Investment Rating - The report assigns an "Overweight" rating to the construction materials industry [1]. Core Insights - The confidence in the commencement rhythm of key infrastructure projects in Xinjiang and Tibet continues to improve, while the marginal optimization of real estate policies in Beijing is noted. The consumption building materials sector has entered a phase of fundamental stabilization and recovery [2]. - The report highlights the expected recovery in revenue and profitability for the consumption building materials sector, driven by improved real estate policies and a reduction in price competition [6]. - The cement market is experiencing price stabilization, with regional variations in pricing adjustments due to demand fluctuations and operational strategies among companies [21][22]. - The glass and fiberglass sectors are witnessing a return to value, with strong demand for high-end products and a focus on new structural trends in demand [7]. Summary by Sections 1. Construction Materials Industry Investment Strategy - The report emphasizes the advantages of the cement industry in the western region, including strong infrastructure demand, reliable funding sources, and a concentrated market structure. The industry is expected to see improved profitability in 2025 [5]. - Key companies recommended include Conch Cement, Huaxin Cement, and Tianshan Cement, among others [5]. 2. Market Review - The construction materials sector saw a 1.19% increase from August 4 to August 8, 2025, with cement manufacturing up 2.20% and glass manufacturing down 0.62% [9]. - Individual stock performance showed significant fluctuations, with Tianshan Cement leading with a 10.90% weekly increase [14]. 3. Cement Industry - The national average price for high-standard cement was 339.7 CNY/ton, remaining stable week-on-week. The average price for clinker was 221 CNY/ton [25]. - The report notes that the average shipment rate for cement companies in key regions is around 44%, indicating ongoing demand challenges [21]. - Inventory levels are high, with a national cement inventory ratio of 67.38%, reflecting a slight increase [37]. 4. Glass Industry - The average price of float glass was 1274.90 CNY/ton, down 20.38 CNY/ton week-on-week, with market conditions remaining generally weak [42]. - The report indicates that the production capacity for float glass is stable, with 283 production lines and a daily melting capacity of 158,355 tons [42][59]. 5. Fiberglass Industry - The market for non-alkali fiberglass is stable, with prices for electronic yarns expected to remain steady due to strong demand for high-end products [63]. - The report highlights the need to reassess the fiberglass industry's profitability due to structural demand changes, recommending companies like China Jushi and China National Building Material [63].

Group 1: Cement Industry - The national cement market price decreased by 1.2% week-on-week, with price drops mainly in Shanxi, Shanghai, Jiangsu, Anhui, Hubei, Hunan, and Guangdong, ranging from 10 to 20 CNY per ton [1] - Some regions, including Jiangsu, Shanghai, Zhejiang, and Guangxi, experienced price increases of 20 to 30 CNY per ton [1] - Domestic cement demand remains weak due to multiple adverse factors, with an average shipment rate of 48% in key regions [1] - Although the Yangtze River Delta region has started to increase prices, the overall demand insufficiency and unclear peak production execution may hinder the effectiveness of this price increase [1] Group 2: Glass and Fiberglass - The average price of float glass in China is 1250.27 CNY per ton, down by 20.69 CNY per ton from the previous week, indicating a weak market with increased inventory due to the Dragon Boat Festival [2] - The fiberglass market saw local high prices decrease, while electronic yarn prices remained stable; however, demand is still weak with limited order growth [2] - The overall supply of non-alkali fiberglass is expected to maintain a certain growth rate, but competition among leading companies remains strong [2] Group 3: Future Outlook - June marks the beginning of a low base period for construction materials demand, with a significant decline expected from June to September 2024 due to local debt pressures in developed regions [3] - The glass processing sector shows resilience, with leading companies benefiting from high barriers to competition and favorable valuation and dividend advantages [3] - The fiberglass sector is seeing gradual price increases for long-term contracts, with leading companies having a higher sales proportion of high-end products [3]