Investment Rating - The report maintains an "Overweight" rating for the construction materials industry [1]. Core Insights - The construction materials sector has shown a weekly increase of 1.55%, outperforming the CSI 300 and Wind All A indices, which increased by 1.28% and 0.72%, respectively, resulting in excess returns of 0.27% and 0.82% [4]. - Cement prices have increased to 354.7 CNY/ton, up by 4.5 CNY/ton from the previous week, but down by 70.3 CNY/ton compared to the same period last year [4][14]. - The average cement inventory level is at 66.4%, a decrease of 1.7 percentage points from the previous week, while the average cement shipment rate is 44.6%, down by 0.8 percentage points week-on-week [21]. - The report highlights that infrastructure construction is expected to be a key driver for economic stability in the short term, with recommendations to focus on companies in the infrastructure supply chain and home improvement sectors [4]. Summary by Sections 1. Bulk Construction Materials Fundamentals and High-Frequency Data - **Cement**: The national average cement price is 354.7 CNY/ton, with significant regional price increases noted in the Yangtze River Delta and Southwest regions [4][14]. The average shipment rate has decreased to 44.6% [21]. - **Glass**: The average price of float glass is reported at 1163.9 CNY/ton, reflecting a weekly increase of 16.0 CNY/ton but a year-on-year decrease of 254.7 CNY/ton [48]. The inventory level for float glass is 5675 million weight boxes, down by 83 million from the previous week [50]. - **Fiberglass**: The market remains stable with no significant price changes, and the focus is on the demand recovery in the downstream sectors [4]. 2. Industry Dynamics Tracking - The report notes that the construction materials sector is experiencing a recovery in demand, particularly in the southern regions, while northern regions face challenges due to seasonal weather impacts [4]. 3. Weekly Market Review and Sector Valuation Table - The construction materials sector has shown resilience with a positive performance compared to broader market indices, indicating potential investment opportunities [4]. 4. Recommendations - The report suggests focusing on companies involved in infrastructure, home improvement, and export-oriented sectors, including Conch Cement, Oriental Yuhong, and China Communications Construction [4].

Summary of Key Points from Conference Call Records Industry Overview - The focus is on the non-ferrous metals industry, particularly copper, aluminum, and the construction materials sector, as well as the gold market and its outlook [1][2][4][5][6][9]. Non-Ferrous Metals - **Copper Market**: Short-term price surge due to U.S. tariff expectations leading to an expanded price gap between LME and COMEX. The U.S. market pricing is deviating from fundamentals. By 2026, the U.S. siphoning effect may create tight inventory risks in non-U.S. regions, but a return to fundamental pricing could occur if LME experiences warehouse congestion or tariff expectations decrease, leading to potential oversupply risks [1][5]. - **Aluminum Market**: Prices are expected to follow copper trends, with global supply affected by electricity shortages. Domestic production has peaked, and high overseas energy costs, along with investment cycle constraints, will likely lead to a decline in supply growth from 2025 to 2030. A bull market is needed to strengthen price incentives, with occasional events also pushing prices up [1][5]. Gold Market - The outlook for the gold market remains optimistic, driven by central bank purchases, ETF investments, and potential gold tokenization. Gold prices are expected to rise significantly by 2026, with current stock valuations between 10 to 13 times earnings being attractive [1][4]. Construction Materials - The construction materials sector is experiencing supply contraction under profit pressure. Recommendations include focusing on consumer building materials and leading fiberglass companies. Differentiation in product offerings is allowing some companies to achieve excess profits, with leading float glass companies expected to balance supply through self-initiated repairs, aiding profit recovery [1][6][7][8]. Fiberglass Industry - Demand for fiberglass is projected to grow in the high single digits, with approximately 400,000 tons of new domestic supply expected next year, while about 100,000 tons of overseas capacity will exit annually. High-end products remain scarce, and leading companies like China National Building Material and China Jushi are recommended [3][9]. Cement Industry - The cement industry is controlling supply through production limits and peak-shifting measures. By the end of 2025, a net reduction of over 50 million tons of capacity is anticipated, with a potential overall capacity reduction of over 10% in 2026 if monitoring and enforcement measures are effective. The industry is expected to see a moderate recovery in profit margins [11]. Phosphate and Potash Markets - Phosphate demand is significantly driven by the growth in energy storage, with total demand for power and storage batteries expected to reach 450 to 500 GWh by 2026, translating to a demand for 4.3 to 5 million tons of phosphate rock. The potash market is also expected to see stable growth, with limited new supply and high import dependence from China, leading to favorable price expectations [22][24]. Chemical Industry - The chemical industry is currently at a cyclical low but is expected to enter an upward phase starting late 2025. Industry self-discipline measures are enhancing price elasticity, with recent price increases observed in various chemical products [25][26][27]. Investment Opportunities - Recommended investment opportunities include potassium and phosphorus fertilizers, which are supported by strong fundamentals and global agricultural and renewable energy growth. Related fine chemicals like refined phosphoric acid and yellow phosphorus also show significant investment potential due to their wide applications [28].

