Investment Rating - The report maintains an "Overweight" rating for the construction materials industry [1] Core Views - The construction materials sector is currently facing a high base effect in Q4 2024, which may challenge year-on-year comparisons. However, there are signs of potential alpha opportunities in the consumer segment and export industries if the sector can navigate this high base successfully [3][4] - The report highlights a mixed performance in the cement market, with prices showing slight fluctuations and regional disparities. The average price of high-standard cement is reported at 350.8 CNY/ton, down 1.5 CNY/ton from the previous week and down 77.7 CNY/ton year-on-year [3][11] - The glass market is experiencing downward pressure on prices due to high inventory levels and weak demand, with the average price of float glass at 1168.4 CNY/ton, down 27.0 CNY/ton from the previous week and down 289.7 CNY/ton year-on-year [3][42] - The report suggests focusing on renovation consumption and the export industry, recommending companies such as Arrow Home, SanKe Tree, and China Giant for potential investment opportunities [3][4] Summary by Sections 1. Bulk Construction Materials Fundamentals and High-Frequency Data - **Cement**: The national average cement price is 350.8 CNY/ton, with regional price changes varying significantly. The average cement inventory ratio is 69.2%, and the average shipment rate is 45.7% [3][11][18] - **Glass**: The float glass market is under pressure with prices declining and high inventory levels. The average price is reported at 1168.4 CNY/ton, with inventory increasing to 6005 million heavy boxes [3][42][45] - **Fiberglass**: The market is stable with slight price increases in high-end products. The average price for non-alkali fiberglass is around 3250-3700 CNY/ton [3][5] 2. Industry Dynamics Tracking - The report notes that the construction materials sector has seen a decline of 5.68% in the past week, underperforming compared to the broader market indices [3] - The report emphasizes the importance of supply-side reforms and the potential for recovery in profitability as demand stabilizes [3][4] 3. Weekly Market Review and Sector Valuation Table - The report provides a detailed analysis of price changes, inventory levels, and shipment rates across various regions, indicating a mixed outlook for the sector [3][21][38]

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]

Investment Rating - The report maintains a "Positive" investment rating for the industry [11] Core Insights - The real estate sales continue to weaken, with a focus on policy expectations. In October 2025, the total sales amount of the top 100 real estate companies decreased by 40.6% year-on-year, and the sales area dropped by 40.0% year-on-year, indicating a significant expansion in the decline [5][6] - Cement prices have slightly decreased month-on-month, while glass inventory has also decreased [6][28] - The report continues to recommend the African supply chain and special fabrics, highlighting opportunities in AI special fabrics due to rising demand and high supply barriers [8] Summary by Sections Real Estate Market - The sales data has deteriorated since Q4, with a notable decline in both sales amount and area. The latest high-frequency transaction data shows a year-on-year decrease of 45% in the rolling transaction area of commercial housing in 30 major cities [5][6] - The downward pressure in the real estate market has been evident since April 2023, and the probability of policy easing is gradually increasing [5] Cement Market - As of early November, the domestic cement market demand has remained relatively stable, with a month-on-month price decrease of 0.1%. The average national cement price is 355.97 yuan/ton, down 0.48 yuan/ton month-on-month and down 73.55 yuan/ton year-on-year [6][28] - The cement inventory rate is at 69.52%, which is an increase of 0.37 percentage points month-on-month [28] Glass Market - The domestic float glass market prices have shown slight fluctuations, with some price increases due to local production halts. The average national glass price is 64.81 yuan per weight box, up 0.34 yuan per weight box month-on-month but down 13.43 yuan year-on-year [42] - The total inventory of glass in key monitored provinces is 6016 million weight boxes, a decrease of 184 million weight boxes month-on-month [41][42] Special Fabrics - The report emphasizes the potential of AI special fabrics, driven by increased demand and the high barriers to supply. Companies like Zhongcai Technology are positioned to benefit from domestic substitution in this sector [8]

