Jinwu Financial News | Building materials cement stocks were strong. China Building Materials (03323) rose 11.15%, Conch Cement (00914) rose 10.26%, Jinyu Group (02009) rose 7.69%, China Resources Building Materials Technology (01313) rose 7.64%, Huaxin Cement (06655) rose 7.48%, and Shanshui Cement (00691) rose 4.84%.
Guotai Junan pointed out that the volume and price of cement are rapidly bottoming out, and positive supply-side factors are beginning to emerge. Observe that the profits of most leading listed companies in 23Q3-24Q1 have been further compressed. Some have entered marginal profit or loss, indicating that the industry as a whole has returned to break-even balance or loss, and it is difficult to reduce profits again. The 2024Q1 cement sector is being dragged down by delays in resuming work+high base+weather factors, and the overall production and sales of the industry and profits of listed companies are rapidly bottoming out, and Q2 is expected to stabilize simultaneously in terms of volume and price. Leading companies already switched their price strategies to promote steady growth and competitive pressure in April. Industry carbon trading is expected to be promoted rapidly during the year. Over the long term, as industry profits continue to fluctuate at the bottom and supply-side measures such as carbon trading continue to be promoted, industry expectations are rational, and the industry may usher in a clear integration to improve the supply and demand pattern to release flexibility.
Hualong Securities said that after the May 1st holiday, the weather conditions improved, and demand for cement continued to recover slightly. The shipment rate of cement companies in key regions of the country was about 54%, an increase of nearly 2 percentage points over the previous period. In terms of prices, prices have basically fallen back to their original point in the middle and lower reaches of the Yangtze River due to poor production execution; while the northern region has increased productivity and enterprises are actively pushing up prices, it is expected that cement prices will maintain a volatile adjustment trend in the later stages.