estate climate index was 92.78, down 0.27. The cumulative year - on - year growth rate of fixed - asset investment was - 0.50%, down 1.00 percentage points. The cumulative year - on - year growth rate of real estate development investment was - 13.90%, down 1.00 percentage points. The cumulative year - on - year growth rate of infrastructure construction investment was 1.10%, down 0.90 percentage points. The cumulative value of housing construction area was 6.4858 billion square meters, down 54.71 million square meters. The cumulative value of new housing construction area was 453.99 million square meters, down 55.98 million square meters. The commercial housing unsold area was 39.937 million square meters, up 2.92 million square meters [2]. 3.6 Industry News - From January to September, the total profit of industrial enterprises above designated size in the country was 5.3732 trillion yuan, a year - on - year increase of 3.2%. The total profit of the ferrous metal smelting and rolling processing industry was 97.34 billion yuan. The Ministry of Industry and Information Technology solicited public opinions on the "Implementation Measures for Capacity Replacement in the Iron and Steel Industry (Draft for Comment)", stating that in key areas, the total steel production capacity should not be increased, and the transfer of steel production capacity from non - key areas to key areas and between different key areas is prohibited. The capacity replacement ratio for ironmaking and steelmaking in each province (autonomous region, municipality) should not be less than 1.5:1 [2]

Group 1: Company Overview - Sinopec Engineering (02386) is a leading international energy and chemical construction enterprise under Sinopec, demonstrating strong competitive strength and full-process engineering service capabilities [1] - The company has shown stable operations with a revenue and profit CAGR of 4% and 5% respectively from 2021 to 2024, and a revenue growth of 10% in H1 2025 [1] - The company has a robust order backlog of 215.5 billion yuan, which is 3.4 times its expected revenue for 2024, indicating strong earnings stability [1] Group 2: Financial Performance - The projected net profits for Sinopec Engineering from 2025 to 2027 are 2.56 billion, 2.91 billion, and 3.27 billion yuan, reflecting year-on-year growth of 4%, 14%, and 12% respectively [1] - The expected dividend yields for 2025 and 2026 are 5.6% and 6.3%, showcasing strong investment attractiveness [1] - The company maintains a high dividend payout ratio of over 63% since 2021, with ample cash reserves of 34.3 billion yuan as of H1 2025 [1] Group 3: Industry Trends - The petrochemical industry is experiencing pressure on profitability, leading to a reduction in capital expenditure, but recent policies are aimed at enhancing growth and investment in the sector [2] - The "Petrochemical Industry Stabilization and Growth Work Plan" aims for an average annual growth of over 5% in added value from 2025 to 2026, with a focus on upgrading old facilities [2] - The coal chemical sector is witnessing an upward trend in investment, with significant projects in resource-rich regions like Xinjiang, which are expected to enter a peak phase of bidding and construction starting in 2026 [3] Group 4: International Expansion - The company is benefiting from strong demand in emerging markets such as the Middle East and Africa, with overseas new orders growing by 80% in 2024 and 39% in Q1-Q3 2025 [2] - The contribution of overseas revenue is increasing, with a projected rise from 10% in 2023 to 24% in H1 2025, indicating substantial growth potential in international markets [2]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The steel market is expected to have a narrow - range consolidation. The supply of steel may decrease in the short - term due to environmental protection requirements, and the inventory of building materials and hot - rolled coils has decreased, indicating an improved supply - demand situation [1]. - The iron ore market is likely to show a weak oscillation. The global shipment volume has increased, while the iron - water output has decreased, and the inventory pressure of rebar remains [1]. - The coking coal and coke markets are expected to have a wide - range oscillation. The supply of coking coal is limited due to environmental protection and safety measures, and the demand for coking coal has increased. For coke, the second - round price increase has been implemented, but the profit improvement is less than expected, and the demand is affected by environmental protection and limited terminal demand [1]. - The manganese - silicon and silicon - iron markets are expected to oscillate. For manganese - silicon, the supply is difficult to significantly decrease, the demand is weak, and the inventory is at a high level. For silicon - iron, the cost has slightly increased, the demand is limited, and the inventory is still high [1][3]. 