Investment Rating - The report maintains an "Accumulate" rating for the construction materials industry [1] Core Views - The macroeconomic data is weakening, and there are expectations for policy support to stabilize the market [1] - The construction materials sector has shown a slight increase of 0.80% this week, outperforming the CSI 300 and Wind All A indices [5] - The report highlights the potential for recovery in the glass fiber industry and suggests focusing on companies benefiting from price increases and domestic demand recovery [5][6] Summary by Sections 1. Bulk Construction Materials Fundamentals and High-Frequency Data - **Cement**: The national average price for high-standard cement is 351.2 RMB/ton, down 0.5 RMB/ton from last week and down 74.3 RMB/ton from the same period in 2024. The average cement inventory ratio is 69.9%, up 0.3 percentage points from last week [5][12][21] - **Glass**: The average price for float glass is 1197.2 RMB/ton, down 5.5 RMB/ton from last week and down 192.1 RMB/ton from 2024. The inventory of float glass is 6016 million heavy boxes, down 184 million from last week [5][47][50] - **Glass Fiber**: The market for glass fiber remains stable, with prices for 2400tex alkali-free yarn around 3250-3700 RMB/ton, showing no significant changes from the previous week [5][6] 2. Industry Dynamics Tracking - The report notes a decline in October export data and a further weakening in the real estate sector, leading to expectations for supportive domestic demand policies from the upcoming Central Economic Work Conference [5] - Recommendations include focusing on companies in the glass fiber sector, such as China Jushi and Zhongcai Technology, and those in the home decoration sector, like Hanhai Group and Ark Home [5] 3. Weekly Market Review and Sector Valuation - The construction materials sector's performance is compared to the broader market, with a slight underperformance noted against the CSI 300 index [5] - The report emphasizes the importance of industry policies and the potential for valuation recovery as the market stabilizes [5][6]

Investment Rating - The report maintains an "Accumulate" rating for the building materials sector [4] Core Views - The real estate sector remains weak, but the probability of policy interventions is gradually increasing, which may provide support for the building materials industry [1] - The cement market is experiencing a "double weakness" in supply and demand, with a slight recovery in infrastructure but ongoing challenges in the housing market [2][16] - The glass market is facing supply-demand contradictions, but self-discipline in production among photovoltaic glass manufacturers may alleviate some pressures [1][3] - Consumption building materials are expected to benefit from favorable second-hand housing transactions and consumption stimulus policies, with significant potential for market share growth [1] - The fiberglass market shows signs of bottoming out, with a potential increase in demand driven by wind power projects [1][6] Summary by Sections Cement Industry Tracking - As of November 7, 2025, the national cement price index is 348.96 CNY/ton, with a week-on-week increase of 0.47% [2][16] - The cement output this week is 2.849 million tons, up 0.8% from last week [2] - The market is characterized by weak supply and demand, with construction projects hindered by funding and progress issues [2][16] Glass Industry Tracking - The average price of float glass is 1197.22 CNY/ton, down 0.45% from last week [3] - Inventory levels have decreased slightly, but overall market transactions remain sluggish [3] Fiberglass Industry Tracking - The price of non-alkali fiberglass remains stable, with demand showing some decline [6] - The electronic fiberglass market continues to see strong demand for high-end products, with stable pricing expected in the short term [6] Consumption Building Materials - The demand for consumption building materials is showing signs of weak recovery, with fluctuations in upstream raw material prices [6] Carbon Fiber Industry Tracking - The carbon fiber market price remains stable, with production costs averaging 106,300 CNY/ton [7] - The industry is facing challenges with profitability, as the average gross margin is negative [7] Key Stocks - Recommended stocks include North New Materials, Weixing New Materials, and San Ke Tree, with various ratings and earnings projections for 2024 to 2027 [8]

Investment Rating - The industry rating is "Outperform the Market" (maintained rating) [4] Core Views - The construction materials sector has shown a 1.62% increase, outperforming the Shanghai Composite Index by 0.8 percentage points, with glass and ceramics performing relatively well [2][10] - Cement demand continues to weaken due to seasonal factors, with shipment rates down 8% year-on-year as of the latest week [2] - Despite some positive sentiment in the glass market due to production line shutdown news, high inventory levels continue to pressure the market [2] - The real estate sector is stabilizing, with some leading consumer building materials companies showing early signs of revenue improvement in Q3 [2] - The report recommends leading consumer building materials companies and high-growth overseas targets, highlighting the potential for valuation recovery in the sector [2] Summary by Sections Market Review - The Shanghai Composite Index rose by 0.82% while the construction materials sector increased by 1.62%, indicating a strong performance relative to the market [10] - Notable stock performances included Hainan Development (27.4%), Jinjing Technology (24.8%), and Sichuan Jinding (15.3%) [10] Key Recommendations - The recommended stocks include Western Cement, Huaxin Cement, Keda Manufacturing, China National Building Material, Honghe Technology, China Jushi, Rabbit Baby, Qibin Group, and Dongpeng Holdings [3][9] - The report emphasizes the potential for traditional building materials to recover as the industry approaches a cyclical bottom, with specific recommendations for cement and glass companies [16] Price Trends - The report notes that the national cement market price has decreased by 0.1% week-on-week, with regional price fluctuations observed [15] - The average price of float glass has decreased slightly, indicating a stable but cautious market environment [15]

