Current key recommendations: (1) cement sector: Recently, the national development and Reform Commission has intensively investigated the economic situation and deployed the economic work in the next stage. From the signals released by relevant meetings, in the next stage, Solidly Promoting the construction of key projects and vigorously promoting enterprise assistance and relief is still the focus of steady growth policy. In this context, cement demand is expected to increase in the second and third quarters. (2) Glass fiber sector: in the short term, the supply side of alkali free tank kiln roving has little change in the short term, and the demand support is good. The quotation may focus on maintaining stable operation, while the market price of electronic yarn still maintains a downward trend. In the long run, the downstream demand of glass fiber, especially the demand for wind power, automobile lightweight and PCB, has a large room for improvement, and the price of coarse sand is expected to remain high and stable. (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: in April, infrastructure investment continued to make efforts, and a number of major projects were started in many places. From April 1 to April 8, 4385 major projects were started in Anhui Province, Heilongjiang Province, Henan Province, Inner Mongolia Autonomous Region and Gansu Province, with a total investment of 2084.4 billion yuan, which is expected to support the demand for cement. (2) Fundamentals: in mid April, China’s cement market demand was affected by the epidemic control, the overall performance was still poor, and the average shipment rate of enterprises fell by 25 percentage points year-on-year. In terms of price, as judged in the early stage, in the areas where staggered peak production has been implemented, the enterprises have raised the cement price synchronously in order to transmit the pressure of rising costs; In the areas significantly affected by the epidemic, the market oversupply was serious, and the price fell slightly. 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: alkali free tank kiln roving quotation is mainly stable, and some transactions are flexible. At present, there is no sign of improvement in the demand of pond kilns, coupled with the limited transportation in most areas, the overall trading is weak. At present, the inventory growth of tank kiln factories has accelerated, the inventory pressure of individual manufacturers with large production capacity has increased, and some products may be traded flexibly in the short term; The electronic yarn has a high probability of stable and weak operation. At this stage, the electronic yarn market is affected by the pressure of supply and the slow recovery of demand. The performance of downstream deep processing and terminal demand is lower than expected. There are few orders in the terminal market and the transmission to the upstream is general. The price of short-term electronic yarn may be stable, and the price of medium and long-term yarn will still be under pressure. 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: float glass market adjusted sporadically this week, and the transaction was average. Recently, the orders of downstream processing plants have not improved significantly, and the contradiction between supply and demand in the short-term market still exists. High inventory still puts pressure on the market. At present, shipments in some regions are limited and the short-term adjustment power is weak. Supply: at present, there is no ignition and cold repair plan for the production line, and the medium and short-term capacity supply is expected to remain stable. The high inventory level of float factory is superimposed on the high inventory level of regional individual manufacturers to form pressure, and the inventory is still a large negative factor. In terms of demand: the order improvement of the processing plant is not obvious, and there is still a shortage of orders as a whole. The logistics in some consumer areas is limited, and the short-term demand will still be flat. Cost:
The high level of raw fuel has risen, the cost remains high, and the long-term profit may still face the expectation of further contraction. Focus on the industry leader Zhuzhou Kibing Group Co.Ltd(601636) , Luoyang Glass Company Limited(600876) , Flat Glass Group Co.Ltd(601865) , Xinyi Glass, Csg Holding Co.Ltd(000012) , 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.
