GF SEC: Stable long-term demand for consumer building materials, strong operating resilience of core leading companies.

GF Securities released a research report stating that the second-hand housing market is highly prosperous, coupled with subsidy policies, retail building materials prosperity is recovering first, and leading companies have strong operational resilience. The long-term stability of consumer building materials demand, continuous increase in industry concentration, and good competitive landscape among high-quality leading companies still have a large growth space in the medium to long term. Downstream real estate is still seeking a bottom, waiting for sales to stabilize and improve; core leading companies have strong operational resilience. GF Securities' main points are as follows: Cement: This week, the national cement market price continued to fall by 0.7% compared to the previous week. According to data from Cement Fans, as of October 17, 2025, the national average price of cement was 347 yuan per ton, a decrease of 2.33 yuan per ton month-on-month and 61.83 yuan per ton year-on-year; the national cement shipping rate was 45.20%, an increase of 0.67 percentage points month-on-month and a decrease of 10.00 percentage points year-on-year. With cement prices in some regions continuing to fall to the bottom range, it is expected that cement prices will continue to maintain a slight fluctuation adjustment trend in the later period. Currently, the industry's valuation is at historical bottom levels, and Anhui Conch Cement (A, H) and Huaxin Cement (A, H) are favored, with a focus on CR BLDG MAT TEC, Gansu Shangfeng Cement, and Guangdong Tapai Group. Glass: Float glass prices rose first and then fell; photovoltaic glass inventory showed an increasing trend. According to Sublime China Information, as of October 17, 2025, the domestic average price of float glass was 1276 yuan per ton, a decrease of 2.1% month-on-month and an increase of 1.5% year-on-year. The inventory turnover days were 29.09 days, an increase of 4.29 days compared to September 30. The mainstream order price for 2.0mm coated panels was around 13 yuan per square meter, unchanged month-on-month, with no change from last week, and the sample inventory turnover days were about 18.87 days, an increase of 25.64% month-on-month. Currently, the valuation of leading glass companies is low, and Zhuzhou Kibing Group, Shandong Pharmaceutical Glass, Flat Glass Group (A), FLAT GLASS (H), XINYI GLASS, and XINYI SOLAR are favored, with a focus on Shandong Jinjing Science & Technology Stock and Linuo Tech Glass. Fiberglass/Carbon-based composites: The market for coarse yarns is temporarily stable, and the price of electronic yarn has risen and stabilized. According to Sublime China Information, as of October 17, 2025, the mainstream transaction prices of 2400tex winding direct yarn in the domestic market ranged from 3250 to 3700 yuan per ton, remaining unchanged compared to the average price of the week before the holiday (3524.75), a decrease of 3.93% year-on-year; the mainstream price of electronic yarn G75 ranged from 8800 to 9300 yuan per ton, an increase of 3.03% compared to the average price of the week before the holiday, with high-end products E, D series, and low dielectric products maintaining high transaction prices in the market. Leading companies in fiberglass/carbon-based composite materials are clearly ahead, with optimism towards China Jushi Co., Ltd, Sinoma Science & Technology, and Jiangsu Changhai Composite Materials, with a focus on Kbc Corporation, Ltd. Risk Warning: Risks of continued downward trend in macroeconomic conditions, significant fluctuations in policies related to currency, real estate, etc., risks of unexpected increase in new production capacity in the industry, risks of rapid increase in raw material costs, etc.