Investment Rating - The report maintains an "Overweight" rating for the building materials industry [1] Core Views - The global trade situation is expected to stabilize over the next year, with a focus on exports [1] - The construction materials sector has shown a positive performance, with a weekly increase of 1.29%, outperforming the Shanghai and Shenzhen 300 Index [4] - The report highlights the importance of the U.S.-China trade agreement in shaping future trade stability [4] Summary by Sections 1. Bulk Building Materials Fundamentals and High-Frequency Data - **Cement**: The national average price for high-standard cement is 351.7 RMB/ton, up by 3.5 RMB/ton from last week, but down by 65.2 RMB/ton compared to the same period in 2024. The average cement inventory ratio is 69.6%, up by 1.8 percentage points from last week [13][14][22] - **Glass**: The average price for float glass is 1202.7 RMB/ton, down by 41.0 RMB/ton from last week and down by 126.0 RMB/ton year-on-year. The inventory of float glass stands at 62 million heavy boxes, down by 470,000 boxes from last week [48][50] - **Fiberglass**: The market price for non-alkali fiberglass remains stable, with mainstream prices ranging from 3250 to 3700 RMB/ton [46] 2. Industry Dynamics Tracking - The report notes a rebound in new orders and business activity expectations in the construction sector, linked to recent policy financial support [4] - The report recommends focusing on export-oriented industries, particularly in the fiberglass sector, and companies involved in home decoration consumption [4] 3. Weekly Market Review and Sector Valuation - The report indicates that the cement market is experiencing a slight increase in prices, particularly in the southwestern region, while demand is expected to weaken as northern regions enter winter [13][14] - The report emphasizes the importance of maintaining supply discipline within the cement industry, which is expected to lead to better profitability compared to the previous year [4][13]

Investment Rating - The report maintains an "Accumulate" rating for the construction materials sector [3]. Core Views - The construction materials sector is experiencing a mixed performance, with cement prices under pressure while glass and fiberglass manufacturing show positive trends. The overall sector has outperformed the CSI 300 index by 1.75% during the week [1][12]. - Government policies aimed at alleviating financial pressures on local governments are expected to improve the fiscal environment, potentially accelerating municipal engineering projects [1]. - The glass market is facing supply-demand imbalances, but self-regulation among photovoltaic glass manufacturers may help ease these tensions [1]. - Consumer building materials are recommended due to their potential benefits from second-hand housing transactions and consumption stimulus policies [1]. - The cement industry is still in a demand bottoming phase, with production adjustments being made to stabilize prices [1][17]. Summary by Sections Cement Industry Tracking - As of October 31, 2025, the national cement price index is 347.34 CNY/ton, up 1.07% week-on-week. Cement output reached 2.8265 million tons, an increase of 8.05% from the previous week [17]. - The cement market is characterized by stable growth in infrastructure, while residential construction lags behind [17]. Glass Industry Tracking - The average price of float glass is 1202.68 CNY/ton, down 3.30% from the previous week. Inventory levels have decreased, indicating some recovery in demand [2][5]. Fiberglass Industry Tracking - Fiberglass prices have stabilized, with demand for high-end products remaining strong. The market is expected to see price increases in the medium to long term [5]. Consumer Building Materials - The demand for consumer building materials is showing signs of weak recovery, influenced by fluctuations in upstream raw material prices [6]. Carbon Fiber Industry Tracking - The carbon fiber market remains stable, with production costs reported at 106,100 CNY/ton, leading to negative margins for many producers [6]. Key Stocks - Recommended stocks include: - North New Building Materials (Buy) - Weixing New Materials (Accumulate) - Sankeshu (Buy) - China Jushi (Buy) - Yinlong Co. (Buy) - Puyang Refractories (Buy) [7].

