According to the Zhitong Finance APP, cement stocks collectively fell. As of the time of publication, China National Building Material (03323) dropped 7.1% to HKD 5.23; CR BLDG MAT TEC (01313) fell 4.35% to HKD 1.32; Dongwu Cement (00695) decreased by 4.26% to HKD 7.42; Huaxin Cement (06655) declined 3.8% to HKD 15.18; Conch Cement (00914) fell 2.95% to HKD 19.74; and Western Cement (02233) dropped 2.05% to HKD 2.39.

In terms of news, Western Securities pointed out that the cement industry's prosperity is bottoming out in 2025 and Q1 of 2026, with the national average price per ton of cement at RMB 367 and RMB 343, respectively, down 4.4% and 13.5% year-on-year; the revenue of listed cement companies was RMB 275.8 billion and RMB 46.3 billion, respectively, down 10% year-on-year; and the net profit attributable to the parent company was RMB 6.9 billion and RMB -200 million, respectively, down 40% and 148% year-on-year, with the industry expected to incur losses in Q1 of 2026.

Zhongtai Securities believes that as a typical high-carbon emission industry, cement, under the backdrop of weakening downstream demand, faces rising costs due to outdated internal production capacity under carbon constraints, further weakening its competitiveness and likely accelerating its exit from the market. On the other hand, local governments may reduce carbon indicators for the cement industry to develop higher value-added industries under limited carbon quotas, thereby accelerating the clearance of industry capacity. The firm believes that the current cement industry is at a profit bottom; the accelerated supply clearance will rebalance supply and demand in the industry, and the profitability of the cement industry is expected to gradually recover