Core Insights - The report maintains a positive outlook on the building materials industry, emphasizing the potential for growth driven by fire safety demand following recent incidents [4][6]. Group 1: Cement Industry - Cement prices have shown fluctuations, with some regions experiencing price declines while others, particularly in the south, are seeing price increases due to environmental pressures [6]. - The average number of days for staggered production among cement companies in China increased by 15 days year-on-year to 177 days in 2025, indicating a tightening supply [6]. - Long-term demand for cement is expected to stabilize, with a focus on supply-side reforms aimed at capacity control and carbon emission restrictions [6]. - The report highlights significant growth potential in overseas markets, particularly in Africa and Central Asia, where demand is driven by population growth and infrastructure needs [6]. - Companies like Huaxin Cement and Conch Cement are recommended for their high dividend yield and potential for overseas revenue growth [6]. Group 2: Consumer Building Materials - The demand for fireproof materials and equipment is anticipated to rise, particularly following fire safety inspections mandated by authorities [6]. - The report outlines the classification of building materials based on combustion performance, with a focus on non-combustible and fire-resistant materials [6]. - Companies in the fire safety sector, such as Qingniao Fire Protection, are expected to benefit from increased demand for equipment upgrades and stricter regulations [6]. - The report notes that the domestic household fire safety market is poised for rapid growth, supported by increasing awareness and regulatory developments [6].