Guidance on carbon peak in building materials industry was issued. In October, the State Council issued the action plan for carbon peak before 2030, which involves the guidance on carbon peak in the building materials industry, including strengthening the supervision of capacity replacement and accelerating the exit of inefficient capacity. Promote the normalization of cement peak shifting production. Make use of wind energy, Cecep Solar Energy Co.Ltd(000591) and other renewable energy according to local conditions, and gradually increase the application proportion of electric power and natural gas. Building materials enterprises are encouraged to use fly ash, industrial waste residue and tailings residue as raw materials or cement mixtures.
Accelerate the certification and application promotion of green building materials, and strengthen the R & D and application of new cementitious materials, low-carbon concrete, wood and bamboo building materials and other low-carbon building materials. Promote energy-saving technology and equipment, carry out the construction of energy management system, and realize energy conservation and efficiency.
Industry PMI is above the boom and bust line. In December, the PMI index of non-metallic mineral products was 50.8, above the boom and bust line. The new order index was 47.6. The export order index was 54.7. The industry is still in the boom range.
The monthly output of cement and glass decreased. From January to November 2021, the cumulative output of cement in China was 2.173 billion tons, a year-on-year decrease of 0.2%; In November, the monthly output was 200 million tons, a year-on-year decrease of 18.6%, a month on month decrease of 0.9%, and the decline of monthly cement output narrowed. The central economic work conference in 2021 pointed out that infrastructure construction will be carried out moderately in advance next year. It is expected that infrastructure investment will rise next year, which will drive the demand of cement market. From January to November, the cumulative output of flat glass reached 930 million weight boxes, a year-on-year increase of 8.4%, a decrease of 0.5 percentage points compared with that from January to October; In November, the monthly output was 83.59 million weight boxes, a year-on-year decrease of 0.5% and a month on month decrease of 2.2%. The glass market demand remained stable.
Investment advice In 2022, the building materials industry mainly focuses on the following investment directions: (1) leading consumer building materials benefiting from the improvement of industry concentration: Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) (002271. SZ), Guangdong Kinlong Hardware Products Co.Ltd(002791) (002791. SZ), Zhejiang Weixing New Building Materials Co.Ltd(002372) (002372. SZ), Yonggao Co.Ltd(002641) (002641. Sz). (2) Glass fiber faucet benefiting from the increase of wind power demand: China Jushi Co.Ltd(600176) (600176. SH). (3) Glass faucets with multi service layout Zhuzhou Kibing Group Co.Ltd(601636) (601636. SH), Csg Holding Co.Ltd(000012) (000012. SZ). (4) Regional leaders of cement industry Huaxin Cement Co.Ltd(600801) (600801. SH), Gansu Shangfeng Cement Co.Ltd(000672) (000672. SZ) benefiting from the recovery of infrastructure investment. (5) Jiangsu Pacific Quartz Co.Ltd(603688) (603688. SH) to improve the production capacity of high-purity quartz sand. (6) Luyang Energy-Saving Materials Co.Ltd(002088) (002088. SZ) benefiting from the increased demand for ceramic fibers.
Risk tip: the risk that the new capacity of the industry exceeds the expectation; Risks of raw material price increase exceeding expectations, etc.
( China Galaxy Securities Co.Ltd(601881) securities)
