Zhongtong Finance APP learned that CR Building Materials Technology (01313) rose by more than 9%, as of press time, it rose by 8.21%, at HKD 1.45, with a turnover of HKD 28.9 million.

According to the news, on June 18th, the Ministry of Industry and Information Technology publicly solicited opinions on the "Implementation Measures for Capacity Replacement in the Cement and Glass Industries (2024 Edition) (Draft for Solicitation of Opinions)". Cement clinker and flat glass projects that have been recorded and new capacity expansions are strictly prohibited. If it is necessary to newly build or rebuild, capacity replacement plans must be formulated and implemented. HTSC research report indicates that the revised version of the capacity replacement method is helpful for leading enterprises to consolidate their competitive advantages, and is conducive to survival of the fittest and concentration improvement, especially for the improvement of the supply and demand contradictions in the cement industry.

Ping An Securities pointed out that since the beginning of the year, both the volume and price of cement have fallen together. On the demand side, in addition to the continued weakness of real estate construction and more rainy weather, the support from infrastructure demand is also insufficient. On the supply side, the decline in capacity utilization has increased the difficulty of coordination, some enterprises have emphasized market share, and the competition pattern has cleared slowly. The bank stated that since May, cement prices in many regions have been pushed up, moderate repairs in the second half of the year can be expected; in the medium and long term, re-balancing supply and demand requires effective clearance from the supply side, given the unfavorable outlook for the cement demand center.