Cement stocks were higher in early trading. As of press release, China Building Materials (03323) rose 7.43% to HK$3.47; Conch Cement (00914) rose 6.67% to HK$20.8; China Resources Building Materials Technology (01313) rose 5.56% to HK$1.52; and Huaxin Cement (06655) rose 4.61% to HK$8.39.
The Zhitong Finance App learned that cement stocks were higher in early trading. As of press release, China Building Materials (03323) rose 7.43% to HK$3.47; Conch Cement (00914) rose 6.67% to HK$20.8; China Resources Building Materials Technology (01313) rose 5.56% to HK$1.52; and Huaxin Cement (06655) rose 4.61% to HK$8.39.
According to the news, Lin'an District of Hangzhou City has decided to purchase a batch of commercial housing within Lin'an District to be used as public rental housing. Guoxin Securities said that in the short term, mainstream cities have successively optimized purchase restriction policies, which is expected to reverse pessimistic real estate expectations. Currently, real estate fundamentals have not improved significantly, and market confidence will take time to recover. Follow-up support policies are still expected to be further strengthened. Currently, valuations and holdings in the building materials sector are low, focusing on leading consumer building materials quality and some opportunities to recover overdue valuations.
Shen Wan Hongyuan pointed out that the cement industry was under pressure in 2023, and 2024 had a bad start, but the bottom signal was strong. The bank believes there is not much room for further price cuts. The shutdown of production lines in the cement industry is relatively flexible. The entire industry was already in a state of overall loss in the first quarter. The leading company, Conch Cement, maintained profits through cost advantages, and companies in the industry lacked the motivation to further reduce prices and lose money or even lose production. Even if demand returns to average, the industry's willingness to maintain capital protection through collaborative production limits will still be evident.