Core Viewpoint - The renovation and building materials sector experienced a slight increase, closing at 15,983.6 points with a growth rate of 0.6% [2] Group 1: Stock Performance - Yong'an Forestry led the sector with a closing price of 10.21 CNY per share, marking a rise of 10.02% [2] - Leizhi Group closed at 5.66 CNY per share, with a growth of 4.24%, ranking second in the sector [2] - Sophia closed at 14.17 CNY per share, achieving a growth of 4.19%, ranking third [2] - Haolaike led the declines with a closing price of 13.83 CNY per share, down by 10.02% [2] - Huaci Co. closed at 20.2 CNY per share, with a decline of 9.98%, ranking second in losses [2] - Wanli Stone closed at 34.72 CNY per share, down by 6.01%, ranking third in losses [2] Group 2: Market Outlook - Dongwu Securities indicated that the improvement in the market structure will become more evident due to the effects of good housing and urban renewal policies on both supply and demand [2] - The application of AI is expected to accelerate the development of smart home appliances by 2026, driven by the matching of models and computing power [2]

Investment Rating - The report maintains an "Overweight" rating for the construction materials industry [1] Core Views - Employment data shows improvement, and there are expectations for policy support [1] - The construction materials sector has shown resilience with a weekly increase of 0.97%, outperforming the Shanghai and Shenzhen 300 Index by 2.05% [3] - The cement market is experiencing a slight recovery in demand, particularly in southern regions, while prices are expected to remain stable [5][10] - The glass market is under pressure with high inventory levels and weak demand, but medium-term supply-side adjustments are anticipated [41][43] - The fiberglass sector is expected to see improved profitability due to supply constraints and increasing demand from new applications [5] Summary by Sections 1. Bulk Construction Materials Fundamentals and High-Frequency Data - **Cement**: The national average price for high-standard cement is 352.3 RMB/ton, up 1.2 RMB/ton from last week but down 74.8 RMB/ton from the same period last year. The average cement inventory level is 69.8%, with an average shipment rate of 46.2% [11][18] - **Glass**: The average price for float glass is 1195.4 RMB/ton, down 1.9 RMB/ton from last week and down 258.4 RMB/ton year-on-year. Inventory levels are at 5962 million heavy boxes, a decrease of 54 million from last week [43][45] - **Fiberglass**: Prices for fiberglass remain stable, with a focus on high-end products. The market is expected to see improved profitability as supply constraints persist [5] 2. Industry Dynamics Tracking - The construction materials sector is expected to benefit from policy support and improving economic indicators, with a focus on companies involved in the export supply chain and home renovation [3][5] - The report highlights the importance of technological advancements and domestic semiconductor development, recommending companies in the cleanroom engineering sector [5] 3. Weekly Market Review and Sector Valuation - The construction materials sector has shown a positive trend compared to broader market indices, indicating potential for further growth [3] - The report suggests that the cement industry is at a historical low in terms of price-to-book ratios, presenting opportunities for investment as policies are expected to support recovery [5][10]