NEWS CENTER

Building materials industry weekly report: China building materials southwest cement listed established.


Release time:

Dec 20,2011

This week's building materials industry trend: This week's building materials (Shenwan) industry index yield of -7.06, lower than the CSI 300 index -4.53 yield. In the list of 23 first-tier industry index gains in Shenwan, construction materials ranked sixth from the bottom this week. Judging from the trend this week, the market is still in a downturn. The central economic work conference held in the middle of the week set the tone to continue to implement a positive fiscal policy and a prudent monetary policy, and highlighted the emphasis on "seeking progress while maintaining stability and expanding domestic demand", which did not surprise the market, but on the last trading day, as the yuan rose more than 400 points against the dollar, the market emerged.

This week's building materials industry trend: This week's building materials (Shenwan) industry index yield of -7.06, lower than the CSI 300 index -4.53 yield. In the list of 23 first-tier industry index gains in Shenwan, construction materials ranked sixth from the bottom this week. Judging from the trend this week, the market is still in a downturn. The central economic work conference held in the middle of the week set the tone to continue to implement a positive fiscal policy and a prudent monetary policy, and highlighted the emphasis on "seeking progress while maintaining stability and expanding domestic demand", which did not surprise the market, but on the last trading day, as the yuan rose more than 400 points against the dollar, the market rebounded in recent weeks. Building materials sector due to the lack of relevant major positive release, the index fell more sharply than the market.

This week's building materials industry related information:(1) China Building Materials Southwest Cement 15 listed, integrated production capacity of 50 million tons, the planned production capacity of more than 100 million tons. (2) Henan Zhengzhou ten key projects started yesterday. (3) Shandong Rizhao 20 cement enterprises were cut off yesterday. (4) Qinghai Haidong area this year project construction completed investment 8.2 billion. (5) Hunan Yongzhou this year, 258 new villages with cement roads. (6) Cement consumption for water conservancy construction will increase by 89% this year. (7) National Development and Reform Commission: Coal supply and demand remained basically balanced in 2012.

This week's dynamic tracking of listed companies:(1) Jinjing Technology controlling shareholders increased their stake in the company. (5) Conch cement acquisition of Guizhou Anlong Nissan 2500 tons of cement project. (3) Jidong Cement received a VAT refund of 144.97 million yuan. (4) Tabai Group Announces 2012 Production and Operation Plan and Expands Limestone Raw Material Mining Scale (2) Three Gorges New Material Receives 17 million Yuan Government Award Funds. 4) Smick rental assets. Key building materials product price trend: cement prices after the first three weeks of continuous decline, this week began to enter the consolidation period. From the tracking situation, after entering mid-December, cement prices in various regions of the country have fluctuated significantly, most of which are stable. Flat glass prices in the previous continuous decline is still in the low consolidation operation.

Our view: The weak price trend of cement and flat glass reflects the current real estate regulation and control of building materials demand, the demand growth rate of related sub-industries will face a downward trend, corporate profits will be substantially affected, the building materials industry currently lacks overall investment opportunities. According to our analysis of infrastructure investment, the political cycle determines that infrastructure investment is still at a low level in 2012, and 2013 is the first year after the change of government. Infrastructure investment tends to rise sharply. We expect the demand for cement and glass industries to improve in the second half of 2012, showing a trend of low before and high after.

Recommended attention: In the first half of next year, it is recommended to allocate growth stocks to resist industry risks. Suggested concerns: Changhai shares (buy), Weixing new material (buy), Kele new material (unrated), Nachuan shares (unrated), Qinglong pipe industry (unrated), etc.