Core Viewpoint - The construction materials sector is experiencing a strong upward trend, with significant increases in stock prices and ETF performance, indicating a potential recovery and investment opportunity in the industry [1][2]. Group 1: Market Performance - As of February 11, 2026, the CSI All Construction Materials Index rose by 1.23%, with notable gains from companies such as Qihang Group (up 4.17%) and Shengfeng Cement (up 3.91%) [1]. - The Construction Materials ETF (159745) increased by 1.08%, reaching a latest price of 0.75 yuan, and has seen a cumulative rise of 2.35% over the past week [1]. - The ETF recorded a turnover rate of 4.41% with a transaction volume of 100 million yuan, and an average daily transaction volume of 253 million yuan over the past week, ranking first among comparable funds [1]. Group 2: Fund Flows and Leverage - The Construction Materials ETF experienced a net outflow of 39.68 million yuan recently, but over the past five trading days, there were net inflows on four days, totaling 474 million yuan, with an average daily net inflow of 9.47 million yuan [1]. - Leverage funds are increasingly being allocated to the sector, with a net purchase of 1.17 million yuan in financing on the previous trading day and a latest financing balance of 37.40 million yuan [1]. Group 3: Sector Outlook - The consumption of construction materials is showing signs of independence from the real estate sector, with market focus on whether real estate transaction data post-Spring Festival will continue to exceed expectations [1]. - Guotai Junan Securities suggests that the leading companies in the construction and real estate chain are likely to benefit from policy support, improving sales expectations and potentially leading to new orders and investment [2]. - The construction materials ETF has seen a net value increase of 28.66% over the past two years, outperforming comparable funds [2]. Group 4: Risk and Recovery Metrics - The Construction Materials ETF has a Sharpe ratio of 1.29 over the past year, indicating a favorable risk-adjusted return [3]. - The maximum drawdown for the ETF this year is 5.48%, with a recovery time of just 2 days, the fastest among comparable funds [3]. Group 5: Fee Structure and Tracking Accuracy - The management fee for the Construction Materials ETF is 0.50%, and the custody fee is 0.10% [4]. - The ETF has a tracking error of 0.065% over the past six months, the highest tracking precision among comparable funds [4]. - The CSI All Construction Materials Index includes major companies such as Conch Cement and Dongfang Yuhong, with the top ten stocks accounting for 61.6% of the index [4].

Investment Rating - The report maintains an "Overweight" rating for the construction materials sector [1]. Core Views - The real estate chain is expected to see a valuation recovery in 2026, with a potential rebound driven by policy expectations and market dynamics. Key stocks to watch include high-dividend companies and those in the export sector [2]. - The technology sector is highlighted as a priority, with domestic semiconductor development expected to accelerate, benefiting cleanroom engineering and related companies [2]. - Consumer performance remains subdued, but cost-cutting measures are showing positive effects, indicating that the clearing phase in the real estate chain is nearing completion [2]. - The report emphasizes the importance of global trade stability and the potential for fiscal expansion in major economies, which could positively impact sectors like AI and innovative pharmaceuticals [2]. Summary by Sections 1. Construction Materials Fundamentals and High-Frequency Data - Cement prices remain stable at 347.7 CNY/ton, unchanged from the previous week but down 52.2 CNY/ton year-on-year. The average cement inventory ratio is 59.4%, up 0.5 percentage points week-on-week [6][15]. - The average daily cement shipment rate is 29.5%, down 10.4 percentage points from the previous week but up 16.1 percentage points year-on-year [23][25]. - Glass prices are slightly up at 1138.8 CNY/ton, but down 257.2 CNY/ton compared to the same period last year. Inventory levels are at 4,977 million weight boxes, down 9,000 from last week but up 1,188,000 from last year [49][46]. 2. Industry Dynamics Tracking - The report notes that the cement industry is undergoing supply-side adjustments, with a focus on eliminating outdated capacity. This is expected to improve the utilization rate of clinker capacity [10]. - The glass industry is facing a supply contraction, which may provide price elasticity in 2026. However, the current demand is weak, and inventory levels remain high [10]. - The fiberglass sector is projected to see stable growth in demand, particularly in wind power and new applications, despite a general decline in profitability [10]. 3. Weekly Market Review and Sector Valuation - The construction materials sector saw a weekly increase of 9.23%, outperforming the Shanghai and Shenzhen 300 index, which decreased by 0.62% [6]. - The report suggests that the valuation of leading companies in the sector is at historical lows, indicating potential for recovery as industry policies take effect [10].

Investment Rating - The report maintains an "Overweight" rating for the construction materials industry [1]. Core Views - The real estate chain is expected to see a valuation recovery in 2026, with a potential rebound driven by policy expectations and market dynamics [2]. - The report highlights several sectors for investment focus, including high-dividend stocks, export-oriented industries, and home improvement consumption [2]. - The technology sector is emphasized, particularly in domestic semiconductor development and AI applications, which are projected to grow rapidly [2]. - The report indicates that the performance of the real estate chain remains subdued, but cost-cutting measures are showing positive effects [2]. - The global trade environment is expected to stabilize, with fiscal expansion in major economies supporting sectors like AI and innovative pharmaceuticals [2]. Summary by Sections 1. Construction Materials Fundamentals and High-Frequency Data - Cement prices remain stable at 347.7 CNY/ton, unchanged from the previous week but down 52.2 CNY/ton year-on-year [6][15]. - The average cement inventory ratio is 59.4%, up 0.5 percentage points from last week and up 3.1 percentage points from the same period last year [23]. - The average cement shipment rate is 29.5%, down 10.4 percentage points from last week but up 16.1 percentage points year-on-year [23]. 2. Industry Dynamics Tracking - The report notes that the cement industry is undergoing supply-side adjustments, with a focus on eliminating outdated capacity [10]. - The glass market is experiencing price stability, with average prices for float glass at 1138.8 CNY/ton, reflecting a slight increase from the previous week but a significant decrease from last year [46]. - The fiberglass sector is expected to see stable demand growth, particularly in wind power and new applications, with effective capacity projected to increase by 6.9% in 2026 [10]. 3. Weekly Market Review and Sector Valuation - The construction materials sector saw a weekly increase of 9.23%, outperforming the Shanghai and Shenzhen 300 index [6]. - The report suggests that the valuation of leading companies in the construction materials sector is at historical lows, indicating potential for recovery as industry policies take effect [10]. - Recommendations include companies like China National Building Material and Conch Cement, which are expected to benefit from improved industry dynamics and overseas market expansion [10].