Huatai Securities: Cement companies see improved performance in semi-annual reports, with acceleration of "anti-insulation" trend.

Huatai Securities research report stated that on July 1st, the sixth meeting of the Central Financial and Economic Committee emphasized "governing low-price disorderly competition by law and regulations, guiding companies to improve product quality, and promoting the orderly exit of backward production capacity". On the same day, the China Cement Association released "Opinions on Further Promoting the 'Anti-Incumbency' and 'Stable Growth' High-Quality Development of the Cement Industry", and it is expected that the anti-incumbency in the cement industry will accelerate. Since July, many cement companies have released performance forecasts for the first half of 2025, all showing significant improvement compared to the same period last year. Huatai Securities believes that the anti-incumbency trend is expected to promote industry supply-demand rebalancing and profitability improvement. In the medium to long term, integration and globalization are still key for cement companies to combat cyclical fluctuations and achieve growth. They recommend domestically leading cement companies in energy consumption, companies accelerating overseas mergers and acquisitions, companies with significant scale and cost advantages, and companies with significant improvement in performance in the first half of 2025.