Lyon: Stronger fiscal policies should help consolidate the rebound in cement demand, recommend Conch Cement (00914), Huaxin Cement (06655), China Resources Building Materials Technology (01313), and China Building Materials (03323)

The Zhitong Finance App learned that Lyon published a report saying that it is optimistic that the performance of leading cement companies may continue to improve. We recommend Conch Cement (00914), Huaxin Cement (06655), China Resources Building Materials Technology (01313), and China Building Materials (03323).

The bank believes that cement companies have once again reached a consensus on collaborative production control to promote a balance between supply and demand. Therefore, with improved demand and improved supply coordination, the cement industry should be able to achieve better profit performance next year.

The bank said that the Ministry of Finance has begun to follow up on stronger fiscal policies, and it is expected that infrastructure growth will be supported next year. Furthermore, the bank believes that the rounds of price increases that began in June this year prove that the cement industry has come out of a stage where there is a serious imbalance between supply and demand.