Market Overview - In November, A-shares and Hong Kong stocks experienced a trend of high-low switching, with the ChiNext Index down 4.23% and the Hang Seng Tech Index down 5.23%[5] - The market's focus shifted towards defensive sectors as funds moved from high-valuation growth stocks to low-valuation cyclical stocks and dividend assets[5] Investment Strategy - December's market is expected to maintain an upward trend, with a short-term oscillating structure anticipated[5] - Key events include the Central Economic Work Conference and various industry conferences that may create investment opportunities[5] Key Investment Themes - Focus on "anti-involution" policies which are expected to improve industry performance, particularly in resource sectors benefiting from rising commodity prices[5] - Emphasis on overseas expansion themes, with Chinese high-end manufacturing expected to gain market share globally[5] Recommended Stocks - Zijin Mining (601899.SH) projected EPS growth from 1.21 in 2024 to 2.83 in 2027, with a PE ratio decreasing from 23.62 to 10.10[7] - Electric Power Investment (002128.SZ) expected to see EPS rise from 2.38 in 2024 to 2.75 in 2027, with a PE ratio decreasing from 10.9 to 9.45[27] Financial Performance - Zijin Mining's revenue is projected to grow from 303.64 billion yuan in 2024 to 381.84 billion yuan in 2027, with a net profit increase from 32.05 billion yuan to 75.22 billion yuan[18] - Electric Power Investment's revenue is expected to increase from 298.59 billion yuan in 2024 to 371.25 billion yuan in 2027, with net profit rising from 5.34 billion yuan to 6.17 billion yuan[27] Risk Factors - Risks include unexpected policy changes, underperformance in commercialization, and slower-than-expected product development[5]

Core Viewpoint - The fiberglass sector continues to strengthen, with international composite material "20cm" hitting the daily limit, leading to a surge in stocks of companies such as Honghe Technology, China National Building Material, Changhai Co., Shandong Fiberglass, China Jushi, and Jinan Guojiji [1] Company Summary - International composite material "20cm" has reached its daily limit, indicating strong market performance [1] - Honghe Technology, China National Building Material, Changhai Co., Shandong Fiberglass, China Jushi, and Jinan Guojiji have all experienced stock price increases in response to the market trend [1]

Core Viewpoint - The report from Huayuan Securities highlights that the two major shareholders of China Jushi are increasing their stakes, demonstrating confidence in the company's medium to long-term development [1] Group 1: Shareholder Actions - The two major shareholders are increasing their holdings based on their strong belief in the company's future prospects and long-term investment value [1] - The shareholders have committed not to reduce their holdings during the implementation of the share increase plan, further showcasing their confidence in the company's medium to long-term development [1] Group 2: Company Overview - China Jushi is backed by China National Building Material Group and is one of the largest and most comprehensive manufacturers in the fiberglass industry globally [1] - As of the end of 2024, the company will have six production bases worldwide, with an annual production capacity of nearly 3 million tons of fiberglass yarn [1] Group 3: Market Opportunities - The company is entering the high-end electronic fabric sector, which is expected to provide significant growth opportunities [1] - This move is anticipated to create a "Davis double" effect, enhancing the company's overall value [1] Group 4: Investment Rating - The report maintains an "overweight" rating for the company, reflecting positive sentiment towards its future performance [1]

