Highlights of the morning meeting of the securities firm | The building materials industry will further deepen industrial reforms and make breakthroughs in four directions.

Yesterday, the market fluctuated and rose, with the Growth Enterprise Board Index falling by more than 1% at one point, rebounding and turning red in the afternoon. The index showed differentiation with small and medium-sized stocks performing relatively strongly. The trading volume of the Shanghai and Shenzhen stock markets was 2.34 trillion yuan, up by 640 billion yuan from the previous trading day. In terms of sectors, Siasun Robot & Automation, internet e-commerce, and logistics sectors led the gains, while pork, non-ferrous metals, and movie theater sectors were among the top decliners. As of the close of yesterday, the Shanghai Composite Index rose by 0.04%, the Shenzhen Component Index rose by 0.45%, and the Growth Enterprise Board Index rose by 0.68%. At today's morning meeting of securities firms, CITIC SEC pointed out that under the trend of "anti-insulation", the price of waterproof products in China is gradually stabilizing. CICC believes that ethylene is expected to experience a turning point after 2027. Galaxy Securities stated that the building materials industry will further deepen industrial reform and make breakthroughs in four directions. CITIC SEC: The price of waterproof products in China is gradually stabilizing under the trend of "anti-insulation" CITIC SEC stated that in the first half of 2025, the transaction area of residential land (including comprehensive land) in China turned positive year-on-year, and the enthusiasm of enterprises for land acquisition gradually recovered, which is expected to drive the improvement of new construction area. At this point in time, it is recommended to invest in the waterproof sector, firstly because waterproofing is related to the construction sector, and secondly because the concentration of the waterproof industry has significantly increased. In addition, the price of waterproof products in China is gradually stabilizing under the trend of "anti-insulation". CICC: Ethylene is expected to experience a turning point after 2027 CICC stated that currently, China's ethylene is still in an expansion cycle, and overseas capacity is facing increasing pressure to exit. According to the global capacity deployment plan, it is judged that ethylene is expected to experience a turning point after 2027. If subsequent domestic and foreign policies can strictly control the total amount of newly added ethylene, control the deployment structure of various routes, and restructure old capacity, there may be a possibility of stimulating the accelerated arrival of the industry turning point. Galaxy Securities: The building materials industry will further deepen industrial reform and make breakthroughs in four directions Galaxy Securities stated that with the advancement of comprehensive deepening reform and the acceleration of the transformation of old and new kinetic energy during the "Five-Year Plan", the building materials industry will further deepen industrial reform with high-quality development as its core goal, making breakthroughs in four directions including structural optimization, green transformation, digital upgrading, and international layout. Under the background of "anti-insulation" in the cement industry, the reduction of excess capacity is expected to accelerate, combined with the inclusion of cement in the carbon trading market, the supply-demand structure of the industry will gradually optimize, market concentration will gather towards leading enterprises, and the competitive strength of leading enterprises is expected to be further consolidated. With the rapid development of emerging industries such as electronics and new energy, the market demand for high-end fiberglass products in China will increase further. Fiberglass companies with technological research and development capabilities and scale production advantages will benefit from the growth in demand in emerging fields, providing sufficient drive for performance growth. Leading consumer building materials companies are breaking the bottleneck by synergizing the domestic and overseas markets. On one hand, companies actively promote "anti-insulation" in the domestic market to help reshape a healthy operating order in the industry and drive the restoration of their own profitability levels. On the other hand, leading companies are accelerating the layout of overseas capacity, and international business is expected to become an important source of incremental growth in future performance. This article is reprinted from "Cailianshe". Editor: Jiang Yuanhua.