In the 2013 annual report, the overall profitability of building materials listed companies has been improved, the operating income and net profit have increased, and the expense ratio has been effectively controlled, but the industry benefit and profitability are still lower than the two better historical stages from 2003 to 2004 and 2009 to 2011.

In the first quarter of 2014, the overall revenue and profit of building materials listed companies maintained a growth trend, significantly better than the same period last year, and the profitability was at a relatively good level in the historical period, during which the expense ratio also showed a year-on-year decline, but the receivables were slightly less than the same period last year, showing a certain operating pressure.High quarterly profit growth is expected to be unsustainable.

Cement plate 2013 annual report and 2014 first-quarter report is far better than the overall situation of the cement industry.The 2013 annual report and the first quarter of 2014 cement sector reversed the profit decline in the same period last year, and the profit increased significantly, especially the first quarter of 2014 net profit growth of 1239.58%; profitability, management efficiency and cost control have all improved, but the turnover rate of receivables decreased, showing some pressure.Due to the initial trend of cement prices in 2013 and the uncertainty of real estate demand, it is expected that the cement sector year-on-year profit growth may slow quarter by quarter.

Glass plate in 2013 annual report and the first quarter of 2014 net profit increased significantly, but the main reason for its profit growth is higher than the revenue growth is the decline of the comprehensive income tax rate in the same period, profitability in 2013 annual report has improved, the profitability of the first quarter of 2014 has shown slightly decreased year-on-year.Due to the uncertainty of real estate demand and overcapacity, it is expected that the performance growth of the glass plate in 2014 is in great uncertainty, facing the risk of economic downturn.

Pipe plate 2013 annual report and 2014 quarterly net profit growth, but profitability stability, net profit growth is lower than the same revenue growth, during expenses increased, and 2014 has shown signs of slowing profit growth, the performance in 2014 pipe plate growth is expected to face greater pressure, differentiation between stocks.

Steel, petrochemical and other downstream industries demand, leading to the refractory plate to increase income does not increase profits.The 2013 annual report of the refractory sector continued the previous two years of not increasing the profit situation. The situation in the first quarter of 2014 improved, the net profit increased, and the profitability also improved.As the downstream demand will needs time, it is expected that the overall performance of the refractory sector is not optimistic.The performance differentiation of other building materials companies is obvious, showing the strong constant strong situation.Among them, the companies with high gross profit rate on sales and strong profitability mainly include AIA ceiling, Beixin Building Materials, Karl New Materials, Construction Research Group and Oriental Yuhong. The net profits of these leading companies in related fields have also maintained good growth in recent years.

It is expected that the demand of the building materials industry is still expected to maintain the growth trend in 2014, and the growth rate may slow down; the leading companies with a strong competitive advantage are still expected to maintain the growth trend, and already have a certain valuation advantage.Recommended investment rating to the building materials industry