Group 1: Fixed Income Market Insights - The report highlights the significant adjustment in the long-term bond market, indicating a supply-demand imbalance due to increased government bond issuance, which rose from 4.77 trillion in 2018 to approximately 13.35 trillion by December 2025 [6][7] - It is suggested that the future demand for ultra-long bonds may weaken, particularly from insurance funds, as the issuance of long-term bonds has surged, leading to increased pressure on banks' investment durations [7][8] - The report recommends addressing the supply-demand imbalance by controlling the issuance of government bonds and encouraging the central bank to purchase ultra-long bonds to alleviate market pressures [8][9] Group 2: China Jushi Co., Ltd. Insights - The report discusses the confidence of major shareholders in China Jushi Co., Ltd., with plans for significant share buybacks totaling between 6.75 billion and 11 billion RMB, reflecting a strong belief in the company's long-term growth potential [12][13] - China Jushi is recognized as a leading global manufacturer in the fiberglass industry, with a production capacity of nearly 3 million tons of fiberglass yarn and a compound annual growth rate (CAGR) of 9.72% in revenue from 2014 to 2024 [13][14] - The company is entering the high-end electronic fabric market, which is expected to benefit from increased demand driven by advancements in computing power, positioning it for substantial growth in this sector [13][14]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [4] Core Views - The two major shareholders are increasing their stakes, demonstrating confidence in the company's medium to long-term development [6] - The company is a global leader in the fiberglass industry, with a significant production capacity and a strong historical growth trajectory [6] - The entry into the high-end electronic fabric sector is expected to provide substantial growth opportunities due to increasing demand [6] - Profit forecasts indicate a recovery in net profit and earnings per share over the next few years, with a projected net profit of 3.32 billion, 3.88 billion, and 4.23 billion RMB for 2025 to 2027 [6] Financial Summary - The company's revenue is projected to grow from 15.86 billion RMB in 2024 to 21.65 billion RMB in 2027, with a compound annual growth rate of 9.72% from 2014 to 2024 [5][6] - The net profit is expected to recover from 2.45 billion RMB in 2024 to 4.23 billion RMB in 2027, reflecting a significant growth rate [5][6] - The earnings per share (EPS) is forecasted to increase from 0.61 RMB in 2024 to 1.06 RMB in 2027 [5][6] - The company maintains a healthy return on equity (ROE), projected to rise from 8.14% in 2024 to 11.30% in 2027 [5][6]

Investment Rating - The industry investment rating is "Positive" and maintained [10] Core Views - Focus on the expectation of glass cold repairs and emphasize high-quality leading companies in consumer building materials [5][6] - Cement prices continue to decline, while glass inventory has slightly decreased month-on-month [7][8] - The real estate policy outlook is improving, suggesting a focus on high-quality leading companies in consumer building materials [5][6] Summary by Sections Cement - National cement prices have continued to decline, with a current average price of 355.00 yuan/ton, down 0.65 yuan/ton month-on-month and down 77.10 yuan/ton year-on-year [26] - The cement market is entering the off-season, with a national shipment rate of approximately 45%, down 0.3 percentage points month-on-month and down 2.5 percentage points year-on-year [7][26] - The northern market is experiencing a seasonal decline in demand, while some southern regions show slight recovery [7][25] Glass - The domestic float glass market prices have stabilized after a decline, with a current average price of 60.59 yuan/weight box, down 0.59 yuan/weight box month-on-month and down 15.51 yuan/weight box year-on-year [39] - The production capacity of float glass has slightly decreased, with 218 out of 283 production lines currently in operation, and a daily melting capacity of 156,155 tons [8][36] - Inventory levels in key monitored provinces have decreased, with a total inventory of 59.32 million weight boxes, down 730,000 weight boxes month-on-month [38][39] Consumer Building Materials - High-quality leading companies in consumer building materials are expected to have bottom value, with recommendations for companies like SanKeTree, TuBaoBao, and WeiXing New Materials [6] - From a cyclical bottom and structural optimization perspective, companies in waterproofing and coatings are recommended due to significant supply exits and increased market share for leading companies [6] - If market conditions improve, the expected price performance ranking is waterproofing > coatings > pipes/hardware/gypsum board [6] Special Fabrics - Attention is drawn to the opportunities in AI special fabrics after recent adjustments, with domestic leaders like ZhongCai Technology benefiting from domestic substitution trends [9]

