Building materials performance declines the glass industry is optimistic

In the first quarter of this year, some building materials sub-sectors began to pick up profitability after last year's sluggish performance. According to the statistics of the same flush, in the first quarter, the total net profit of glass manufacturing, refractory materials and ceramics production increased by 88%, 35% and 71% respectively year-on-year. Industry sources said that since the beginning of this year, the growth rate of cement and glass production has increased and prices have risen, among which the glass industry is worthy of attention.

Recovering profitability of subdivided industries According to the same statistics, the total net profit of the building materials industry in 2012 decreased by 41% year-on-year, and it fell for the first time in three years. The first quarter of this year continued to decline, a drop of 60%.

Although the performance of building materials declined significantly, profitability of some sub-sectors began to rebound. In the first quarter, the total net profit of glass manufacturing, refractory materials, and ceramic manufacturing increased by 88%, 35%, and 71% year-on-year. The gross profit rate of the refractory and tubing industry was as high as 27.9% and 29.8%, respectively, and the gross profit margin of the glass industry increased substantially by nearly 9 percentage points year-on-year.

Digital cement network data show that since February of this year, the price of cement in East China and Northwest China has increased by more than 15% and 8%, and the current cement storage capacity ratio has dropped to 66%. According to historical data, the proportion of cement companies' performance in the second quarter was the highest in the year, and the net profit of cement plates in the second quarter of 2011 and 2012 accounted for 35% and 33% respectively. The second-quarter results of Sichuan Shuangma, Jidong Cement, Qingsong Jianhua, Qilianshan, Ningxia Building Materials, Tianshan Stock, and Qinling Cement accounted for over 50% of the annual results.

Galaxy Securities believes that the cement price fluctuates upward and the declining trend of cement inventory is confirmed. In May, cement prices may continue to increase. The areas of price increase for cement prices are concentrated in East China and Northwest China. Conch Cement, Huaxin Cement, Qilianshan and other companies are worthy of attention.

Industry sources said that although last year's demand, prices, profits, etc. are all lows in recent years, but this year, cement, glass production growth, prices rose, the building materials industry has initially shown a turning point in turning.

The glass industry is worth looking forward to entering in May. The listed company's share price has risen. Leading company CSG A share price has risen 22% since May, the Three Gorges new material rose 19%, Qibin Group rose 18%. The industry analysts believe that this year's increase in the prosperity of the glass industry is mainly due to the low raw material prices, the restoration of gross profit margin, the maintenance of gross profit margin in the second quarter, and the improvement in net profit of companies such as Jinjing Technology, CSG, and Yaopi Glass.

Glass ** market also has a good performance, Zhengzhou Glass ** since the beginning of this month hit a new low of 1,310 yuan / ton after the glass ** price has rebounded continuously over 9%. Analysts said that in May, as the traditional glass demand season, the supply and demand contradictions in the glass industry weakened, and the glass industry has basically established an upward trend of reversal.

Recently, the Green Building Materials-Energy-Saving Glass Standards Seminar was held in Beijing. Pan Aihua, Deputy Director of the Department of Raw Materials Industry of the Ministry of Industry and Information Technology, said that energy-saving glass has a large share of green building materials and has a high level of industry maturity. Therefore, glass was selected as the standard for green building materials. The first variety.

It is understood that in more than 40 billion square meters of buildings in the country, more than 90% have not used energy-saving glass. Low-E glass has become the fastest growing product on the glass market due to its good low-intensity, heat-insulating, energy-saving effect and mature manufacturing technology.

“The profits of Low-E glass industry remain relatively high. At present, there are CSG A, Qibin Group and Yaopi Glass in the listed companies that produce Low-E glass,” one analyst told the China Securities Journal.