3. Summary According to Relevant Catalogs 3.1 Research Views - **Steel**: The rebar futures price rose by 1.77% to 3100 yuan/ton, and the spot price also increased. The inventory of building materials and hot - rolled coils decreased by 1.47% and 1.05% respectively. The new regulations on steel - industry capacity replacement and the environmental - protection - based production limit in Tangshan may affect the supply [1]. - **Iron Ore**: The futures price of iron ore rose by 2% to 786.5 yuan/ton. The Australian shipment was stable, and the Brazilian shipment increased. The iron - water output decreased by 1.05 tons to 239.9 tons [1]. - **Coking Coal**: The futures price of coking coal rose by 1.2% to 1263.5 yuan/ton. The supply was restricted by environmental protection and safety measures, and the demand increased due to the second - round price increase of coke [1]. - **Coke**: The futures price of coke rose by 1.25% to 1779.5 yuan/ton. The second - round price increase of 50 - 55 yuan/ton was fully implemented, but the profit improvement was less than expected due to the high cost of coking coal [1]. - **Manganese - Silicon**: The futures price of manganese - silicon rose by 0.24% to 5802 yuan/ton. The supply was difficult to significantly decrease, and the demand was weak with high inventory [1]. - **Silicon - Iron**: The futures price of silicon - iron rose by 0.36% to 5564 yuan/ton. The cost increased slightly, the demand was limited, and the inventory decreased slightly but remained high [3]. 3.2 Daily Data Monitoring - **Contract Spread**: For example, the 1 - 5 - month spread of rebar was - 59.0, with a 4.0 increase; the 1 - 5 - month spread of hot - rolled coils was - 13.0, with a 2.0 increase [4]. - **Basis**: The basis of the 01 contract of rebar was 110.0, with a - 44.0 decrease; the basis of the 01 contract of hot - rolled coils was 31.0, with a - 9.0 decrease [4]. - **Spot Price**: The Shanghai spot price of rebar was 3210.0, with a 10.0 increase; the Shanghai spot price of hot - rolled coils was 3330.0, with a 40.0 increase [4]. - **Profit and Spread**: The rebar's on - disk profit was - 130.5, with a 17.4 increase; the spread between hot - rolled coils and rebar was 199.0, with a - 5.0 decrease [4]. 3.3 Chart Analysis - **Main - Contract Price**: The report presents the historical closing - price trends of the main contracts of rebar, hot - rolled coils, iron ore, coke, coking coal, manganese - silicon, and silicon - iron from 2020 to 2025 [6][7][8][9][11][14]. - **Main - Contract Basis**: It shows the historical basis trends of the main contracts of rebar, hot - rolled coils, iron ore, coke, coking coal, manganese - silicon, and silicon - iron [16][17][18][20][21][22][23]. - **Inter - Period Contract Spread**: The report shows the historical spread trends of different - period contracts of rebar, hot - rolled coils, iron ore, coke, coking coal, manganese - silicon, and silicon - iron [26][28][29][30][31][33][34][35][37][39]. - **Inter - Variety Contract Spread**: It presents the historical spread trends of cross - variety contracts such as the spread between hot - rolled coils and rebar, the ratio of rebar to iron ore, the ratio of rebar to coke, etc [41][42][43][45]. - **Rebar Profit**: The report shows the historical profit trends of rebar's on - disk profit, long - process profit, and short - process profit from 2020 to 2025 [46][47][49][50]. 3.4 Black Research Team Member Introduction - Qiu Yuecheng, the assistant director of the research institute and the director of black research at Everbright Futures, has nearly 20 years of experience in the steel industry [52]. - Zhang Xiaojin, the director of resource - product research at Everbright Futures, is a trainer for thermal coal at the Zhengzhou Commodity Exchange [52]. - Liu Xi, a black researcher at Everbright Futures, is good at fundamental supply - demand analysis based on industrial - chain data [52]. - Zhang Chunjie, a black researcher at Everbright Futures, has experience in combining financial theory with industrial operations [53].

