Sichuan

2012 cement supply stable. In 2012, about 148 million tonnes of new capacity, compared to 2011 fall 37%. New capacity are mainly located in the South-East China and North China, Northwest, and other regions, mostly concentrated in the first half of production. Net of the Ministry of national plans for 2012 out backward cement production capacity, net increase of approximately 0.65-0 of cement clinker.8.5 billion tons, the new capacity diminishing trend. Fixed asset investment growth rate slightly down. Fixed asset investment in the construction industry about at about 4300.44 trillion. Rose 17%. About railway transport industry investment in 5300.6 trillion, an increase of 20%. Road transport is expected to achieve the fixed assets investment 1.6 per centBillion, an increase of 19%. Water resources management industry is expected to achieve the fixed-asset investment for the year 4700.49 trillion, an increase of 28%. Currently controversial investment in real estate assets of optimistic growth forecast is expected to remain around 14.5% swtor power leveling, pessimistic forecasts about for around 0% per cent. Optimistic case expected infrastructure project 2012 only pull demand for cementAbout 19.2 per cent tons, total demand for the whole year about 21.12-2.21 billion tons. Housing construction and building materials to the countryside protection slightly ease the drop in demand. Security housing and squatter areas improvement is expected in 2012 the country housing some 6.008 billion sets, conservative estimate 0.85 consumes cement-113 million tons. Building materials to the countryside in scopeIn 2012 is expected to continue to expand, promote the demand for cement and other building materials. Cement is kept relatively high corporate profits.��Overcapacity, falling prices and other factors, is expected in 2012 or average rate of profit to fall 2% about the cement industry, the overall profit margin remained at historically high levels. Mergers and main directions of energy-saving emission reduction is the industry's future development.Is expected in 2012 phase out backward cement production capacity of 1.2-130 million tons. Hebei, Liaoning, Sichuan, Shanxi and Zhejiang for eliminating backward production capacity in key areas. Future merger and they still will be the main development approach, with the promulgation of the national energy-saving incentives, a layer of cement energy saving and emission reduction, promote enterprise to high performance, low-carbon, the direction of the economyRestructuring. The cement industry is currently in a State of relatively reasonable valuations. Taking into account the 2012 slower fixed asset investment, infrastructure projects to actual demand was slightly lower than previously expected, relatively large supply and inventory pressures the old republic power leveling, and so on.����Overall giving the cement sector-neutral rating. Recommendations focus. Continuing acquisitions expansion potential and growing industry status, earnings performance flexibilityMidwest large cement company.����Grant conch cement, tianshan shares, jidong cement company long-term buy rating. (Specific content please see annex)