Investment and Production Indicators - The overall performance of investment-related high-frequency data in the first week after the holiday was weaker than the same period last year, with only the full steel and semi-steel tire operating rates better than last year's levels[2] - The operating rate for asphalt sample enterprises was 21.4%, up 0.6 percentage points week-on-week, but down 24.9% year-on-year[9] - The national electric furnace operating rate was 26.28%, down 5.77 percentage points week-on-week, and down 53.4% year-on-year[11] - The capacity utilization rate for steel mills was 86.09%, down 0.24 percentage points week-on-week, and down 1.1% year-on-year[44] Production and Price Trends - The average daily crude steel production in mid-February was 2.029 million tons, an increase of 83,000 tons from early February, but down 5.7% year-on-year[72] - The price index for rebar fell by 0.3 yuan/ton to 3288.2 yuan/ton[116] - The average price of cement in East China remained stable at 412 yuan/ton, while the price in Southwest China dropped by 8 yuan/ton to 485 yuan/ton[107] - The average price of lithium carbonate rose to 167,000 yuan/ton, an increase of 27,000 yuan/ton year-on-year, reflecting a growth of 118.3%[142] Real Estate and Consumption Insights - The number of signed commercial housing contracts in 30 cities was still lower than the same period last year, despite a positive trend in second-hand housing listing prices starting from the second week of January[2] - Domestic and international flight numbers post-holiday were higher than last year, with domestic flights exceeding 100,000 for four consecutive weeks, indicating a recovery in travel demand[2] - Consumer demand for goods and services during the holiday period was better than last year, suggesting a significant increase in consumption growth for the first two months compared to the previous year[2]

Investment Rating - The investment rating for the construction materials industry is "Positive" (maintained) [5] Core Insights - The electronic fabric sector is experiencing an upward trend, with potential price increases due to supply constraints and strong demand. Key companies to watch include China Jushi, Honghe Technology, and Zhongcai Technology [6] - The real estate chain is expected to benefit from policy expansions and urban renewal initiatives, with companies like Sankeshu, Beixin Building Materials, and Dongfang Yuhong being highlighted for investment [6] - The average price of 42.5 cement nationwide is 338.5 RMB/ton, showing a month-on-month decrease of 2.7 RMB/ton and a year-on-year decrease of 49.0 RMB/ton [17] - The average price of 5mm float glass is 1254.0 RMB/ton, with a month-on-month increase of 16.5 RMB/ton but a year-on-year decrease of 250.9 RMB/ton [38] - The average price of electronic yarn is 10550.0 RMB/ton, reflecting a month-on-month increase of 50.0 RMB/ton and a year-on-year increase of 1900.0 RMB/ton [50] Summary by Sections Section 1: Market Tracking - The construction materials index increased by 4.4% during the reporting period, outperforming the Shanghai Composite Index, which rose by 2.0% [10] - The top five gainers in the sector included Zaiseng Technology (+21.7%) and Qinglong Pipeline (+18.2%) [10] Section 2: Data Tracking Cement - The national average price for 42.5 cement is 338.5 RMB/ton, with a month-on-month decrease of 2.7 RMB/ton and a year-on-year decrease of 49.0 RMB/ton [17] - The cement inventory ratio is 64.1%, with a month-on-month decrease of 1.3 percentage points [17] Float Glass - The average price for 5mm float glass is 1254.0 RMB/ton, with a month-on-month increase of 16.5 RMB/ton [38] - Inventory levels for float glass increased by 4.3% month-on-month [38] Photovoltaic Glass - The average price for 2.0mm coated photovoltaic glass is 10.7 RMB/sqm, unchanged month-on-month [43] - Inventory days for photovoltaic glass increased by 19.3% month-on-month [43] Glass Fiber - The average price for non-alkali glass fiber yarn is 4565.0 RMB/ton, unchanged month-on-month [50] - The average price for electronic yarn is 10550.0 RMB/ton, reflecting a month-on-month increase of 50.0 RMB/ton [50] Carbon Fiber - The average price for large tow carbon fiber is 72.5 RMB/kg, unchanged month-on-month [53] - The average price for small tow carbon fiber is 95.0 RMB/kg, unchanged month-on-month [53]

