Huatai Securities: The construction and building materials sector will thoroughly explore three main themes: the technological chain of new materials, the renovation of existing inventory with new models, and rejuvenation of old companies.

Huatai Securities research report indicates that as of 5M26, the trend of the building materials/construction index continues to differentiate, with glass fiber electronic cloth/clean rooms leading the way in the building materials/construction index, mainly benefiting from strong growth in the fundamentals of the sub-sectors. Looking ahead to the second half of 26, Huatai Securities believes: 1. The high prosperity of the global AI chain is expected to be transmitted domestically through domestic substitution and supply shifting from overseas; 2. The price increase brought about by the clearance of the real estate chain supply and the prosperity of the overseas chain demand will shift towards cost-driven price hikes, testing the enterprise's business model and pricing ability. It is recommended to focus on three main themes: 1. New materials benefiting from the upgrading of AI chain products that have not been fully explored; 2. Consumer building materials with mature demand for stock renovation and high pricing ability; 3. Glass substrates with large short-term elasticity in supply clearance and new demand expected to be released in the long term.