Summary of Steel Industry Capacity Replacement Policy Conference Call Industry Overview - The conference call discusses the **steel industry** and its **capacity replacement policy** aimed at enhancing regulation and promoting low-carbon green development in alignment with national environmental requirements [1][2][3]. Key Points and Arguments 1. **New Policy Objectives**: The revised capacity replacement policy aims to strengthen supervision, address issues like "small approvals for large constructions," and emphasize low-carbon development [1][2]. 2. **Historical Context**: The capacity replacement policy has evolved since its inception in 2010, with various revisions aimed at controlling total steel capacity and addressing overcapacity issues [2][3]. 3. **Regulatory Changes**: The new policy introduces stricter enforcement mechanisms and focuses on preventing capacity increases through mere indicator trading, requiring substantial corporate restructuring instead [3][4]. 4. **Environmental Focus**: The policy aligns with national environmental goals, promoting green transformation and reducing high-pollution projects [4][23]. 5. **Market Dynamics**: A two-year transition period allows for market-based trading of capacity indicators, after which such transactions will be prohibited, depending on industry conditions and market demand [9][24]. 6. **Capacity Replacement Restrictions**: The policy specifies types of capacity that cannot be replaced, including outdated capacities and those from zombie enterprises, to ensure effective capacity reduction [8][12]. 7. **Impact on Key Regions**: The policy maintains strict controls in major steel-producing regions like Beijing-Tianjin-Hebei and the Yangtze River Delta, aiming to manage air pollution while ensuring effective oversight [7][12]. 8. **Corporate Restructuring Requirements**: Companies must complete substantial changes in ownership and control to prevent the continuation of operations through mere indicator trading [10][21]. 9. **Increased Capital Expenditure**: The new regulations may lead to increased capital expenditures for steel companies to meet higher environmental standards [21][22]. 10. **Future Regulatory Enhancements**: There is an expectation of further strengthening of carbon emissions trading regulations and differentiated management based on corporate performance in environmental compliance [24]. Additional Important Content - **Transition Period**: The two-year window for market trading of capacity indicators is designed to mitigate potential disruptions for companies engaged in prior capacity exchanges [9]. - **Long-term Industry Goals**: The policy aims to optimize industry structure and improve resource utilization efficiency, contributing to sustainable development goals [4][23]. - **Challenges in Implementation**: The steel industry faces challenges in policy execution and supervision, with local government interests potentially conflicting with national objectives [19][20]. This summary encapsulates the critical aspects of the steel industry's capacity replacement policy as discussed in the conference call, highlighting the regulatory changes, environmental focus, and implications for corporate restructuring and market dynamics.

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - For steel, the spot price declined slightly, and the futures price fluctuated. The supply structure improved, with stable blast - furnace operation and potential decline in EAF production. Demand showed an increase in building materials and a pattern of weak domestic and strong foreign demand for plates. Inventory was decreasing, but the demand's sustainability was uncertain. The strategy is for conservative investors to stay on the sidelines and consider shorting the rebar - iron ore ratio [3]. - For iron ore, the spot price rose slightly, and the futures price remained stable. The supply structure also improved, with increased global shipments and tightened near - term supply due to reduced arrivals. Demand was resilient despite a slight decrease in hot - metal production. Inventory continued to accumulate, and the market sentiment was bearish due to potential supply increases from the Simandou project. Aggressive investors can consider short - selling with a light position and watch for opportunities to add positions due to favorable policies [3]. 