Founder: The pace of work resumption after the holiday is slow, and it is expected that the pressure to complete the project by 2025 will still be high. Recommended focus on consumer advantage enterprises.

Founder released a research report stating that the pace of construction site resumption after the holiday is slower than in previous years, with some regional differentiation. Due to the slow recovery of work resumption, the demand for glass and cement after the holiday has been weak. The inventory turnover rate of glass follows a seasonal pattern, with a slow recovery in production and sales after the holiday. The demand for cement has been delayed, but the inventory pressure has decreased compared to the same period last year, possibly due to staggered execution. In terms of decoration and building materials, it is expected that the pressure of completion by 2025 will remain high, and companies with a consumer (C) advantage in the inventory logic are recommended. Key points from Founder: - The pace of construction site resumption after the holiday is slower than in previous years, with regional differentiation. - Due to the slow recovery of work resumption, the demand for glass and cement after the holiday is weak. - Despite the slow pace of construction site resumption in the first week after the holiday, the trend of stabilization in real estate sales has not changed. The decline in new real estate construction indicators has occurred earlier and to a greater extent than in overseas markets. The downward trend in construction site resumption in 2025 is relatively limited, and the demand environment faced by sectors such as cement and waterproofing is more stable. After experiencing significant profit pressures, cement companies achieved good results through joint price increases in 2024. It is expected that their performance in 2024 will lead the various sub-sectors of the building materials industry, especially in the case of cement clinker prices in the Yangtze River Delta region increasing by 10 yuan/ton after the Chinese New Year. In the decoration and building materials sector, companies with a consumer-centric advantage in the inventory logic are recommended. Investment recommendations: Based on the above analysis, it is strongly recommended to invest in companies like Beijing Oriental Yuhong Waterproof Technology, Anhui Conch Cement, Huaxin Cement, Beijing New Building Materials Public, Zhejiang Weixing New Building Materials, Dehua TB New Decoration Material, SKSHU Paint, Tangshan Jidong Cement, and Zhuzhou Kibing Group. Risk warning: Disruption in construction progress due to weather, continued sharp decline in real estate demand beyond expectations, low efficiency in the transmission of special bond funds, and the risk of outdated information.