Industry Investment Rating - The investment rating for the construction materials industry is "Outperform the Market" and is maintained [1]. Core Insights - The report highlights that the electronic cloth sector has experienced four rounds of price increases since October 2025, with a price increase of 0.5-0.6 yuan/meter in early February 2026, driven by strong demand from AI-related products and a supply shortage [3]. - The cement industry is gradually recovering post-Spring Festival, with national demand expected to improve, although the construction market remains weak. Cement production in December 2025 was 144 million tons, down 6.6% year-on-year [8]. - The glass industry is facing continuous demand pressure, with high inventory levels among intermediaries. Despite some supply-side improvements due to production line repairs, prices are expected to remain low in the short term [15]. - The fiberglass sector is benefiting from AI-driven demand, with expectations for significant growth in both volume and price, particularly for low-dielectric products [4]. Summary by Sections Cement - National demand is gradually recovering, with a weak performance in the construction market and regional disparities in infrastructure demand. The cement production in December 2025 was 144 million tons, a 6.6% year-on-year decline [8]. - The price trend for cement is expected to be stable and weak in the near term, with a focus on gradual recovery post-holiday [8]. Glass - The glass industry is under pressure with demand declining, and inventory levels are high among intermediaries. The report anticipates that prices will remain low due to ongoing supply-demand imbalances [15]. Fiberglass - The fiberglass sector is experiencing a surge in demand driven by AI applications, with expectations for a significant increase in both volume and price for various product categories [4]. Consumer Building Materials - The industry is seeing a bottoming out of profitability, with strong calls for price increases due to competitive pressures. Major categories like waterproofing, coatings, and gypsum boards are expected to see price hikes in 2026 [4].

1. Report Industry Investment Rating No information provided in the report. 2. Core Viewpoint of the Report As of February 25, 2026, the closing price of the national carbon market carbon emission allowance (CEA) was 81.00 yuan/ton, remaining flat compared to the previous month and down 9.75% compared to the same period last year. In the past 30 trading days, the average trading volume of national carbon emission allowances was 463,000 tons, a month-on-month decrease of 1.465 million tons from the previous period, indicating a decline in the activity of the carbon emission spot market [3][32][68]. 3. Summary According to Relevant Catalogs 3.1 Industry News - The Ministry of Ecology and Environment issued a notice on the work related to the national carbon emission trading market in 2026, including strengthening the management of the list of key emission units, data quality, quota allocation and settlement, and the management requirements for other key industries [9]. - The EU's Carbon Border Adjustment Mechanism (CBAM) officially came into effect on January 1, 2026. The EU's setting of a significantly high default value for China's product carbon emission intensity and plans to expand the product coverage range are unfair and discriminatory, and China firmly opposes these practices [30][31]. 3.2 National Carbon Market Carbon Emission Allowance (CEA) As of February 25, 2026, the closing price of CEA was 81.00 yuan/ton, remaining flat compared to the previous month and down 9.75% compared to the same period last year. In the past 30 trading days, the average trading volume was 463,000 tons, a month-on-month decrease of 1.465 million tons, indicating a decline in market activity [32]. 3.3 Carbon Price Influence Factor Analysis 3.3.1 Energy Price - As of February 25, 2026, the price of steam coal at Qinhuangdao Port showed an increase compared to the end of the previous month but a decrease compared to the end of 2025. The pithead price of steam coal also showed a similar trend. The coke price remained flat compared to the end of the previous month but decreased compared to the end of 2025. The LNG ex-factory price index decreased compared to the previous period, and the European natural gas spot price decreased compared to the end of the previous month and the end of 2025 [35][36][37]. 3.3.2 Energy Consumption In 2025 from January to December, the cumulative apparent consumption of natural gas in the country was 426.55 billion cubic meters, 500 million cubic meters more than the previous year; the cumulative apparent consumption of coke was 496.7758 million tons, 15.706 million tons more than the previous year; the total apparent consumption of gasoline, kerosene, and diesel was 376.7113 million tons, 6.2874 million tons less than the previous year [40]. 3.3.3 Domestic Carbon Emission Structure China's total carbon emissions have exceeded 10 billion tons, accounting for about one-third of the world's carbon emissions. The largest source of carbon emissions in China is the "Electricity, Steam and Hot Water Production and Supply" industry, followed by the "Ferrous Metal Smelting and Rolling Processing" industry. In terms of energy types, carbon emissions mainly come from the consumption of coal, followed by fuel oil and natural gas [44][51]. 3.3.4 Total Social Electricity Consumption In 2025, the total social electricity consumption was 1,0368.2 billion kWh, a year-on-year increase of 5.0%. The electricity consumption of the tertiary industry and urban and rural residents' living contributed 50% to the growth of electricity consumption. The slowdown in the growth rate of the secondary industry's electricity consumption was in line with China's economic structural transformation [54][55]. 3.3.5 Power Generation Structure In December 2025, the power generation of industrial enterprises above the designated size was 858.6 billion kWh, a year-on-year increase of 0.1%. The total power generation of four types of clean energy accounted for 32.3% of the total power generation, an increase of 2.9 percentage points compared to the same period last year. In 2025, the thermal power generation of industrial enterprises above the designated size showed a year-on-year negative growth for the first time since 2014, indicating a turning point in the development model of the power industry [58][60][61]. 3.4 Conclusion As of February 25, 2026, the closing price of CEA was 81.00 yuan/ton, remaining flat compared to the previous month and down 9.75% compared to the same period last year. The average trading volume decreased month-on-month, indicating a decline in market activity. The price of steam coal showed a short-term strong trend. In 2025, the apparent consumption of natural gas and coke increased, while the total consumption of gasoline, kerosene, and diesel decreased. In December 2025, the total social electricity consumption and the power generation of industrial enterprises above the designated size increased year-on-year, and the proportion of clean energy power generation increased [68][69][71].

Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [1] Core Views - The report highlights that the electronic cloth sector has experienced four rounds of price increases since October 2025, with a price increase of 0.5-0.6 yuan/meter in early February 2026, driven by strong demand from AI-related products and a supply shortage [3] - The cement industry is gradually recovering post-Spring Festival, with demand showing signs of improvement, particularly in the civil market, while the overall capacity is expected to decline under production restriction policies, leading to increased profit elasticity [3] - The glass industry is facing continuous demand pressure due to real estate impacts, with short-term price fluctuations expected to remain low due to high inventory levels among intermediaries [4] - The fiberglass sector is anticipated to see explosive growth driven by AI demand, with a clear upgrade in product structure and a trend of simultaneous volume and price increases [4] - The consumer building materials sector is expected to see profit improvements as prices stabilize after years of competition, with major companies expected to issue price increases in 2026 [4] Summary by Sections Cement - National demand is gradually recovering post-Spring Festival, with a notable decline in cement production of 1.44 billion tons in December 2025, down 6.6% year-on-year [8] Glass - The glass market is under pressure with traditional peak season orders showing limited improvement, and supply-side adjustments are expected to keep prices low in the short term [15] Fiberglass - The demand for electronic yarn is strong, driven by the AI industry, with expectations for simultaneous increases in volume and price due to product upgrades [4] Consumer Building Materials - The sector's profitability has reached a bottom, with strong calls for price increases expected to lead to profit improvements for leading companies in 2026 [4]

1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints - The real - estate market has shown seasonal recovery, and the resumption of work after the Spring Festival in 2026 is faster than the same period in the lunar calendar last year. The construction and chemical industries in the upstream of the black industry chain have relatively better start - up performance [2][14]. - During the Spring Festival holiday, residents' travel and consumption were good, but the movie - watching enthusiasm was lower than the same period last year. After the holiday, the sales of new and second - hand houses have rebounded. However, the latest land auction data is average [5][12][13]. 3. Summary by Relevant Catalogs 3.1 Financial Market - The interest - rate bond index weakened, and the precious metal index had a significant increase [15][17]. 3.2 Industrial Production 3.2.1 Power Generation - The daily coal consumption of power plants in eight southern provinces rebounded, and the thermal coal price increased [21][22]. 3.2.2 Coking - The start - up rate of coking enterprises increased rapidly, and the prices of coking coal and coke both decreased [23][24]. 3.2.3 Steel - The blast - furnace start - up rate increased, and the spot and futures prices of iron ore and rebar both decreased [26][28]. 3.2.4 Building Materials - The cement price fluctuated slightly, and the inventories of copper and aluminum increased significantly [32]. 3.2.5 Chemical Industry - The start - up rates of methanol and soda ash have recovered, and the crude oil price fluctuated upward [44][45]. 3.2.6 Automobile - The start - up rates of automobile semi - steel tires and all - steel tires both decreased significantly [48][49]. 3.3 Resumption of Work and Production - The resumption rate of 10,692 construction sites nationwide increased by 1.5 percentage points year - on - year in the lunar calendar. The fund availability and worker resumption conditions were better than last year [2][50]. 3.4 Logistics and Transportation 3.4.1 Freight - The highway logistics freight rate index, railway transportation volume, and postal parcel collection volume all fluctuated downward [52][53][55]. 3.4.2 Passenger Transport - The subway passenger volume rebounded, and the number of domestic flights increased significantly [58]. 3.5 Terminal Demand 3.5.1 Credit - The negative spread between bill rediscount and certificates of deposit narrowed, and the rediscount rate of six - month national stock bills increased [57][59][62]. 3.5.2 Real Estate - The transaction areas of new and second - hand houses seasonally rebounded, and the increase rate of the second - hand house listing price index widened [5][63]. 3.5.3 Construction - The apparent demand for rebar decreased significantly, and the proportion of profitable steel mills increased marginally [75][77]. 3.5.4 Consumption - During the Spring Festival, the number of tourists and tourism spending reached record highs, but the movie box office was lower than the same period last year [12][76]. 3.5.5 Export - The CCFI freight rate decreased, and the port cargo throughput decreased significantly [88]

