Current key recommendations: (1) cement sector: at present, transportation construction projects across the country have been started and resumed. With the continuous improvement of downstream demand, cement prices in most areas began to rebound. At the same time, the continuously promoted energy conservation and carbon reduction policy is conducive to promoting energy conservation and carbon reduction of cement manufacturers, optimizing the supply pattern of the industry and improving the competitive advantage of leading industries. (2) Glass fiber sector: the demand of China’s roving market has started fairly recently, and most products just need to be picked up and maintained. With little change in the short-term supply side, the demand support is OK, and the inventory of most factories is reduced slightly within the month. Recently, the prices of China’s major electronic yarn kilns have stabilized. Most of the downstream markets are just in need of replenishment, and the acceptance capacity of high price sources is still limited. However, supported by the cost of electronic yarn, it is expected that there is little room for price adjustment in the middle and later stages. (3) Glass sector: under the background of double carbon policy, photovoltaic glass ushers in demand support. At the same time, the continuous improvement of double glass penetration also brings new growth rate to photovoltaic glass. However, affordable Internet access promotes industrial cost reduction and efficiency increase, puts forward higher requirements for enterprise technology and cost control, and benefits industry leaders with technology and cost advantages. At present, the valuation of the building materials industry is relatively low and the safety margin is high, so it is rated as “recommended”.
Recommended cement sector: (1) macro aspect: infrastructure has become the primary focus of current economic stabilization. The work reports of provincial and municipal governments have made clear the specific objectives of traditional infrastructure such as transportation construction, water conservancy projects and urban pipe network construction, which support the demand for cement. In addition, the policy of energy conservation and carbon reduction has been continuously promoted. The guidelines for the implementation of the upgrading system of energy conservation and carbon reduction in the cement industry clearly requires that by 2025, the proportion of clinker production capacity above the energy efficiency benchmark level in the cement industry will reach 30%, and the clinker production capacity below the energy efficiency benchmark level will be basically cleared. The effect of energy conservation and carbon reduction in the industry is remarkable, and the ability of green and low-carbon development will be greatly enhanced. The continuously promoted energy conservation and carbon reduction policy is conducive to promoting energy conservation and carbon reduction of cement manufacturers, optimizing the supply pattern of the industry and improving the competitive advantage of leading industries. (2) Fundamentals: with the commencement and resumption of infrastructure projects, the downstream demand for cement will continue to increase. In the short term, despite the slow recovery of downstream demand at the beginning of the market, driven by the rise of cost side, the upward trend of cement prices in various regions is obvious. It is expected that in March, with the continuous improvement of downstream demand, cement prices in most regions will begin to rebound. At present, it is recommended to take the lead in the cement area Anhui Conch Cement Company Limited(600585) , Gansu Shangfeng Cement Co.Ltd(000672) , focusing on Huaxin Cement Co.Ltd(600801) , Xinjiang Tianshan Cement Co.Ltd(000877) .
Recommended glass fiber industry: the demand of China’s roving market has started fairly recently, and most products just need to be picked up and maintained. With little change in the short-term supply side, the demand support is OK, and the inventory of most factories is reduced slightly within the month. Recently, the prices of China’s major electronic yarn kilns have stabilized. Most of the downstream markets are just in need of replenishment, and the acceptance capacity of high price sources is still limited. However, supported by the cost of electronic yarn, it is expected that there is little room for price adjustment in the middle and later stages. In the medium and long term, the macro level will continue to promote the large-scale and high-quality development of wind power and Cecep Solar Energy Co.Ltd(000591) power generation, and the future demand for wind power will be better. The addition and replacement of new energy vehicles and wind power provide support for the demand for glass fiber. In addition, from the supply side, the addition of medium and long-term glass fiber production capacity is limited, and the high prosperity of glass fiber industry is expected to continue. In terms of individual stocks, recommend industry leaders China Jushi Co.Ltd(600176) , Sinoma Science & Technology Co.Ltd(002080) , and pay attention to Jiangsu Changhai Composite Materials Co.Ltd(300196) , Shandong Fiberglass Group Co.Ltd(605006) .
Glass industry: this week, the float glass market mainly digests social inventory, and the production and sales rate of float factory is low. In the short term, the orders of downstream processing plants are insufficient, the operating rate is low, the supply of goods in the middle and downstream still needs time to digest, the float glass market may be stable and weak, and some transaction flexibility is increased. Supply: cold repair is planned for some production lines next week, and the capacity supply will remain high. The inventory of float factory is relatively normal. The inventory of manufacturers in some regions is low, but the production and sales are weak, the inventory increases rapidly, and the inventory of long-term float factory is gradually under pressure. In terms of demand: the improvement of terminal funds is uncertain, the market starts slowly, the orders of downstream processing plants in the short term may be mediocre, and it is difficult to return to the normal operating rate for the time being. Market supply digestion still needs the market. Cost: the rising cost of petroleum coke and other fuels has raised the production cost of float plants in some areas. Short term profits may remain at a good level. Focus on the industry leader Zhuzhou Kibing Group Co.Ltd(601636) with cost advantage, and Luoyang Glass Company Limited(600876) , Shandong Pharmaceutical Glass Co.Ltd(600529) , Flat Glass Group Co.Ltd(601865) , Xinyi Glass, CSG a, Shandong Jinjing Science And Technology Stock Co.Ltd(600586) .
Other consumer building materials: the waterproof industry has broad development prospects and the market stock is increasing. After the introduction of new industry standards, the market is expected to be structurally adjusted and the concentration is further improved. Under the background of carbon neutralization, photovoltaic roofs are gradually rising, and the service life requirements of photovoltaic houses facing the waterproof layer have become a new growth point of the waterproof industry. In addition, the recovery expectation of infrastructure and real estate end storage is optimistic about the improvement of the demand of the waterproof industry. Focus on Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) , Keshun Waterproof Technologies Co.Ltd(300737) , Jiangsu Canlon Building Materials Co.Ltd(300715) . Recommend the gypsum board leader Beijing New Building Materials Public Limited Company(000786) , the company’s “one body and two wings” layout is accelerated, and the waterproof and coating sectors are developing rapidly. We are optimistic about the future performance growth. The pipe sector focuses on the leader Zhejiang Weixing New Building Materials Co.Ltd(002372) , Hong Kong stock and China Liansu. The coating sector pays attention to Skshu Paint Co.Ltd(603737) , Asia Cuanon Technology (Shanghai) Co.Ltd(603378) .
Risk warning: the construction progress of infrastructure projects is less than expected; The market demand is less than expected; Focus on the company’s performance not meeting expectations; The epidemic has repeatedly affected the economy; Adverse changes have taken place in the macro environment.