3. Summary by Directory 3.1 Steel 3.1.1 Price - The Shanghai rebar spot price fluctuated, with the rebar 01 contract rising 9 to close at 3046. The spot price in East China was 3190 yuan/ton, down 20 week - on - week [10]. - The Shanghai hot - rolled coil spot price also fluctuated [9]. 3.1.2 Supply - The blast - furnace operation of 247 steel mills in China was basically stable. The blast - furnace operating rate was 84.71%, up 0.44 percentage points week - on - week. The iron - making capacity utilization rate was 89.94%, down 0.39 percentage points week - on - week. The daily average hot - metal output was 239.9 tons, down 1.05 tons week - on - week [13]. - The average capacity utilization rate of 90 independent EAF steel mills was 52.3%, down 0.91 percentage points week - on - week. It is expected that the EAF production will decline slightly [21]. - The supply of five major steel products was 865.32 tons, up 8.37 tons week - on - week. Rebar production increased by 5.91 tons, and hot - rolled coil production increased slightly by 0.62 tons [24]. 3.1.3 Demand - The weekly apparent consumption of five major steel products was 892.73 tons, up 2.2% week - on - week. Building materials consumption increased by 4.4%, and plate consumption increased by 1.1%. The demand for building steel increased due to faster construction progress, but there may be a weakening pressure in the off - season [27]. - For hot - rolled coils, domestic demand was weak, and foreign demand was strong. After the National Day, the demand for derivatives such as cold - rolled and galvanized coils was weak, but overseas orders were still strong [30]. 3.1.4 Profit - The steel mill profitability rate was 47.62%, down 7.79 percentage points week - on - week. The second round of coke price increase was implemented, strengthening cost support. The average profit of 76 independent EAF building steel mills was - 151 yuan/ton, and the off - peak electricity profit was - 55 yuan/ton [35]. 3.1.5 Inventory - Rebar mill inventory was basically flat, with a cumulative decrease of 0.01 tons. Social inventory decreased by 18.93 tons week - on - week [39]. - Hot - rolled coil mill inventory decreased by 0.5 tons, and social inventory decreased by 3.77 tons [42]. 3.1.6 Basis - The rebar 01 contract basis was 144, narrowing 29 from last week. The hot - rolled coil 01 basis was 30, narrowing 16 from last week. The basis of both products showed a narrowing trend [45]. 3.1.7 Inter - period Spread - The rebar 1 - 5 spread was - 63, with the inversion deepening by 7. The hot - rolled coil 1 - 5 spread was - 15, with the inversion narrowing by 5. Both products basically maintained an inverted level [48]. 3.1.8 Inter - product Spread - The futures spread between hot - rolled coil and rebar widened significantly, from 167 to 204 for the main contracts. The spot spread in Shanghai widened from 40 to 90, mainly due to the more obvious rebound of hot - rolled coil spot prices [52]. 3.2 Iron Ore 3.2.1 Price - The iron ore futures price fluctuated, with the 01 contract closing flat at 771. The spot price of PB fines at Rizhao Port rose 3 to 781 yuan/ton [57]. 3.2.2 Supply - Global iron ore shipments increased week - on - week, reaching 3333.5 tons. The weekly average shipments from Australia were 1960.2 tons, and from Brazil were 833.7 tons. The arrivals at 47 ports were 2676.3 tons, down 468 tons week - on - week [60][66]. 3.2.3 Demand - The daily average hot - metal output of 247 steel mills was 239.9 tons, down 1.1 tons week - on - week. The daily average spot trading volume at major Chinese ports was 125.3 tons, up 15.7 tons week - on - week [69][73]. 3.2.4 Port Inventory - The iron ore inventory at 47 ports was 15109.49 tons, up 148 tons week - on - week, lower than the same period last year [76]. 3.2.5 Downstream Inventory - As of September 29, the total imported iron ore inventory of steel mills was 9079.2 tons, up 96 tons week - on - week [79]. 3.2.6 Shipping - The freight from Brazil to Qingdao was 23.695 dollars, down 0.87 dollars week - on - week. The freight from Australia to Qingdao was 10.405 dollars, down 0.08 dollars week - on - week [82]. 3.2.7 Spread - The iron ore 1 - 5 spread was 20.5, down 0.5 week - on - week. The 01 contract basis was 53, widening 4 week - on - week [85]. 3.3 Strategy Recommendation - Keep holding short positions in iron ore futures - Consider shorting rebar 01 and going long on iron ore 01 for arbitrage - Pay attention to the opportunity of the hot - rolled coil 01 basis widening and increase short positions on the futures market appropriately. No need to focus on the iron ore 01 basis widening as the upside is limited [4]

