Investment Rating - The industry investment rating is "Positive" and maintained [13] Core Viewpoints - The upgrade of AI special glass fiber is accelerating, with a focus on the volume increase of high-end products [6][10] - Cement prices continue to decline, while glass inventory has decreased month-on-month [8][9] - Recommended investment in domestic substitution chains and African chains, with existing leading companies as the main line for the year [10] Summary by Relevant Sections Cement Market - In late June, the average shipping rate of national cement enterprises was 43%, down approximately 0.8 percentage points month-on-month and 2.4 percentage points year-on-year [8] - The national average cement price decreased by 1.0% month-on-month, with most regions experiencing price declines [8][26] - The national cement average price was 357.74 yuan/ton, down 3.71 yuan/ton month-on-month and down 37.90 yuan/ton year-on-year [26] Glass Market - The domestic float glass market saw a slight improvement in transactions, but prices remained stable [9] - The total inventory of monitored provinces was 59 million weight boxes, a decrease of 1.52 million weight boxes, with a decline of 2.51% [38][39] - The national average glass price was 69.17 yuan/weight box, down 0.81 yuan/weight box month-on-month and down 18.17 yuan/weight box year-on-year [39] Special Glass Fiber - China National Materials Technology is a leading domestic supplier of special glass fiber, benefiting from the upgrade trend [7] - The company is expected to achieve a monthly production capacity of 6 million meters by the end of 2026, with a projected performance of approximately 3.8 billion yuan in 2025-2026 [7] - The upgrade from M8 to M9 in copper-clad laminates is expected to drive the scale increase of high-end products [6] Recommended Companies - Recommended companies include China National Materials Technology, Meijia Xincai, and Punaite Co., Ltd. for domestic substitution [10] - Keda Manufacturing is recommended for the African chain, benefiting from local market advantages [10] - The report also highlights the potential of Sanhe Tree and Rabbit Baby in the existing stock chain [10]

Summary of Key Points from Conference Call Industry Overview - The conference call primarily discusses the **glass and fiberglass industry**, with a focus on **electronic cloth** and **photovoltaic glass** sectors [1][2][3][4][5][6][10][16][20]. Core Insights and Arguments Fiberglass Industry - In Q1, the fiberglass industry saw a significant increase in net profit per ton, with companies like **China Jushi** benefiting from price hikes in high-end products, leading to a profit increase of approximately **600 RMB per ton** year-on-year [3][11]. - After April, the fiberglass market experienced a correction due to concerns over export expectations and oversupply of low-end products, with production capacity increasing rapidly [5][10]. - The demand for AI-related products has positively impacted the electronic cloth market, with significant growth in revenue and profit for high-end PCB companies [6][10]. Electronic Cloth Market - The electronic cloth market began to see price increases at the end of February, with general models rising by **0.3 RMB** and specific products increasing from **25-30 RMB** to **30-35 RMB** [4]. - The profitability of low-end stores contributed significantly to the overall performance of companies like **China Jushi** in Q1, with profits exceeding **30 million RMB** from these segments [4]. Photovoltaic Glass Industry - The photovoltaic glass sector is facing challenges, with prices nearing loss margins, particularly for **2.0 coated glass**, which has dropped to **10.5 RMB** including tax [16]. - There are no administrative production cuts in the photovoltaic glass industry, and the future price elasticity will depend on increased demand for components [17][18]. - The industry is currently at a low point, lacking upward catalysts, and any significant improvement will rely on component demand [18][19]. Comparison with Float Glass - The float glass market is performing better than the photovoltaic glass market, with about **30-40%** of companies in the float glass sector experiencing losses, but leading companies still maintaining profitability [20]. - Float glass has a higher bottom price compared to photovoltaic glass due to the different premium rights along the supply chain [21][22]. Other Important Insights - **China Jushi** is expected to see significant growth in Q2 due to improved profitability in low-end products and strong performance in other segments like blades and membranes [11][12]. - The upcoming expert meetings will focus on high-frequency data regarding inventory and sales in the fiberglass industry, which will provide valuable insights into the current market situation [24].

