--- title: "Cathay Securities and Haitong Securities: Construction materials to counteract internal competition with tailored strategies, marginal focus on demand expectations" type: "News" locale: "en" url: "https://longbridge.com/en/news/249713177.md" description: "CITIC Securities released a research report indicating that since July, the building materials industry has shown a stronger \"anti-involution\" policy orientation, characterized by a one policy for each industry approach. The cement industry is improving supply by limiting overproduction, while the glass industry relies on self-discipline to reduce production. The market has entered an observation phase regarding the implementation of supply-side policies, with expectations for demand-side recovery becoming the focus of attention. The commencement of the \"Yaxia\" hydropower station in Tibet has triggered expectations for the recovery of investment demand, driving improvements in industry profitability. It is recommended to pay attention to leading cement companies" datetime: "2025-07-23T07:49:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/249713177.md) - [en](https://longbridge.com/en/news/249713177.md) - [zh-HK](https://longbridge.com/zh-HK/news/249713177.md) generator: "portal-rs" --- # Cathay Securities and Haitong Securities: Construction materials to counteract internal competition with tailored strategies, marginal focus on demand expectations According to the Zhitong Finance APP, Guotai Junan has released a research report stating that since July, the building materials industry has shown a stronger "anti-involution" policy orientation, characterized by tailored policies for different sectors: the cement industry has policies to limit overproduction, the glass industry is leading in self-regulated production cuts for photovoltaic glass, and the consumer building materials sector is actively improving the price competition landscape. The market is closely observing the specific implementation of supply-side policies, while the subsequent recovery of demand expectations may be the core focus of marginal market attention. The public commencement of the "Yaxia" hydropower station in Tibet has raised expectations for a bottoming recovery in market investment demand, thereby beginning to restore expectations for industry profitability. ## Guotai Junan's main viewpoints are as follows: **Cement: Using restrictions on overproduction as a lever, with the goal of improving staggered production** During the profitability boom from 2016 to 2022, the existence of capacity replacement and technological upgrades led to the phenomenon of actual capacity exceeding designed capacity in the industry. Currently, the main policy lever expected to counteract involution in the cement industry is to limit overproduction, meaning stricter restrictions on daily and annual production volumes for enterprises, with future core attention on the implementation of policy pilots. It is estimated that if fully implemented, the average capacity utilization rate of the national cement industry could rise from 50% to 70%. More critically, it can quantify the constraints on the supply side of staggered production plans, which is conducive to further enhancing the success rate of stabilizing prices through staggered production. Recent hydropower projects have catalyzed expectations for a bottoming recovery in demand for key industry projects, achieving a certain resonance between supply and demand expectations. In terms of targets, recommended cement leaders include: Conch Cement (600585.SH), Huaxin Cement (600801.SH), Shangfeng Cement (000672.SZ), and TAPAI GROUP (002233.SZ). **Glass: Photovoltaic core focuses on self-discipline, float glass leverages energy consumption** **Photovoltaic Glass:** The photovoltaic industry is currently highly focused on counteracting involution, while the photovoltaic glass industry mainly relies on leading enterprises to self-regulate and proactively reduce production to improve the supply-demand landscape. However, the industry's action speed is currently ahead of the entire photovoltaic industry chain. It is expected that a production cut of about 30% in the photovoltaic glass industry is necessary to achieve supply-demand balance, and the degree and pace of implementation by leading industry enterprises will be the core tracking focus. **Float Glass:** The float glass industry currently has no mandatory policies, unlike the supply-side environmental shutdown policies of 2016. The current lever for counteracting involution may lean towards optimizing energy consumption structures, focusing on standardizing gas usage in the industry and potentially increasing stricter conditions for some production lines to replace environmental permits. In some regions, production costs may rise, and post-cold repair, a certain acceleration can be expected to benefit the overall supply-demand improvement in the industry. In terms of targets, recommended leaders in photovoltaic and float glass include: Flat Glass (601865.SH), Xinyi Glass (00868), and Qibin Group (601636.SH). **Consumer Building Materials: Stabilizing the landscape, the proactive anti-involution process has already begun** Currently, while there are no mandatory policies observed in various sub-sectors of consumer building materials, the industry's proactive anti-involution to improve profitability is increasing. As a result, some sub-sectors have already begun to recover prices this year, such as waterproofing, piping, and coatings. The underlying logic is that industry growth expectations are becoming more rational, and the landscape and prices have already bottomed out. After more than three years of deep adjustments in the real estate sector, the medium- to long-term certainty of consumer building materials lies in its stable landscape, with leading companies expected to continue to outperform and further contribute to growth through structural optimization, category expansion, and overseas layout In terms of targets, we recommend leading companies in the consumer building materials sector: Dongfang Yuhong (002271.SZ), Keshun Co., Ltd. (300737.SZ), and Beixin Building Materials (000786.SZ), etc. **Risk Warning** Macroeconomic policy risk; raw material cost risk ### Related Stocks - [002233.CN](https://longbridge.com/en/quote/002233.CN.md) - [600585.CN](https://longbridge.com/en/quote/600585.CN.md) - [00914.HK](https://longbridge.com/en/quote/00914.HK.md) ## Related News & Research - [Anhui Conch Cement files HKEX next-day return disclosing share repurchase for cancellation](https://longbridge.com/en/news/296463043.md) - [Negative Link Announces Global Expansion and Next Phase of Growth](https://longbridge.com/en/news/296644416.md) - [Anhui Conch Cement files HKEX next-day disclosure return on share buyback](https://longbridge.com/en/news/296328897.md) - [Anhui Conch Cement files HKEX next-day disclosure return on share buyback at RMB 17.4](https://longbridge.com/en/news/296197934.md) - [Tai Hing Group Holdings (SEHK:6811) Stock Price Tracks Profit Rebound Against Thin Margins](https://longbridge.com/en/news/296688951.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**