Group 1: Hot News - China's President Xi Jinping will visit South Korea from October 30 to November 1 to attend the 32nd APEC Economic Leaders' Meeting and conduct a state visit [2] - The Ministry of Industry and Information Technology is seeking opinions on iron - making and steel - making capacity replacement ratios, with a minimum of 1.5:1 in most cases and equal - volume replacement in three scenarios [2] - US CPI in September increased slightly less than expected, which may pave the way for the Fed to cut interest rates next week. The CPI rose 0.3% month - on - month in September and 3.0% year - on - year, while core CPI rose 0.2% month - on - month and 3.0% year - on - year [2] - China and the US held economic and trade consultations in Kuala Lumpur from October 25 - 26, and reached preliminary consensus on multiple important economic and trade issues [2] - The People's Bank of China will conduct 900 billion yuan of MLF operations on October 27, 2025 [2] Group 2: Key Focus - Key commodities to focus on include coking coal, coke, soybean meal, Shanghai copper, and Shanghai gold [3] Group 3: Holiday Overseas Market Performance - Commodity futures sector performance: Non - metallic building materials rose 2.95%, precious metals 30.89%, oilseeds and oils 9.67%, soft commodities 2.65%, non - ferrous metals 22.02%, coal - coking - steel - ore 13.28%, energy 3.00%, chemicals 10.74%, grains 1.13%, and agricultural and sideline products 3.66% [3] Group 4: Sector Position - The document shows the position changes of commodity futures sectors in the past five days, but specific data is presented graphically [4] Group 5: Performance of Major Asset Classes - Equity: Shanghai Composite Index rose 0.71% daily, 1.74% monthly, and 17.86% annually; other indices like S&P 500, Hang Seng Index also have corresponding performance data [5] - Fixed - income: 10 - year, 5 - year, and 2 - year treasury bond futures have different daily, monthly, and annual performance [5] - Commodity: CRB Commodity Index, WTI crude oil, London spot gold, LME copper, and Wind Commodity Index have their respective performance data [5] - Other: US Dollar Index and CBOE Volatility Index have corresponding performance [5] Group 6: Trends of Major Commodities - The document presents the trends of various commodities such as BDI, CRB spot index, WTI crude oil, London spot gold, LME copper, etc., through graphs [7]

Core Viewpoint - The technology stocks and cyclical sectors are showing strong performance, with the Shanghai Composite Index reaching a new high of 3991.35 points this year [1]. Technology Sector - Technology stocks led the market in the morning, particularly in the semiconductor and computing power sectors, with notable performances from companies like Xinyi Technology and Zhongji Xuchuang, both reaching historical highs [1]. - Xinyi Technology's stock rose by 8.27%, with a trading volume of 18.114 billion yuan and a market capitalization of 401.37 billion yuan [1]. - Zhongji Xuchuang's stock increased by 3.34%, with a trading volume of 16.467 billion yuan and a market capitalization of 56.723 billion yuan [1]. - The combined market capitalization of these two leading companies in the computing power sector is approximately 968.6 billion yuan [1]. Cyclical Sector - The cyclical sectors, including steel, non-ferrous metals, coal, and electricity, experienced significant gains, reflecting a classic "coal, color, steel, and electricity" market trend [1][3]. - The steel sector saw substantial increases, with companies like Changbao Co. and Xinxing Ductile Iron Pipes achieving notable stock price surges [3]. - The steel sector index rose by 3.09%, with specific stocks like Anyang Iron & Steel and Changbao Co. increasing by 9.96% and 9.95%, respectively [4]. - The Ministry of Industry and Information Technology has proposed a draft for the implementation of capacity replacement in the steel industry, which aims to strengthen capacity constraints and improve long-term supply-demand expectations [6]. - The coal sector also showed positive movement, with stocks like Zhengzhou Coal Electricity and Shanghai Energy experiencing significant gains [8]. Market Performance - As of the morning close, the Shanghai Composite Index rose by 1.04%, the Shenzhen Component Index increased by 1.26%, and the ChiNext Index climbed by 1.54% [1].

