Tencent Securities, August 14. In the morning, glass stocks bucked the market and strengthened; several stocks, including Yaopi Glass, Huali, King Kong Glass, and Kibing Group, rose 3%; in the cement sector, Jianfeng Group rose nearly 4%, and Tongli Cement rose nearly 3%.
According to the news, the General Office of the Ministry of Industry and Information Technology and the General Office of the National Development and Reform Commission recently issued the “Notice on Serious Capacity Replacement and Strictly Prohibiting New Production Capacity in the Cement and Flat Glass Industry” (hereinafter referred to as the “Notice”) in response to emerging issues with new production capacity projects in the cement and flat glass industry in some places. The “Notice” emphasizes source control and strictly prohibits the filing of new production capacity projects.
The “Notice” suggests that at present, the situation of overcapacity in the cement and flat glass industries is still serious. Provincial authorities everywhere should firmly establish the “Four Consciousness”, strengthen the “Four Self-Confidence”, enhance their political standing, fully understand the important role of the strict prohibition of new production capacity in transforming development momentum, optimizing the industrial structure, and promoting high-quality economic development, and do a good job of banning additional cement and flat glass production capacity.
CITIC Construction Investment pointed out that with the disclosure of the interim reports of leading cement and other building materials companies, the performance greatly exceeded expectations, and individual stocks that exceeded expectations ushered in a strong rebound. Industry concentration has increased, and the general logic of leading beneficiaries has not changed: first, consumption upgrades. Industries with stronger consumption attributes and a high degree of standardization have completed the increase in concentration, such as home appliances, daily chemicals, etc.; second, industries with heavier assets and higher barriers have completed the process of increasing concentration, such as cement, glass fiber, etc.; third, industry concentration is negatively correlated with industry growth, and high growth will reduce industry concentration. At the same time, concentration increases will accelerate as industry growth declines. In the future, the concentration of waterproof materials, gypsum board, plastic pipes, etc. will be further increased. I am optimistic about leading companies in the field of segmentation. Pay attention to the layout opportunities brought by the adjustments.