Hong Kong stock concept tracking | Many places continue to push up cement prices. Cement profit elasticity is gradually released (with concept stocks).

Cement Network APP message, with the moderate recovery of market demand in multiple areas and cement companies continuing to stagger kiln shutdowns, coupled with the long-term low level of cement prices, the operating pressure of cement companies has significantly increased. In order to improve profitability, cement companies are actively raising cement prices. On September 24, the Ministry of Industry and Information Technology, the Ministry of Natural Resources, the Ministry of Ecology and Environment, the Ministry of Housing and Urban-Rural Development, the Ministry of Water Resources, and the Ministry of Agriculture and Rural Affairs issued the "Stable Growth Plan for the Building Materials Industry (2025-2026)". It proposed strict control of cement and glass production capacity. It is strictly prohibited to increase the production capacity of cement clinker and flat glass, and new construction and renovation projects must formulate a capacity replacement plan. It is strictly prohibited to transfer cement clinker and flat glass production capacity from non-key areas for prevention and control of atmospheric pollution to key areas for prevention and control of atmospheric pollution. Recently, the market demand in the Zhejiang area has slowly recovered, and the shipping volume of enterprises has slightly improved. In addition, the prices have generally fallen back to the pre-increase level, and the prices are running at a low level, resulting in greater operating pressure for companies. To increase profitability, starting from October 15, some leading enterprises in the province have notified Hangzhou, Jiaxing, Huzhou, Shaoxing, and other areas in northern Zhejiang to once again raise the prices of various types of cement by 30 yuan/ton. The implementation is still pending observation. In addition, it is reported that after the price increase of 20 yuan/ton in the Zhejiang Central and Southern areas and coastal markets in September, the actual transactions have generally softened secretly, with mainstream declines of around 10 yuan/ton. Zhongjin stated that the national average cement price in September was 338 yuan/ton, a month-on-month increase of +2 yuan/ton. It is estimated that the gross profit per ton of cement for cement companies in September was 58 yuan/ton, a month-on-month increase of +3 yuan/ton. It is optimistic about the marginal improvement of industry demand after entering the peak season and the price rebound driven by the implementation of price increases. Tianfeng pointed out that the H1 25 cement sector achieved revenue of 118.1 billion yuan, a year-on-year decrease of 7.7%, achieving a net profit attributable to the parent company of 5.2 billion yuan, a year-on-year increase of 1487%, with an ROE of 1.4%, a year-on-year increase of 1.3 percentage points, mainly benefiting from improvements in prices and costs. The bank believes that the bottoming out of the cement fundamentals may have occurred, and with the dual efforts of supply-side production restrictions and demand-side infrastructure support, the industry is expected to show a trend of improvement quarter by quarter in the second half of the year. Hong Kong stocks related to cement building materials: CNBM (03323), Anhui Conch Cement (00914), Huaxin Cement (06655), CR BLDG MAT TEC (01313), WESTCHINACEMENT (02233), etc.