HK Stock Market Move | Cement stocks collectively fell, the industry's prosperity in the first quarter hit bottom, supply was cleared to accelerate supply-demand rebalancing.

The cement stocks collectively fell, as of press time, CNBM (03323) fell by 7.1% to 5.23%; CR BLDG MAT TEC (01313) fell by 4.35% to 1.32 Hong Kong dollars; DONGWU CEMENT (00695) fell by 4.26% to 7.42 Hong Kong dollars; Huaxin Building Materials Group (06655) fell by 3.8% to 15.18 Hong Kong dollars; Anhui Conch Cement (00914) fell by 2.95% to 19.74 Hong Kong dollars; WESTCHINACEMENT (02233) fell by 2.05% to 2.39 Hong Kong dollars. On the news front, Western pointed out that the cement industry has reached a low point in terms of prosperity in the first quarter of 2025 and the first quarter of 2026, with the national average price of cement per ton being 367/343 yuan, a year-on-year decrease of -4.4%/-13.5% respectively; the revenue of listed cement companies was 275.8/46.3 billion yuan, a year-on-year decrease of -10%/-10% respectively; net profit attributable to owners of the parent company was 6.9/-0.2 billion yuan, a year-on-year decrease of -40%/-148% respectively, and the industry suffered losses in the first quarter of 2026. Zhongtai believes that as a typical high-carbon emission industry, cement faces the challenge of rising costs due to outdated production capacity under carbon constraints in the backdrop of weakening downstream demand, further weakening its competitiveness and accelerating its exit; on the other hand, local governments may reduce carbon quotas for the cement industry in order to develop higher value-added industries under limited carbon quotas, thus accelerating the elimination of industry capacity. The bank believes that the cement industry is currently at a profitability bottom; accelerated supply clearing will rebalance supply and demand in the industry, and the profitability of the cement industry is expected to gradually recover.