Cement plate: Policy dominant market expectations.
Season price increase is amplitude less than expected as well as infrastructure projects extent of the recovery is slow, yes April building materials segment trend is weak the main reason. Inter-enterprise "limited production and protect the price" wishes is weak, the such as the demand is still in the doldrums, does not exclude enterprises continue to price cuts to go inventory possibilities. But we believe that in the past May was the NDRC intensive vetting infrastructure projects of the period, plus the end of June introduced urbanization rules, to a certain extent, to stimulate the cement sector rose, still remain positive. We recommend the industry leader Conch Cement (600585), Northwest infrastructure recovery biggest beneficiaries Qilian Mountains (600,720), to the inventory better performance greater elasticity Huaxin Cement (600801).
　　Glass plate: a large area price increases mortality, excess capacity pattern is hard
　　For the glass plate, we are still bearish architectural glass market, real estate under the control of architectural glass, short-term clunker. To maintain May glass tectonic plate "neutral" rating. Our investment logic has the following two aspects: First, look for vertically integrated industry chain more complete enterprise. As the glass industry involves a broader, influencing factors are more complex, with complete industrial chain, seeking product diversification enterprises in the demand sluggish cycle, with a strong ability to survive; second is to find the performance of high elasticity higher , to the greatest embody economic recovery is expected, the market bargaining stronger ability glass enterprises. Recommendations focus on: CSG A, Fang Xing Technology, Fuyao, Jin Jing technology.
Syndicated news point of view, future policy-oriented will guide Building Materials plate movements.
　　At present each enterprise stocks continued to decline, operating rate slow recovery, the overall prices are also maintained at a relatively a reasonable level. In addition, coal, soda ash and other raw material prices to weaken, and the corresponding increase business margins. 5,6 month With the infrastructural's continue to recover, as well as urbanization Bye-laws the introduction of the, construction materials plate will continue to be affected policy guidance, emergence phased opportunities. By the national policy to stimulate the water, high-speed rail, urban drainage, building energy industry in the future will gradually bottom out, becoming the focus of the market. We propose to focus on Building Research Group, Dragon Pipe, Nachuan shares and Luyang shares, etc. with new material concepts, and in accordance with policy development anticipated new building materials company.