Zhitong Finance and Economics app learned that Shouchuang Securities issued a research report stating that the real estate market, infrastructure market, and new energy market are still in an adjustment phase. Real estate policies are being intensively introduced and policy guidance is gradually strengthening, providing direction for the development of the building materials industry. Currently, the building materials industry index is performing well, with most individual stocks rising. It is expected that the building materials market will marginally improve in the future, and the industry sector will have a good performance. It is necessary to continue monitoring the short-term policies affecting the real estate, infrastructure, and new energy markets.

Shouchuang Securities' main points are as follows:

Building materials industry index performs well: During the week of October 19th to October 25th, the Shanghai Composite Index closed at 3299.70, with a weekly increase of 1.17%. The Shenzhen Component Index closed at 10619.85, with a weekly increase of 2.53%. The SME 100 Index closed at 6562.36, with a weekly increase of 2.90%. The Shenwan Building Materials Index closed at 4552.02, with a weekly increase of 4.39%, outperforming the Shanghai index by 3.22%. The Shenwan Building Materials Index ranks 9th out of 31 Shenwan primary industry indices in terms of the change in value. All three second-level sub-industries showed positive growth, with five out of seven third-level sub-industries also showing positive growth.

Most building materials industry stocks are rising: Among the 76 listed companies in the building materials industry this week, 66 have a positive increase. The top-performing stocks include Dongguan Huali Industries, Guangdong Xiongsu Technology Group, Xiamen Wanli Stone Stock, Ningxia Building Materials Group, Donghe New Materials, Triumph New En, Science Innovation New Materials, Conch New Materials, Zhejiang Juli Culture Development, Shandong Jinjing Science & Technology Stock.

Stable short-term outlook for the cement industry: According to Baichuan Yingfu, this week (October 19, 2024, to October 25, 2024), national cement prices rose and then fell. As of October 25, the average cement market price was 360 yuan/ton, unchanged compared to the previous period (0.00%). In terms of demand, there is an increase in rushed construction demand in some regions, and local demand has slightly rebounded, with generally better demand in the south than in the north. In terms of supply, the operating status of cement kiln lines of manufacturers fluctuated this week, leading to a slight decrease in total cement production. The future market is expected to remain stable.

Glass market expected to stabilize and improve: According to Baichuan Yingfu, in the week of October 19 to October 25, the spot prices of 5mm flat glass in many areas remained stable with good spot trading. As of October 25, the national average price of flat glass was 1271 yuan/ton, up by 5 yuan/ton compared to the previous period, an increase of about 0.39%. In terms of supply, there was only a minor change in production volume this week, with an increase in demand. Future focus is still needed on the continuity of policy impact on real estate terminal demand. Production costs remained stable this week, providing support to prices. It is expected that the glass market will stabilize and improve under the influence of policies in the future.

Investment advice: Related symbols include Conch Cement (600585.SH), Huaxin Cement (600801.SH), China Jushi Co., Ltd (600176.SH), Zhuzhou Kibing Group (601636.SH), Sinoma Science & Technology (002080.SZ), Jiangsu Changhai Composite Materials (300196.SZ), Beijing Oriental Yuhong Waterproof Technology (002271.SZ), SKSHU Paint (603737.SH), etc.

Risk warning: Soft downstream demand; Sharp rise in raw material prices; Deterioration in competitive landscape.