Market Overview - The market experienced fluctuations with mixed performance across the three major indices, with a total trading volume of 1.49 trillion [1] - The innovative drug sector saw a resurgence, with stocks like Angli康 and塞力医疗 hitting the daily limit [1] - Chip stocks continued their strong performance, with companies such as诚邦股份 and凯美特气 also reaching the daily limit [1] - Bank stocks rebounded, with建设银行 and浦发银行 reaching historical highs [1] - The military industry showed localized activity, with stocks like长城军工 and际华集团 hitting the daily limit [1] - Stablecoin concept stocks declined, with吉大正元 hitting the daily limit down [1] Key Highlights Pharmaceutical Sector - The pharmaceutical sector rebounded significantly, with昂立康 hitting the daily limit and reaching a historical high [3] - The National Healthcare Security Administration and the National Health Commission issued measures to support the high-quality development of innovative drugs, including increased support for R&D and inclusion in insurance directories [3][4] - Companies like阳普医疗, 塞力医疗, and山河药辅 also reached the daily limit [3] Chip Sector - The domestic chip sector remained strong, with stocks like诚邦股份, 凯美特气, and常青股份 hitting the daily limit [6] - Reports indicated that Texas Instruments is raising prices for various analog devices by 30%, with some data converters seeing price increases of 100% [6] - The semiconductor industry is entering a new growth cycle driven by AI innovations and electric vehicle developments, which is expected to boost demand for high-performance analog chips [6][8] Glass Fiber Sector - The glass fiber sector saw significant gains, with companies like宏和科技, 中材科技, and山东玻纤 hitting the daily limit [9] - Market rumors suggest that NVIDIA's upcoming Rubin cabinet may utilize quartz cloth with lower dielectric constants, enhancing its application prospects in AI servers [9][10] Military Sector - The military sector showed mixed performance, with some stocks experiencing gains while others remained stable [11] Other Sectors - The electric power, PCB, and brain science sectors showed localized activity, while solid-state batteries and blockchain concepts faced declines [11]

Investment Rating - Industry Rating: Outperform the market (maintained rating) [5] Core Views - The cement industry is accelerating its overseas expansion, particularly in Africa, which is seen as a significant investment opportunity due to its rapid population growth and urbanization [3][20] - The recent performance of the construction materials sector shows a positive trend, with the CITIC construction materials index rising by 2.63% [12] - The report highlights the importance of monetary policy in supporting economic recovery, emphasizing a coordinated approach between monetary and fiscal policies [2][14] Summary by Sections Market Review - The Shanghai and Shenzhen 300 index increased by 1.95%, while the construction materials sector rose by 2.63% [12] - Notable stock performances include Saitex New Materials (+27.0%) and Guotong Shares (+14.2%) [12] Cement Industry Expansion - Recent data shows a decline in property sales in major cities, with a year-on-year decrease of 10.14% [2][15] - Companies like Western Cement and Huaxin Cement are making significant moves in Africa, with Western Cement planning to sell assets in Xinjiang to support its expansion [3][20] - Huaxin Cement's new project in Zambia has successfully increased production capacity, indicating a trend of overseas investment in the cement sector [3] Key Recommendations - The report recommends a focus on companies such as China National Materials, Honghe Technology, Western Cement, Huaxin Cement, and others, which are expected to benefit from the ongoing market dynamics [20][4] - The report suggests that traditional building materials are nearing a cyclical bottom, while new materials are expected to continue their growth trajectory [21]

Investment Rating - The report maintains a "Recommended" rating for the chemical industry, indicating a positive outlook for the sector's fundamentals and expectations for the industry index to outperform the benchmark index [7][93]. Core Insights - The report highlights the impact of escalating geopolitical conflicts on crude oil prices, which have been rising significantly, affecting the chemical sector [2][89]. - The overall performance of the chemical sector saw a decline of 2.49% in the fourth week of June, lagging behind the Shanghai A-share index by 1.98 percentage points [3][15]. - Key stocks that performed well included Keheng Co. (+30.3%) and Jinniu Chemical (+27.43%), while stocks like Jiaao Environmental and Hongyang New Materials faced significant declines [3][15]. Industry Performance - In the fourth week of June, five sub-industries within the chemical sector experienced gains, with the top performers being oil trading (+7.24%) and inorganic salts (+4.2%). Conversely, 26 sub-industries saw declines, with daily chemical products dropping by 8.92% [4][19]. - The dynamic PE ratio for the chemical sector was reported at 24.02 times, which is lower than the average PE of 11.88 times since 2015 [3][15]. Price and Spread Trends - The report noted significant price increases for several products, with Brent crude oil rising by 13.68% and PX by 10.53%. In contrast, liquid chlorine saw a drastic drop of 60% [5][23]. - The report also highlighted substantial changes in price spreads, with the melamine spread increasing by 54.61% and the PX (naphtha-based) spread decreasing by 144.12% [5][39]. Inventory Changes - Notable inventory changes included a decrease in polyester chips by 19.44% and an increase in epoxy propane by 16.49% [6][61]. Recommendations - The report suggests focusing on leading compound fertilizer companies, specifically recommending Xinyangfeng [6].