1. Report Industry Investment Rating No specific industry investment rating is provided in the report. 2. Core View of the Report - Commercial space is experiencing intensive catalysts, and investment opportunities in the industry are worth attention [2]. 3. Summary According to Relevant Catalogs 3.1 Commercial Space Faces Intensive Catalysts, Focus on Industry Investment Opportunities - **Three - year Action Plan for Commercial Space**: On November 25, 2025, the National Space Administration issued the "Action Plan for Promoting the High - quality and Safe Development of Commercial Space (2025 - 2027)", aiming to achieve high - quality development of commercial space by 2027, with significant growth in industry scale and innovation [3]. - **Establishment of the Commercial Space Department**: The National Space Administration has recently established the Commercial Space Department, which will promote the high - quality development of China's commercial space industry and benefit the entire industrial chain [4]. - **Satellite Internet of Things Business Commercial Test**: The Ministry of Industry and Information Technology has launched a two - year commercial test of satellite Internet of Things business, marking the transition of China's satellite Internet industry to the commercial application exploration stage and bringing investment opportunities for the entire industrial chain [4]. - **Recommended Stocks**: In the rocket direction, recommended stocks include Chaojie Co., Ltd., Gaohua Technology, Zhongheng Design, etc.; in the satellite direction, recommended stocks include Shaanxi Huada, Shanghai Harbor, Shanghai Hanxun, etc. [4]. 3.2 Main Covered Company Earnings Forecast and Valuation - The report provides earnings forecasts, valuations, and ratings for 28 companies from 2024 to 2027, including China National Building Material Group Corporation, Conch Cement, and China State Construction Engineering Corporation. Most of the investment ratings are maintained [13]. 3.3 Weekly Market Review - **Industry Index Performance**: The building and building materials industries showed certain increases this week. The building index increased by 2.43%, and the building materials index increased by 2.21%. Among them, the garden engineering index had the highest increase of 8.40% in the building sub - sectors, and the ceramic index had the highest increase of 5.60% in the building materials sub - sectors [17][19][22]. - **Stock Performance**: In the building materials industry, Hainan Ruizhe had the highest weekly increase of 22.16%, and *ST Lifang had the highest weekly decrease of 30.00%. In the building industry, Guosheng Technology had the highest weekly increase of 57.69%, and *ST Dongyi had the highest weekly decrease of 22.36% [25]. - **Infrastructure Public REITs Performance**: The average weekly increase of infrastructure public REITs was - 0.13%, the average monthly increase was - 1.23%, the average increase since the beginning of the year was 9.67%, the average 250 - day increase was 14.38%, and the average increase since IPO was 13.06% [28]. 3.4 Aggregate Data Tracking - **Real Estate Data**: It includes new construction, construction, completion, and sales area cumulative year - on - year data, land transaction data, real estate transaction data, social financing data, and infrastructure investment growth data. For example, the cumulative year - on - year growth rate of national real estate new construction area continued to decline [31]. - **Eight Major Construction Central Enterprises' New Contract Signing**: The report shows the quarterly new contract signing amounts and year - on - year growth rates of eight major construction central enterprises from 2022Q1 to 2025Q3 [73]. - **Special Bond Issuance**: It includes monthly and cumulative new special bond issuance amounts and replacement special bond issuance amounts from 2022 to 2025 [75][77][79][81]. 3.5 High - frequency Data Tracking - **Cement Data**: It includes national PO42.5 cement average price, East China regional cement price trend, cement - coal price difference index, cement inventory ratio, and cement production monthly year - on - year growth rate [84][85][87][91]. - **Float Glass Data**: It includes glass spot price, glass futures price, and glass inventory [91][92][96]. - **Photovoltaic Glass Data**: It includes glass daily melting volume, soda ash price, 2mm photovoltaic glass price, and photovoltaic glass inventory [98][102][99][104]. - **Glass Fiber Data**: It includes the prices of various types of glass fiber yarns and glass fiber inventory [106][109][110][116]. - **Carbon Fiber Data**: It includes carbon fiber average price, carbon fiber raw silk price, carbon fiber production, carbon fiber inventory, carbon fiber operating rate, carbon fiber gross profit margin, carbon fiber cost, and carbon fiber gross profit [113][117][120][122][124][126][129]. - **Magnesia and Alumina Prices**: It includes the ex - factory tax - included price of large - crystal electro - fused magnesia and alumina price [126][130]. - **Upstream Raw Material Prices**: It includes asphalt price, waste paper price, PVC price, HDPE price, etc. [134][137][135][139]. - **Physical Workload Data**: It includes acrylic acid price, titanium dioxide price, high - machine rental rate, and asphalt average operating rate [141][143][144][146].

Group 1 - The core viewpoint highlights the increasing pressure in the construction materials industry, with a focus on the expected rise in real estate policies and the potential for quality leading companies in consumer building materials to gain value [2][3] - The industry is experiencing a significant downward trend, with expectations for policy tools aimed at reducing housing burdens, such as interest subsidies or tax deductions, to support housing demand [2][3] - Key companies recommended for investment include Sanhe Tree, Rabbit Baby, and Weixing New Materials, which are seen as having bottom value and potential to benefit from policy changes [2][3] Group 2 - Cement prices have slightly decreased, with demand in southern regions recovering while northern regions face weakened demand due to cold weather [3] - The national cement enterprise shipment rate is approximately 45.5%, reflecting a month-on-month decline of about 0.4 percentage points [3] - In the glass market, prices are trending downward, with an increase in inventory levels, indicating ongoing pressure on production and sales [4] Group 3 - The focus on African supply chains includes recommendations for Huaxin Cement and Keda Manufacturing, which are expected to benefit from overseas performance and domestic market recovery [5] - The stock chain is highlighted for its potential recovery, with leading companies in consumer building materials expected to see demand restoration and structural optimization [5] - Special electronic fabrics are noted for their growth potential due to high demand and supply barriers, with companies like Zhongcai Technology positioned to benefit from domestic substitution [5][6]