Huolong Securities: Construction materials industry "anti-inner tie" breaks traditional track, high-end development opens growth space.

Huaxi Securities released a research report stating that it maintains a "recommended" rating for the building materials industry. It suggests focusing on two main lines: "anti-internal competition" and upgrading to high-end products. Huaxi Securities' main points are as follows: Review Fundamentals: In the first three quarters of 2025, there was a slight improvement in demand for major building materials products, and the "anti-internal competition" policy has improved the supply side, leading to an improvement in profitability for various sub-industries in the first three quarters of 2025. Market performance: From January 2 to December 23, 2025, the Shenwan Building Materials Index rose by 20.8%, ranking 11th among all Shenwan industries, while the Shanghai and Shenzhen 300 Index rose by 17.43%. The glass fiber industry performed well, with an increase of 90.37% during this period. Cement Looking ahead to 2026, the supply side "anti-internal competition" policy is expected to alleviate the industry's overcapacity. In the medium to long term, the cement industry will see an increase in supply-side reforms, and the supply-demand situation is expected to improve, leading to an increase in industry profitability. Focus on leading companies with high profitability: Anhui Conch Cement (600585.SH), Gansu Shangfeng Cement (000672.SZ), and Huaxin Cement (600801.SH). Float Glass Looking ahead to 2026, demand has not seen significant improvement yet, and attention should be paid to the supply side impact of the "anti-internal competition" policy. In the medium to long term, the glass industry is currently at a low point with high inventory and low prices. Positive changes on the supply side are expected to improve the supply-demand situation. It is recommended to focus on Zhuzhou Kibing Group (601636.SH). PV Glass Currently, the industry is still facing overcapacity. With the further implementation of the "anti-internal competition", the supply-demand situation is expected to improve. Leading companies with cost advantages are expected to benefit first. It is recommended to focus on Flat Glass Group (601865.SH). Consumer Building Materials As the age of houses increases, the proportion of old housing is expected to continue to rise, leading to an increase in demand for improvement in existing housing, which will drive demand for related consumer building materials. It is recommended to focus on the following targets: SKSHU Paint (603737.SH), Beijing New Building Materials Public(000786.SZ), Beijing Oriental Yuhong Waterproof Technology(002271.SZ), Zhejiang Weixing New Building Materials(002372.SZ), and Guangdong KinLong Hardware Products(002791.SZ). Glass Fiber The continuous promotion of the "anti-internal competition" policy is expected to prevent redundant construction and rapid expansion of glass fiber production capacity, and curb the trend of low-price vicious competition. In addition, the demand for high-end glass fiber products such as wind power yarn, thermoplastic chopped yarn, and electronic yarn is continuously increasing, leading to an improvement in industry profitability. Enterprises with a high proportion of sales of high-end products are expected to benefit first. Individual stocks to watch include China Jushi Co., Ltd (600176.SH), Sinoma Science & Technology(002080.SZ), and Grace Fabric Technology(603256.SH). Risk Warning: Adverse changes in the macroeconomic environment; errors in the data from the quoted sources; Infrastructure project construction progress falling below expectations; Market demand falling below expectations; Focus on the company's performance not meeting expectations.