The industry is still in the boom range. In March 2022, the prosperity index of building materials industry was 132.9 points, higher than the critical point (100), in the boom range. January February is the off-season of the building materials industry. The sales volume of some building materials products decreased and the inventory increased. Since March, driven by the steady growth policy and the warmer temperature, the market environment has improved, and the downstream demand of the building materials industry has increased significantly. The prosperity of the building materials industry rebounded rapidly in March. From the sub index, the price index of the building materials industry rebounded slightly, and the production index, investment demand index, industrial consumption index and international trade index all rebounded significantly.
Steady profit growth in the industry. From January to February 2022, the profits of Industrial Enterprises above designated size increased by 5% year-on-year. Among them, industrial enterprises above Designated Size in the non-metallic mineral products industry realized an operating revenue of 891.89 billion yuan from January to February, a year-on-year increase of 9.5%; The operating cost was 749.61 billion yuan, a year-on-year increase of 10.4%; The total profit was 55.12 billion yuan, a year-on-year increase of 5.2%. The profits of industrial enterprises in non-metallic mineral products industry increased slightly.
Cement supply contracted and demand gradually warmed up. From January to February 2022, the cumulative output of cement in China was 199 million tons, a year-on-year decrease of 17.8%. January February is the off-season of the cement industry. According to the peak shifting production in the first quarter of each province and city, the implementation of peak shifting and production restriction is significantly better than last year. Driven by the steady growth policy, the demand for infrastructure investment increased, but the new construction of real estate is still relatively sluggish. It is expected that with the gradual release of follow-up infrastructure projects and the marginal relaxation of real estate policies, the demand of the cement industry will gradually pick up.
Glass production increased slightly. From January to February 2022, the output of flat glass was 165 million weight boxes, with a year-on-year increase of 2.0%, and the output of glass increased slightly. From January to February, the completed area of the real estate decreased, the glass market demand weakened, and the decline in demand led to the decline in the price of flat glass. With the warmer weather, the relaxation of the marginal real estate policy and the arrival of the peak construction season, the completion end is expected to pick up, the glass market demand is expected to increase, and the price of flat glass will resume the upward trend.
Investment advice. In 2022, the building materials industry mainly focuses on the following investment directions: (1) leading consumer building materials that benefit from the improvement of industry concentration: Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) ( Beijing Oriental Yuhong Waterproof Technology Co.Ltd(002271) . SZ), Zhejiang Weixing New Building Materials Co.Ltd(002372) ( Zhejiang Weixing New Building Materials Co.Ltd(002372) . SZ), ad shares ( Yonggao Co.Ltd(002641) . SZ). (2) Glass fiber faucet benefiting from the increase of wind power demand: China Jushi Co.Ltd(600176) ( China Jushi Co.Ltd(600176) . SH). (3) Glass faucets with multi business layout Zhuzhou Kibing Group Co.Ltd(601636) ( Zhuzhou Kibing Group Co.Ltd(601636) . SH), Csg Holding Co.Ltd(000012) ( Csg Holding Co.Ltd(000012) . SZ). (4) Regional leaders of cement industry Huaxin Cement Co.Ltd(600801) ( Huaxin Cement Co.Ltd(600801) . SH) and Gansu Shangfeng Cement Co.Ltd(000672) ( Gansu Shangfeng Cement Co.Ltd(000672) . SZ) benefiting from the recovery of infrastructure investment.
Risk warning: the risk that the new capacity of the industry exceeds the expectation; Risks of raw material price increase exceeding expectations, etc.