临近年中把握前置博弈中报窗口，持续推荐下游高景 气/西部结构景气品种 行情回顾 本周沪深 300 跌 0.45%，建材(中信)跌 1.68%，玻纤、玻璃板块取得正收 益。个股中 ，凯盛新 能（+18.0% ），震 安科技 （+17.7% ），石英 股份 （+14.9%），金刚光伏（+11.4%），中材科技（+10.8%），涨幅居前。上周我 们重点推荐组合的表现：西部水泥（-3.7%）、华新水泥（A+H）（-0.7%）、 中国联塑（+1.52%）、中材科技（+10.8%）、青松建化（-2.4%）、高争民爆 （+0.4%）、三棵树（+0.8%）。 临近年中把握前置博弈中报窗口，持续推荐下游高景气/西部结构景气品 种 据 Wind，0614-0620 一周，30 个大中城市商品房销售面积 194.41 万平 米，同比-12.82%。6 月 13 号在北京召开了国务院常务会议，会议强调要 着眼于长远发展，构建好基础制度的根基，"稳中求进、先立后破"，扎实 有力地推进好房子的建设。6 月 16 号，国家统计局发布了 70 个大中城市 商品住宅销售价格变动情况。数据显示，绝大多数城市的住宅价格持续收 紧，尤其是与去年同期 ...

Investment Rating - The report maintains an "Accumulate" rating for the construction materials industry [1] Core Views - The construction materials sector has shown a decline of 1.42% in the past week, underperforming the CSI 300 and the Wind All A Index, which declined by 0.45% and 1.07% respectively [4] - The report suggests that strategic infrastructure projects in the central and western regions may become a focus for investors, particularly in areas like hydropower and major construction projects [4] - The real estate sector is nearing a clearing phase, leading to improved supply dynamics, which may benefit leading companies in the industry [4] Summary by Sections 1. Industry Trends - The construction materials sector has experienced a price drop in cement, with the national average price at 356.8 RMB/ton, down 3.3 RMB/ton from the previous week and 36.0 RMB/ton from the same period last year [4][20] - The average cement inventory level is at 66.4%, a slight decrease of 0.1 percentage points from last week but an increase of 2.7 percentage points year-on-year [25] 2. Bulk Construction Materials Fundamentals 2.1 Cement - The average shipment rate for cement is 44.0%, down 1.7 percentage points from last week and 4.3 percentage points year-on-year [25] - The report anticipates that the cement industry will maintain a higher profit margin compared to last year due to improved supply-demand balance and ongoing policy support for domestic demand [12][19] 2.2 Glass Fiber - The report indicates that the profitability of glass fiber remains resilient, with demand in wind power and thermoplastics continuing to grow [13] - The industry is expected to see a gradual recovery in supply-demand balance, benefiting leading companies with strong product structures [13] 2.3 Glass - The glass sector is facing weak terminal demand, with inventory levels remaining high and price pressures expected to increase as the market enters a seasonal downturn [14] - The report recommends focusing on leading companies like Qibin Group, which may benefit from industry capacity reductions and diverse business growth [15] 3. Renovation and Building Materials - The report highlights the positive impact of government policies aimed at boosting domestic demand and consumption, particularly in the renovation sector [16] - Companies with strong growth intentions and those benefiting from government subsidies are recommended for investment consideration [16]

Investment Rating - The industry investment rating is "Positive" and maintained [11] Core Insights - The report emphasizes the need to focus on the optimization of real estate policies in Guangzhou, which includes the cancellation of purchase restrictions and the reduction of down payment ratios and interest rates to stimulate housing consumption [6][20] - The report highlights a decline in cement shipments and an increase in glass inventory, indicating a weak demand in the real estate sector [7][24] - Recommendations include focusing on domestic substitution chains and African chains, with leading companies being the main investment theme for the year [9] Summary by Sections Real Estate Policy - Guangzhou plans to optimize real estate policies, including the cancellation of purchase restrictions and the reduction of down payment ratios and interest rates. The city aims to support housing consumption and urban renewal projects, with a fixed asset investment of 100 billion yuan for the renovation of urban villages and old communities by 2025 [6][20] Cement Market - In early June, the average shipment rate for cement companies in key regions was 45.5%, down approximately 2.3 percentage points month-on-month and 4.0 percentage points year-on-year. The average price of cement decreased by 0.9% month-on-month, reflecting weak demand [7][24][25] - The national average price of cement was 365.32 yuan per ton, a decrease of 3.23 yuan per ton month-on-month and a decrease of 29.03 yuan per ton year-on-year [25] Glass Market - The domestic float glass market showed a weak price trend, with a total inventory of 60.45 million weight boxes, an increase of 34,000 weight boxes week-on-week. The production capacity utilization rate was 81.56% [8][37] - The average price of glass was 71.15 yuan per weight box, down 0.44 yuan per weight box month-on-month and down 19.00 yuan per weight box year-on-year [37] Recommended Companies - For domestic substitution, companies such as China National Materials, Meijia Xincai, and Puyang Huicheng are recommended due to their strong positions in the market. For the African chain, Keda Manufacturing is highlighted as a leading player with advantages in production and branding [9] - The report also suggests focusing on companies with strong business models and growth potential, such as Sanke Tree and Rabbit Baby, which are expected to benefit from urban renewal policies [9]

