Gf Securities research indicates that China's building materials sector continues to witness positive supply-demand dynamics, creating strategic allocation opportunities at cyclical lows. Key observations:

1. **Construction Materials**: - Q3 saw continued downturn, but leading firms demonstrated revenue and profit resilience. - Long-term stability remains intact with industry consolidation benefiting quality leaders like 3Trees, Tubaobao, Hongbo Group, Oriental Yuhong, China Liansu, Beixin Building Materials, Weixing New Materials, Dongpeng Holdings, Kinlong Hardware, Arrow Home, Monalisa, Keshun Waterproof, ZT New Material, and Wangli Security.

2. **Cement**: - National cement prices dipped 0.1% WoW to 351 yuan/ton as of Nov 7, 2025, with shipments stable at 45.93%. - Bottom-range pricing suggests limited volatility ahead. Watch Huaxin Cement (A/H), Conch Cement (A/H), Shangfeng Cement, China Resources Building Materials Tech, and Tapai Group.

3. **Glass**: - Float glass prices rose 1% MoM to 1,208 yuan/ton despite 15.1% YoY decline. Inventory days fell to 29.61. - Solar glass inventories grew 6.43% to 24.06 days. Undervalued leaders include Kibing Group, Xinyi Solar, Flat Glass (A/H), Xinyi Glass, and CSG Holding.

4. **Fiberglass/Carbon Composites**: - 2400tex direct roving held steady at 3,250-3,700 yuan/ton, while e-glass maintained 8,800-9,300 yuan/ton. - Premium products sustain pricing power. Track China Jushi, Sinoma Science & Technology, Honghe Tech, and Changhai New Materials.

**Risks**: Macroeconomic slowdown, property policy volatility, capacity overexpansion, and raw material inflation.