Cement industry: Cement prices fall below expectations

After the Spring Festival, the price shock of the cement market fell below expectations, in line with seasonal law. At present, the northeast, northwest, and north China are still in the off-season due to the weather conditions; the demand for rural markets in South China, Central China, and East China began to start, while the key projects, commodity real estate, and affordable housing projects were affected by the shortage of funds and started slowly. In the future, with the improvement of the industry supply and demand relationship and the increase in concentration, the profitability of cement companies will still have room for improvement in the future, which will in turn lead to an increase in stock prices. Currently, cement stocks are still in a state of oversold, and the valuation is at the bottom. However, due to systematic risks still not fully released, there are still downside risks in the short-term. Only after the market system risks are released and the valuations are reconfirmed, can the cement be involved.