Galaxy Securities: Quality improvement of existing stock drives structural transformation of building materials demand.

Galaxy Securities research report stated that from July 14th to 15th, the Central Urban Work Conference was held in Beijing. The conference pointed out that China's urbanization is transitioning from a period of rapid growth to a period of stable development, and urban development is shifting from a stage of large-scale incremental expansion to a stage focused on improving and increasing the efficiency of existing resources. The conference also proposed five "transformation" requirements for urban work and deployed seven key tasks. As urban development transitions to improving and increasing the efficiency of existing resources, the building materials industry is facing structural opportunities. Urban renewal, repair and renovation, and network upgrades will drive demand for pipes, waterproofing materials, coatings, and other construction materials. Leading companies with product quality advantages are expected to benefit significantly. Additionally, the advancement of urbanization will further unleash the market potential in counties, benefiting building material companies with a well-established distribution network.