Investment Rating - The report maintains a "Buy" recommendation for several steel companies, including Hualing Steel, Baosteel, Nanjing Steel, and others, indicating a positive outlook for the sector [3][3][3]. Core Views - The revision of the capacity replacement plan by the Ministry of Industry and Information Technology is expected to improve the supply-demand dynamics in the steel industry marginally. The new draft includes stricter compliance requirements for capacity replacement, which may lead to a more regulated market [3][3]. - The report notes a decrease in steel profits, with specific margins for rebar, hot-rolled, and cold-rolled steel declining by 7, 17, and 23 yuan per ton, respectively, while electric arc furnace steel margins increased by 1 yuan per ton [1][1][1]. - Steel production increased to 8.65 million tons, with a notable rise in rebar production, while total inventory decreased by 260,100 tons, indicating a tightening market [2][2][2]. Summary by Sections Price Trends - As of October 24, 2025, the price of 20mm HRB400 rebar in Shanghai was 3,190 yuan per ton, down 20 yuan from the previous week. Hot-rolled steel increased by 20 yuan to 3,300 yuan per ton, while cold-rolled steel rose by 10 yuan to 3,780 yuan per ton [1][12][13]. Production and Inventory - The total production of the five major steel products reached 8.65 million tons, an increase of 83,700 tons week-on-week. The total inventory of these products decreased by 260,100 tons to 1,098.5 million tons [2][2][2]. Investment Recommendations - The report recommends focusing on companies within the steel sector, particularly those that are expected to benefit from the revised capacity replacement regulations. Specific companies highlighted include Hualing Steel, Baosteel, Nanjing Steel, and others across various segments [3][3][3].

Group 1 - China National Building Material (CNBM) shares rose over 6%, reaching HKD 5.99 with a trading volume of HKD 136 million [1] - The company issued a profit warning, expecting a profit of approximately RMB 2.95 billion for the nine months ending September 30, 2025, compared to a loss of RMB 684 million in the same period last year [1] - The expected profit increase is attributed to lower sales costs of cement and ready-mixed concrete, higher selling prices and lower costs of fiberglass, increased sales of wind turbine blades and coatings, higher profits from joint ventures, and increased net income from fair value changes of financial assets [1][1][1] Group 2 - The Ministry of Industry and Information Technology held a meeting to discuss growth stability in the cement industry, emphasizing the role of leading enterprises in implementing capacity replacement and regulation policies [1] - By the end of 2025, companies are required to develop capacity replacement plans for excess registered capacity, promoting alignment between actual and registered capacity [1] - Industry associations are encouraged to enhance self-discipline, conduct supply-demand balance research, organize staggered production, and provide average cost research to assist operators in reasonable pricing and prevent unfair competition [1][1][1]

Group 1 - China National Building Material (03323) shares rose over 6%, currently up 6.02% at HKD 5.99, with a trading volume of HKD 136 million [1] - The company issued a profit warning, expecting a profit of approximately RMB 2.95 billion for the nine months ending September 30, 2025, compared to a loss of approximately RMB 684 million in the same period last year [1] - The expected profit increase is primarily due to lower sales costs of cement and ready-mixed concrete, higher sales prices and lower costs of fiberglass, increased sales of wind turbine blades and coatings, higher profits from joint ventures, and increased net income from changes in the fair value of financial assets recognized in profit or loss, partially offset by a decline in cement sales [1] Group 2 - The Ministry of Industry and Information Technology held a meeting to discuss growth stability in the cement industry, emphasizing the role of leading enterprises in implementing capacity replacement and regulation policies [1] - By the end of 2025, companies are required to develop capacity replacement plans for excess registered capacity, promoting alignment between actual and registered capacity [1] - Industry associations are encouraged to enhance self-regulation, conduct supply-demand balance research, organize staggered production in the cement industry, and provide average cost research to assist operators in reasonable pricing, preventing unfair competition such as selling below cost [1]