Cement enterprises are demonstrating stronger interim performance as industry-wide anti-involution efforts intensify, according to Huatai Securities' latest analysis. On July 1, the sixth meeting of the Central Financial and Economic Affairs Commission underscored the necessity to regulate low-cost disorderly competition through legal frameworks, urging companies to enhance product quality while phasing out obsolete production capacities. Simultaneously, the China Cement Association issued guidelines to accelerate "anti-involution" initiatives and stabilize growth within the sector.

Multiple cement producers have released bullish earnings forecasts for the first half of 2025 since early July, revealing substantial year-on-year improvements. Huatai Securities asserts that this anti-involution push will catalyze supply-demand rebalancing and profitability recovery across the industry. For sustainable development, vertical integration and global expansion remain critical strategies enabling cement manufacturers to mitigate cyclical volatility and secure growth trajectories.

The brokerage specifically highlights three categories of enterprises: those achieving industry-leading energy efficiency domestically while accelerating overseas acquisitions; operators with dominant scale and cost advantages; and companies registering pronounced interim earnings improvements during H1 2025.