Shanghai Securities: DeepSeek large model strengthens AI application acceleration, focusing on opportunities in semiconductor core materials such as photoresist and polishing pads.

Shanghai Securities released a research report stating that in terms of the real estate chain, the market is expected to stabilize after the decline. It is recommended to focus on leading consumer building materials companies with resilient performance, such as Beijing New Building Materials Public (000786.SZ) and Zhejiang Weixing New Building Materials (002372.SZ). Secondly, attention should be paid to companies benefiting from the cash flow improvement due to the announcement of debt-to-equity swaps, with downstream demand coming from high receivable companies in municipal projects. Thirdly, attention should be paid to opportunities for companies to expand overseas. Regarding new materials, the AI application of DeepSeek's large model is accelerating, with increasing demand for computing power and hardware upgrades, accelerating the demand for semiconductor key materials and domestic substitution. It is recommended to focus on opportunities in core semiconductor materials such as photoresist and polishing pads, and to focus on leading electronic materials platform companies, such as Red Avenue New Materials Group (603650.SH). Shanghai Securities' main points are as follows: New Materials: Demand surge, high-end chip capacity compression, storage chip SanDisk price increase. Recently, global storage giant SanDisk announced that starting from April 1st, the prices of all consumer storage products will be raised by more than 10%. The price increase of storage chips is due to the compression of high-end storage chip capacity by major manufacturers such as Samsung and Micron starting last year, and the substantial increase in demand for storage driven by the surge in AI applications. Storage chips are an important branch of the semiconductor industry, with upstream raw materials including silicon wafers, photoresists, CMP polishing liquids, etc. With the growth in industry demand, it is recommended to focus on leading manufacturers and the domestic substitution process of key links in the industry chain. Building Materials: Supply and demand contradictions eased, "430" and "530" new policies ferment, and solar glass prices increased in March. According to data from Steel Union, solar glass prices rose in March, with the latest prices on March 7th increasing by 2 yuan/square meter for 2mm coated and 1.5 yuan/square meter for 3.2mm coated. The factors driving the price increase are the easing of supply and demand contradictions in March and the long-term low operation of solar glass since the second half of 2024, leading to pressure on companies facing losses and their intention to improve profits by raising prices. At the same time, the fermentation of the "430" and "530" new policies has also driven a surge in demand for solar glass due to the rush to install in the photovoltaic industry. Key industry data tracking: Cement: In the past week (3.3-3.7), the average national cement price on March 7th was 508.39 yuan per ton, a slight increase of 0.4% week-on-week. Regionally, East China and Central and South China increased by 1.2% and 1.0% respectively. In terms of consumption, the national cement outflow on March 7th was 2.0755 million tons, an increase of 32.5% week-on-week, showing a continued recovery in cement consumption; the cement clinker inventory ratio on March 7th was 53.58%, a decrease of 0.31 percentage points week-on-week. Continued recovery, entering March, the cement market is gradually warming up. Since March, the cement market has continued to recover. According to Bai Nian Construction Information, on March 4th and 5th, major cement brands in the Yangtze River Delta successively announced price increases, with high-grade cement prices increasing by 30 yuan/ton and low-grade cement prices increasing by 20 yuan/ton. Cement prices have been running strong. On the one hand, in the first quarter, Yangtze River Delta enterprises stopped kilns, leading to a slow growth in clinker inventory; on the other hand, with downstream demand basically recovering, demand is gradually increasing, and March to May is also the peak period for cement price hikes each year. Flat Glass: In the past week (3.3-3.7), regarding inventory, on March 7th, sample glass enterprises had a total inventory of 69.548 million weight boxes, an increase of 2.413 million weight boxes week-on-week, a 3.59% increase, further accumulating stock. In terms of production, on March 7th, the daily production of float glass was 157,200 tons, unchanged week-on-week. On the cost side, on March 7th, the price of soda ash increased by 1.23% week-on-week; in terms of inventory, as of March 6th, the inventory of soda ash enterprises was 175.99 million tons, a decrease of 1.28% week-on-week. Float glass prices are under pressure, facing pressure from increasing inventory. On the demand side, there has been limited recovery after the Spring Festival, with limited improvement in order volume, restricting demand; on the supply side, from the perspective of corporate production planning, there is an expectation of supply rebound. Photovoltaic Glass: In the past week (3.3-3.7), regarding prices, on March 7th, the market prices of 2mm coated and 3.2mm coated photovoltaic glass were 14 yuan/square meter and 21 yuan/square meter respectively, with a week-on-week increase of 2 yuan/square meter and 1.5 yuan/square meter respectively; in terms of supply, the operating rate on March 7th was 67.39%, stable week-on-week. Glass Fiber: In the past week (3.3-3.7), the price of glass fiber direct roving 2400 tex remained stable. Carbon Fiber: In the past week (3.3-3.7), prices of various types remained stable. Risk Warning Downside risks in the macroeconomic situation, policy implementation falling short of expectations, and slower-than-expected recovery in the real estate industry; data differences brought about by sample statistics; and AI applications falling short of expectations.