Hong Kong stock concept tracking | Cement prices in many places have been notified to increase. Undervalued building materials sector is expected to recover profits (with concept stocks).

On February 24th, the national cement price index closed at 359.93 points, marking the first rebound in 2025. According to the China Cement Network market data center, after the Lantern Festival, due to factors such as rising temperatures and gradual resumption of construction sites, some cement companies in certain areas have notified price increases. Despite the strong willingness of companies to raise prices, market demand recovery is relatively slow, and in some areas, low construction site operation rates due to issues such as fund repayment have led to the need for further observation of actual implementation. It is reported that recently, Jiang Xun, General Manager of China Cement Network, stated that based on the trend of the national cement price index in recent years, the peak periods for price increases are usually in March-May and September-November. Although the price trend in 2023 broke this regularity, in 2024, cement prices returned to the pattern of peak increases in March-May and September-November, indicating that with the joint efforts of various industry stakeholders, the annual cement price trend is returning to its normal trajectory. The Cement Big Data Research Institute predicts that the total profit of the cement industry in 2024 will be around 16 billion yuan. Several research institutions and industry experts point out that in the short term, the cement industry will accelerate the elimination of excess capacity. At the same time, listed companies are also actively exploring new profit growth points and developing aggregates and ready-mixed concrete businesses. Galaxy Securities released a research report stating that the acceleration of infrastructure investment is expected to drive demand recovery, the industry's supply and demand contradictions are expected to ease, there are expectations of cement price increases, and regional leading enterprises are expected to achieve profit recovery. Key Hong Kong-listed cement and building materials companies include: Anhui Conch Cement (00914), CR BLDG MAT TEC (01313), CNBM (03323), Huaxin Cement (06655), CHINA TIANRUI (01252), WESTCHINACEMENT (02233), BBMG Corporation (02009), DONGWU CEMENT (00695), CONCH MAT TECH (02560).