According to the Wise News Financial APP, cement stocks are leading the gains. As of the time of publication, China National Building Material (03323) rose by 8.62% to HK$3.15; bbmg corporation (02009) rose by 6.85% to HK$0.78; Conch Cement (00914) rose by 4.47% to HK$22.2; Huaxin Cement (06655) rose by 4.03% to HK$7.74.

On the news front, according to the Cement Network, last week the national cement market prices continued to rise significantly on a week-on-week basis, with an increase of 4.2%. The price increases are mainly concentrated in the East China, Central South, and Southwest regions, ranging from 10-100 yuan/ton. Cement companies across the country, especially those in the southern region, have been operating at a loss. In order to improve profitability, they have significantly raised prices through increasing off-peak production and industry self-discipline. This upward trend is expected to continue in the future. In addition, starting from October 11-12, some major manufacturers in the Western Guangdong and CNI Zhujiang Index regions have once again announced an increase in bulk cement prices by around 20-30 yuan/ton, but the specific implementation is yet to be observed.

Everbright Securities believes that with the implementation of staggered production cuts and the arrival of the peak construction season, coupled with the bullish policies for real estate and infrastructure boosting demand, as well as the gradual implementation of subsequent carbon reduction policies, the price increase by East China cement is expected to be consolidated, while other regions are likely to follow suit in raising prices, with expectations for corporate profit recovery. Industrial Securities points out that cement profits hit bottom in the first half of the year, and industry-wide price increases during the off-season are expected to support profits in the second half of the year.