Jingwu Financial News | China International Capital Corporation indicates that the price of Float Glass has recovered, but the pace of cold repairs has slowed down. From January to November, the national flat glass production was 0.91 billion boxes, an increase of 3.2% year-on-year; in November, the single-month flat glass production saw a year-on-year decrease of 5.6%, and a month-on-month decline of 1.3%. Since November, the southern market has been at the tail end of its peak season. Driven by positive policy expectations and the impact of downstream inventory replenishment, the average tax-inclusive price of float glass has recovered to 1430 yuan per ton, an increase of 160 yuan per ton compared to October, and corporate profits have also significantly improved. However, the pace of cold repairs has also slowed. As of mid-December, the daily melting volume of float glass is 0.1596 million tons, which is basically the same as that in early November, down 9% from the annual high point.
China International Capital Corporation's real estate team expects that by 2025, the physical completion area of housing will decline by 13% year-on-year (in a pessimistic scenario, it could drop by 15%). Therefore, it is determined that industry demand may continue to decline in 2025, but that year might see a significant clearing out of small and medium-sized enterprises in the industry. The contraction and clearance on the supply side are expected to solidify the bottom for the industry and promote a healthy return of supply and demand once demand emerges from its trough. Leading enterprises with strong competitiveness in costs and a balanced deep processing business structure are expected to see an improvement in profits. It is recommended to pay attention to Zhuzhou Kibing Group, XINYI GLASS (00868), and Shandong Jinjing Science & Technology Stock.