Cement stocks were generally higher. As of press release, China Building Materials (03323) rose 5.8% to HK$3.1; Huaxin Cement (06655) rose 5.22% to HK$6.85; and China Resources Building Materials Technology (01313) rose 4.58% to HK$1.37.
The Zhitong Finance App learned that cement stocks were generally higher. As of press release, China Building Materials (03323) rose 5.8% to HK$3.1; Huaxin Cement (06655) rose 5.22% to HK$6.85; China Resources Building Materials Technology (01313) rose 4.58% to HK$1.37; and Conch Cement (00914) rose 3.25% to HK$17.14.
Tianfeng Securities pointed out that according to CementNet's estimates, the cement industry's annual profit in '23 was 31 billion yuan, down 55% from the previous year, hitting a 16-year low. However, it is now close to the phased bottom of profit, and room for further decline is expected to be limited. The bank believes that cement is expected to benefit from subsequent improvements in infrastructure and real estate demand expectations. In the medium to long term, the supply pattern is expected to continue to be optimized.
The bank believes that 21/22FY for consumer building materials is affected by the real estate boom, capital chain, and cost pressure brought about by the continued rise in commodity prices. Currently, the above factors are expected to gradually improve. The trend of improving real estate policies is clear, and fundamentals may have basically stabilized in 23 years. In the medium to long term, leading companies have begun channel transformation, and the scale effect is expected to continue to increase industry concentration. Consumer building materials are still the medium- to long-term preferred track for the building materials sector.