Investment Rating - The report maintains an "Overweight" rating for the construction materials industry [1] Core Views - Short-term easing of US-China trade tensions and anticipation of economic work conference guidance [1] - Mid-term expectations for improved profitability in the fiberglass sector [2] - The construction materials sector has shown a 1.60% increase in the past week, underperforming compared to the broader market indices [4] Summary by Sections 1. Bulk Construction Materials Fundamentals and High-Frequency Data - **Cement**: The national average price for high-standard cement is 348.2 RMB/ton, up 1.3 RMB/ton from last week but down 63.0 RMB/ton year-on-year. The average cement inventory ratio is 67.9%, up 0.6 percentage points from last week [11][12][18]. - **Glass**: The average price for float glass is 1243.7 RMB/ton, down 57.3 RMB/ton from last week and down 9.3% year-on-year. Inventory levels have increased, indicating weak demand [44][50]. - **Fiberglass**: The market for non-alkali fiberglass remains stable, with prices holding steady. The average price for 2400tex non-alkali winding direct yarn is between 3250-3700 RMB/ton [5]. 2. Industry Dynamics Tracking - **Investment Trends**: Fixed asset investment growth has slowed, indicating weakness in traditional sectors like real estate and infrastructure. The focus is shifting towards technology and domestic consumption [4]. - **Market Recommendations**: The report suggests focusing on technology sectors benefiting from domestic cycles and improving supply chains in the real estate sector [4]. 3. Weekly Market Review and Sector Valuation - The construction materials sector has underperformed compared to the broader market indices, with a 1.60% increase against a 3.24% rise in the CSI 300 index [4]. - The report highlights the importance of industry self-discipline and the potential for price stabilization in the cement sector due to supply-side adjustments [5][11]. 4. Price and Inventory Trends - **Cement Prices**: The report notes a slight increase in cement prices in certain regions, with expectations for continued price fluctuations due to seasonal demand [11][12]. - **Glass Inventory**: The increase in glass inventory suggests a need for demand recovery to stabilize prices [50]. 5. Recommendations for Key Companies - The report recommends focusing on leading companies in the cement and fiberglass sectors, such as China National Building Material and China Jushi, which are expected to benefit from market adjustments and technological advancements [5].

Investment Rating - The report maintains an "Overweight" rating for the construction materials sector [4] Core Views - The construction materials sector is experiencing weak fundamentals, with expectations for more supportive real estate policies [1] - The recent Central Committee meeting emphasized the importance of building a strong domestic market and enhancing effective investment, which could positively impact the construction materials sector [2] - The report highlights the potential for recovery in municipal engineering projects and the positive changes in supply-side dynamics for cement and glass industries [2] Summary by Sections Market Overview - From October 20 to October 24, 2025, the construction materials sector (SW) rose by 0.40%, with cement and glass manufacturing declining by 0.72% and 0.89%, respectively, while fiberglass manufacturing increased by 3.37% [1][12] - The net inflow of funds into the construction materials sector was +415 million yuan during this period [1] Cement Industry Tracking - As of October 24, 2025, the national cement price index was 343.65 yuan/ton, with a week-on-week increase of 0.13% [17] - The total cement output for the week was 2.616 million tons, up 3.46% from the previous week [17] - The capacity utilization rate for cement clinker kilns was 63.75%, reflecting a week-on-week increase of 9.39 percentage points [17] Glass Industry Tracking - The average price of float glass as of October 23, 2025, was 1243.68 yuan/ton, down 4.40% from the previous week [5] - The inventory of raw glass in 13 provinces increased by 2.9 million heavy boxes week-on-week, indicating a growing supply [5] Fiberglass Industry Tracking - The price of non-alkali fiberglass remained stable, with demand showing slight improvement [6] - The average price of electronic fiberglass was stable, with high-end products experiencing tight supply [6] Carbon Fiber Industry Tracking - The carbon fiber market price remained stable, with a production volume of 1857 tons and an operating rate of 61.69% [7] - The industry continues to face challenges with a negative gross margin, indicating ongoing losses for many companies [7] Key Stocks - Recommended stocks include: - Beixin Building Materials (Buy) [8] - Weixing New Materials (Overweight) [8] - Sankeshu (Buy) [8] - China Jushi (Buy) [8] - Yinlong Co. (Buy) [8] - Puren Co. (Buy) [8]