Market Stability - Stability is the current backdrop of the Chinese stock market, with the Shanghai Composite Index recently stabilizing and recovering[7] - The geopolitical situation in the Middle East has limited impact on the index, and the market is expected to show a positive trend[7] - The Chinese government's increasing strength in national power, military, and governance contributes to the current stability of the economy and stock market[7] Economic Outlook - The upcoming National People's Congress is expected to lead to better-than-expected arrangements for deficit rates and local government special bonds, which will stabilize the real estate market[11] - In January and February 2026, the issuance of new special bonds reached CNY 0.83 trillion, a year-on-year increase of 39.6%, which is expected to boost economic activity[11] - The construction resumption rate and funding availability have increased by 1.5% and 3.7% year-on-year, respectively, indicating a positive trend in economic recovery[11] Sector Recommendations - The financial sector, particularly banks and non-bank financial institutions, is recommended for investment due to its stabilizing role in the market[22] - Emerging technologies, especially in AI and autonomous control, are highlighted as key investment areas, with recommendations for sectors like machinery, electronics, and defense[22] - Value sectors such as materials, oil transportation, and chemicals are expected to benefit from the domestic investment recovery and improving physical workload[22] Risk Factors - Potential risks include an unexpected global economic recession and uncertainties in global geopolitical situations[4]

Core Insights - The report maintains a long-term bullish outlook on gold while suggesting short-term attention on oil and copper [2] - A-shares sentiment index is rising, while Hong Kong stocks sentiment index is declining, leading to a bullish position on A-shares and a neutral stance on Hong Kong stocks [2] - Current institutional focus is on basic chemicals and the automotive industry, with a decrease in attention towards non-bank financial sectors [2] A-shares and Hong Kong Stocks Sentiment Tracking - The A-shares sentiment index has increased, and the VIX for the Shanghai 50, CSI 300, CSI 500, and CSI 1000 has decreased, indicating a bullish timing strategy for A-shares [2][5] - The Hong Kong stocks sentiment index has decreased, leading to a neutral timing strategy for the Hang Seng Index [2][14] Institutional Research and Crowding Indicators - Current institutional focus is on the electric power and public utilities and automotive sectors, while attention towards retail and non-bank financial sectors has decreased [26] - Recent increases in institutional attention have been noted in coal, electric power and public utilities, banking, non-bank financials, and media sectors [27] - Several industries, including oil and petrochemicals, non-ferrous metals, steel, basic chemicals, and building materials, are at the threshold of crowding indicators [36][37] A-shares Style and Sector Allocation - The current allocation based on the A-shares industry and style rotation index favors media, electronics, automotive, and agriculture, forestry, animal husbandry, and fishery sectors [42] Commodities - The VIX for gold and silver has decreased from high levels, while copper and oil are experiencing high volatility [44] - The report maintains a long-term bullish outlook on gold due to declining U.S. real interest rates, increased market volatility, rising geopolitical risks, and growing demand for gold [50]

