According to the Intelligence Finance App, cement stocks rose across the board today. As of the press release, China National Building Material (03323) rose by 6.05% to HKD 3.68; CR Building Materials Technology (01313) rose by 5.39% to HKD 2.15; West China Cement (02233) rose by 3.42% to HKD 1.21; Huaxin Cement (06655) rose by 2.96% to HKD 8.7.

CITIC Securities pointed out that since 2024, cement demand has significantly decreased, with the industry experiencing severe losses. The Ministry of Industry and Information Technology has issued the 'Implementation Measures for Capacity Replacement in the Cement and Glass Industry in 2024', which is expected to accelerate the elimination of more than 0.3 billion tons of obsolete cement clinker production capacity, reducing the actual capacity from 2.1 billion tons to within the designed capacity of 1.8 billion tons. Optimizing the supply-side capacity is expected to improve the industry ecology, potentially changing the substantial losses in the cement industry and restoring to a reasonable profit level.

HTSC pointed out that the Construction and Building Materials Index experienced two different degrees of sharp declines in October before rebounding, possibly due to weak performance in physical construction volume and expectations of improved incremental policies being implemented. Looking ahead to 2025, changes in the supply side may become more prominent, with more cement/glass policy constraints and industry self-discipline expected to increase, enhancing the debt restructuring of enterprise balance sheets and cash flow; on the demand side, stable growth efforts are focused on anticipating the stabilization turning point in real estate, as well as trends in prices of pro-cyclical sectors.