Investment Rating - The report maintains an "Outperform" rating for the construction materials sector, indicating expected performance above the market benchmark by over 10% [5][77]. Core Views - The construction and real estate sectors are experiencing a downturn, with expectations for new policies to stimulate growth. Fixed asset investment increased by 3.7% year-on-year, while real estate development investment decreased by 10.7% [1][3]. - The report highlights the potential for increased government policies aimed at stabilizing the real estate market, including land repurchase and urban renewal initiatives [1][3]. Summary by Sections Cement - National cement prices fell by 0.9% week-on-week, with regional variations. Demand remains weak due to seasonal factors, leading to a decrease in enterprise shipment rates to 45.7% [2][24]. - Future price trends are expected to remain volatile due to insufficient demand support [2][24]. Glass - The average price of float glass was 1229.90 CNY/ton, down 1.63% week-on-week. Both supply and demand are weak, leading to high inventory levels [2][37]. - The photovoltaic glass market is also experiencing low demand, with prices for 2.0mm and 3.2mm coated panels declining [2][41]. Fiberglass - The price of non-alkali roving yarn is stable, while electronic yarn prices are experiencing slight increases due to tight supply. The average price for non-alkali roving yarn is 3687.50 CNY/ton, down 4.08% year-on-year [2][45]. Investment Recommendations - The report suggests focusing on resilient consumer building material leaders, particularly those benefiting from second-hand housing and urban renewal demands, recommending companies like Sanke Tree and Beixin Building Materials [3][5]. - For the cement and fiberglass sectors, companies like Conch Cement and China Jushi are highlighted for their potential recovery in performance [3][5]. - In the construction sector, state strategic projects are expected to boost demand, with recommendations for companies like China Railway Construction and China Communications Construction [3][5]. Real Estate Data - Recent data shows a decrease in new housing sales, with a 1.2% drop in the average transaction area for new homes in major cities [67][68]. - The report notes a significant increase in second-hand housing transactions, indicating a potential shift in market dynamics [67][68].

Investment Rating - The report maintains a recommendation for the building materials industry [2] Core Views - The real estate chain is stabilizing due to continued policy support, and industrial transformation is aiding fundamental recovery [1] - The cement market is experiencing weak demand and price fluctuations, while the float glass market is seeing price declines and weak shipments [1][12][13] - The consumption building materials sector is benefiting from ongoing "good housing" construction initiatives, with leading companies in sub-sectors maintaining their advantages [15][16] Summary by Sections 1. Weekly Core Views - Cement Industry: Demand remains poor, with prices continuing to decline. The national average cement price fell by 0.9% week-on-week, with significant price drops in regions like North China and South China [12][22] - Float Glass Industry: Prices are declining, with the national average price at 1200 RMB/ton, down 7.14 RMB/ton from the previous week. The market is facing weak demand and cautious purchasing behavior [13] - Fiberglass Industry: The price of non-alkali roving remains stable, while electronic yarn prices are seeing slight increases due to tight supply [14] - Consumption Building Materials: The government is emphasizing affordable housing and youth apartment supply, which is expected to boost demand for consumption building materials [15][16] 2. Industry Dynamics - Macro: The e-commerce logistics index in May rose to 111.6 points, indicating a steady increase in supply and demand [20] - Real Estate: Policies are being implemented to enhance community services and support flexible employment in housing funds [20] - Infrastructure: Investment in railway and civil aviation construction is expected to grow, with significant projects planned for unconventional water development [21] 3. Recommended Stocks - Weixing New Materials: Transitioning to a system integration service provider with a focus on risk control and sustainable growth [17] - Mona Lisa: Aiming for high-end market positioning with continuous improvement in operational quality [18] - Keshun Co.: Expected recovery in profitability as the waterproofing industry consolidates [19] - North New Materials: Expanding globally with a focus on gypsum board and related products [19] - Dongpeng Holdings: Diversifying product offerings to meet comprehensive consumer needs [19]