Group 1: Metal Sector - Hongda Co. (600331.SH) is projected to have a net profit of 0.36 billion CNY in 2024, but is expected to incur a loss of 0.80 billion CNY in 2025, with a significant recovery to 4.00 billion CNY in 2026, resulting in a PE ratio of 131.36[17] - Zijin Mining (601899.SH) is forecasted to achieve a net profit of 320.51 billion CNY in 2024, increasing to 913.17 billion CNY by 2026, with a PE ratio dropping from 32.86 to 11.53[17] - Huaxi Nonferrous (600301.SH) is expected to see net profits rise from 6.58 billion CNY in 2024 to 12.69 billion CNY in 2026, with a PE ratio of 32.29[17] Group 2: Construction Materials - Oriental Yuhong (002271.SZ) is projected to have net profits of 1.08 billion CNY in 2024, increasing to 21.94 billion CNY by 2026, with a PE ratio of 19.60[17] - China Jushi (600176.SH) is expected to grow its net profit from 24.45 billion CNY in 2024 to 47.80 billion CNY in 2026, with a PE ratio of 22.65[17] - The construction materials sector is facing a significant supply exit, with 2024 commodity housing sales expected to decline by approximately 47% compared to 2021[44] Group 3: Transportation - YTO Express (600233.SH) is forecasted to achieve net profits of 40.12 billion CNY in 2024, increasing to 50.84 billion CNY by 2026, with a PE ratio of 13.20[17] - COSCO Shipping Energy (600026.SH) is expected to see net profits rise from 40.37 billion CNY in 2024 to 98.19 billion CNY in 2026, with a PE ratio of 10.94[17] Group 4: Chemical Sector - Boyuan Chemical (000683.SZ) is projected to have net profits of 18.11 billion CNY in 2024, decreasing to 23.43 billion CNY by 2026, with a PE ratio of 14.87[17] - Xingfa Group (600141.SH) is expected to see net profits rise from 16.01 billion CNY in 2024 to 24.54 billion CNY in 2026, with a PE ratio of 19.62[17] Group 5: Power and Coal - Longyuan Power (001289.SZ) is forecasted to achieve net profits of 63.45 billion CNY in 2024, with a slight decrease to 61.52 billion CNY by 2026, maintaining a PE ratio of 17.20[17] - Electric Power Investment (002128.SZ) is expected to see net profits rise from 53.42 billion CNY in 2024 to 68.98 billion CNY in 2026, with a PE ratio of 9.98[17]

Investment Rating - The report suggests a positive outlook for the electronic inflation chain and oil chain sectors, indicating potential price increases and strong demand in various materials [1][2][3]. Core Insights - The electronic inflation chain is expected to see price increases in multiple products such as electronic cloth and copper foil due to strong demand from AI materials and new product launches [1][12]. - The oil chain is impacted by rising oil prices, leading to cost adjustments in products like asphalt, with companies like Dongfang Yuhong announcing price hikes of 5%-10% [2][13]. - Companies like Keda, Huaxin, and Leshushi are well-positioned for international expansion into regions like Africa and South America, with significant projects underway [3][14]. Summary by Sections Electronic Inflation Chain - March is anticipated to witness price increases in electronic materials due to strong demand from both AI and non-AI sectors, with successful price transmission expected [1][12]. - The report highlights the ongoing trend of AI displacing traditional production capacities in various segments, including copper foil and electronic cloth [1][12]. Oil Chain - The report outlines two main impacts of rising oil prices: direct cost adjustments in products linked to oil prices and the economic viability of coal chemical alternatives [2][13]. - Companies are advised to monitor price adjustments and capital expenditures in the coal chemical sector as they may provide business growth opportunities [2][13]. International Expansion - The report emphasizes the importance of local manufacturing and demand resonance in international markets, particularly in Africa, where companies are establishing production facilities to meet local needs [3][14]. - Leshushi's inclusion in the Hang Seng Composite Index is noted as a significant milestone, with implications for its market visibility and liquidity [3][14]. Market Performance - The report provides insights into the performance of various construction materials, with cement prices averaging 339 RMB/ton, showing a year-on-year decrease of 52 RMB/ton [4][15]. - The glass market is experiencing price fluctuations, with the average price of float glass at 1164.62 RMB/ton, reflecting a slight increase [4][15]. Price Changes - Cement prices have seen a slight decline due to seasonal factors, while the glass market is characterized by mixed performance across different regions [4][15][26]. - The report indicates that the overall construction material index has shown a positive trend, outperforming the broader market indices [18][22].