CPC Securities: Release of Carbon Reduction Opinions, Focus on Cement and Glass Supply Clearing Opportunities

China Post Securities released a research report stating that cement demand is still in the stage of recovery, but there is a gap in outflow compared to the same period last year. Infrastructure funding is relatively well secured while real estate construction is under pressure. Terminal demand for glass is flat, and prices are weak. The price of glass fiber coarse sand is expected to rise, and electronic yarn is driven by high AI drive. The profit of consumer building materials has bottomed out, and the price increases of multiple categories are expected to improve profitability. It is suggested to pay attention to the cement and glass industries that benefit from the reduction of carbon emissions. And to focus on companies such as Zhuzhou Kibing Group (601636.SH) and Anhui Conch Cement (00914). Main points of China Post Securities: Event On April 22, the General Office of the CPC Central Committee and the General Office of the State Council issued the "Opinions on Doing a Good Job in Energy Conservation and Carbon Reduction at a Higher Level and with Higher Quality", which proposed to strengthen industrial energy conservation and carbon reduction. It aims to comprehensively improve the energy efficiency levels in key industries such as steel, non-ferrous metals, petrochemicals, chemicals, building materials, and strengthen building energy conservation and carbon reduction. By combining the renovation of old communities and clean heating, actively promote the energy conservation and carbon reduction transformation of existing buildings, and strengthen the energy conservation and carbon reduction management of buildings. Cement Cement is still in the stage of demand recovery, but the outflow volume still lags behind the same period last year, and the recovery of demand is average. Infrastructure funding is relatively secure, but there is still pressure on real estate construction demand. In the medium term, the cement industry's production capacity is expected to continue to decrease under the policy of restricting overcapacity, and the increase in capacity utilization rate will bring about significant profit elasticity. It is recommended to pay attention to Anhui Conch Cement, Huaxin Building Materials Group, and Gansu Shangfeng Cement. Glass Recently, there has been an increase in cold repair shutdowns of production lines, but terminal demand is still flat. Due to the weak short-term downstream demand combined with the release of speculative supply in the previous period, prices are still weak. With the background of rising costs, there may be unexpected production reductions. It is suggested to pay attention to Zhuzhou Kibing Group. Glass fiber The demand for coarse sand is still good, supported by structural rigid demand and rising costs. Short-term prices are still on the rise. The electronic yarn segment is prosperous, driven by the demand from the AI industry chain. The industry's low dielectric products are experiencing a simultaneous increase in quantity and price. The three generations of products are clearly upgrading the product structure. Industry demand is expected to explode with the growth of AI. It is believed that the industry's demand will continue to follow the trend of simultaneous increase in quantity and price. Companies to watch include China Jushi Co., Ltd, and Sinoma Science & Technology. Consumer building materials The industry's profitability has hit rock bottom, and prices have experienced years of competition with no downward space. With the help of the anti-inner-loop policy, the industry has a strong demand for price increases and profit improvement. In 2025, waterproofing, coatings, gypsum board, and other categories have continued to issue price increase letters, and industry profits are expected to bottom out, with the possibility of profit improvement in 2026. Companies to watch include Beijing Oriental Yuhong Waterproof Technology, Keshun Waterproof Technologies, SKSHU Paint, Beijing New Building Materials Public, and Dehua TB New Decoration Material. Risk warning The implementation of the anti-inner-loop policy may not meet expectations, and there is a risk of unexpected downward trends in real estate and infrastructure demand.