Cement stocks declined across the board. As of press release, Dongwu Cement (00695) fell 8.88% to HK$2.36; Western Cement (02233) fell 4.48% to HK$0.64; China Resources Building Materials Technology (01313) fell 3.97% to HK$1.45; and China Building Materials (03323) fell 1.97% to HK$2.99.
The Zhitong Finance App learned that cement stocks were lower across the board. As of press release, Dongwu Cement (00695) fell 8.88% to HK$2.36; Western Cement (02233) fell 4.48% to HK$0.64; China Resources Building Materials Technology (01313) fell 3.97% to HK$1.45; and China Building Materials (03323) fell 1.97% to HK$2.99.
According to the news, Shanghai Securities pointed out that in the past week (12.30-1.5), cement prices across the country were weak during the week of New Year's Day, with cement prices falling in the central and southern regions. Take the Hunan region as an example. The main reason is that the number of completed and delivered projects increased at the end of December, and new projects have yet to be started, leading to a decline in short-term demand. In terms of inventories, cement stocks in the eight provinces changed -1.98% from week to week, and inventories declined for seven consecutive weeks. On the profit side, the cement industry's theoretical process profit was 28.8 yuan/ton, a change of -4.92% from week to week. The profit level declined somewhat this week.
Northeast Securities, on the other hand, pointed out that cement production is highly correlated with new housing construction area and infrastructure construction investment. Cement production declined year-on-year from May to October 2023, reflecting weak overall demand. Competition in the industry intensified due to weak market demand in 2023, and some cement companies increased sales by lowering prices and relieving inventory pressure. With the rapid transformation of the supply structure of the industry and the restart of CCER, the cement industry is expected to take the lead in entering the carbon trading market or become a fundamental solution to the supply and demand relationship problems in the industry. Some of the targets have high dividend rates and are attractive, and are expected to usher in opportunities for valuation reshaping.