Investment Rating - The report suggests focusing on investment opportunities in the fiberglass and cement industries due to improving profitability, while selecting stocks with alpha characteristics in the consumer building materials and early-cycle sectors [2][5]. Core Insights - The building materials industry has seen a narrowing revenue decline and notable profit improvements, particularly in the cement and fiberglass sectors, with overall revenue for sample companies decreasing by 4.1% year-on-year to 277.57 billion yuan, while net profit increased by 38.9% to 14.82 billion yuan [11][12]. - The cement industry has shown significant recovery, with a revenue of 118.8 billion yuan, a decline of 7.5%, and a net profit of 5.4 billion yuan, reflecting a year-on-year increase of 1110.5% [24][29]. - The fiberglass sector reported a revenue of 31.1 billion yuan, up 20.9%, and a net profit of 3.29 billion yuan, up 127.0%, indicating a strong recovery driven by price improvements and growth in special fabric business [6][38]. Summary by Sections 1. Industry Revenue Decline Narrowing, Cement and Fiberglass Perform Well - Sample companies in the building materials sector achieved a total revenue of 277.57 billion yuan in the first half of 2025, with a year-on-year decline of 4.1%, a significant improvement compared to a 10.7 percentage point decline in 2024 [11][12]. - The overall net profit for the industry turned positive, reaching 14.82 billion yuan, compared to a 50.8% decline in 2024 [11][12]. 2. By Sector: Cement and Fiberglass Recovery, Consumer Building Materials Seek Alpha 2.1 Cement: Bottom Recovery Becoming Certain - The cement industry has shown a significant improvement, with a revenue of 118.8 billion yuan and a net profit of 5.4 billion yuan, reflecting a year-on-year increase of 1110.5% [24][29]. - The demand for cement remains in a declining trend, but the rate of decline has slowed [24]. 2.2 Fiberglass: Profitability Out of Undervaluation, Steady Recovery Expected - The fiberglass sector reported a revenue of 31.1 billion yuan, up 20.9%, and a net profit of 3.29 billion yuan, up 127.0%, with most companies in the sector achieving double-digit revenue growth [6][38]. 2.3 Consumer Building Materials: Revenue Decline Narrowing, Some Companies Show Strong Alpha - The consumer building materials sector saw a revenue of 68.76 billion yuan, down 2.7%, and a net profit of 4.35 billion yuan, down 13.2%, with some companies like Keda Manufacturing and Three Trees showing strong performance [6][12]. 2.4 Glass: Photovoltaic Glass Experiences Phase Recovery, Building Glass Still Under Pressure - The glass industry faced challenges, with a revenue of 24.6 billion yuan, down 17.0%, and a net profit of 1 billion yuan, down 60.3%, indicating ongoing pressure from weak real estate completions [6][12]. 2.5 Early Cycle: Overall Pressure, Leading Companies Recover First - The early-cycle sector remains under pressure, but leading companies like Subote have achieved revenue and profit growth, focusing on major projects in the western regions [7][12].

Group 1 - The core viewpoint is that actively managed equity funds are regaining attention and performance after years of underperformance, with significant returns observed in 2023 [2][3] - As of August 6, 2023, the Dongcai Ordinary Stock Fund Index and the Mixed Equity Fund Index both exceeded a 16% increase, outperforming passive index funds and fixed-income funds [3] - Nearly 10 actively managed equity funds have doubled their net value this year, with notable funds like Huazhang Medical Industry Selected Mixed Fund seeing a 130% increase in net value [3][4] Group 2 - Despite some actively managed funds experiencing significant inflows, the overall scale of these funds has declined, with a nearly 10 billion yuan drop in total scale in Q2 2023 [4] - The market's rapid changes and sector rotations have increased investment difficulty, with industry rotation cycles shortening to about two months [5][6] - Fund managers are facing higher demands for timely and precise adjustments to their portfolios due to frequent shifts in market sentiment and investment noise [5][6] Group 3 - The investment strategy has shifted from relying on broad market trends to focusing on individual stock selection, with a notable decline in the concentration of holdings in top sectors and stocks [8][9] - Fund managers are increasingly looking for opportunities in smaller, innovative companies, particularly in the pharmaceutical sector, which are on the verge of value reassessment [9][10] - The industry is emphasizing the importance of enhancing research capabilities and establishing a robust investment research framework to adapt to the evolving market landscape [10]