In the first quarter report of the building materials industry, what are the investment opportunities?

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In the first quarter report of the building materials industry, what are the investment opportunities?

2022-05-19 18:08:20 16 ℃

abstract:

1. On the whole, the first quarter is a stage of a relatively high performance pressure in the building materials sector, but it also belongs to the stage where pessimism expectations are sufficient. Looking back in the second quarter, the pressure is still great, but the third quarterly report is likely to see the marginal improvement. In particular, in order to cope with the downward pressure on the economy, many policies have been relaxed. Building materials are the best in the real estate industry chain. It also benefits from the steady growth of infrastructure.

2. As a cycle section, the bottom of the stock price will often lead the bottom of the fundamental performance, so at the current point of view, it is likely to be the moment when the building materials industry is the most pressure, and it is also a time that is worth the layout. Develop in a good direction. You can pay attention to the ETF and its connection funds of Building Materials.

Live theme: In the first quarter report of the building materials industry, what are the industry investment opportunities?

Live guest: Huangyue Building Materials ETF Fund Manager

Live time: 13:30 on May 16th

Last weekend, the central bank announced that the interest rate of the first home loan was reduced by 20 BP. Today we happen to talk to you about the investment opportunities of the building materials sector. Building materials are actually a sub -industry industry in the Grand Property Industry Chain, and it is the best -funded industry in the real estate industry chain.

Many investors may be unfamiliar with the building materials sector. Today I will briefly introduce a few sub -industry industries in the building materials sector and their own investment logic. Then talk to you about the recent situation of this sector, including the performance of the first quarter report and annual report disclosed at the end of April. Finally, I will talk to you the outlook on the future investment opportunities of the building materials sector.

On the whole, the building materials sector in the first quarter is a stage of high performance pressure. By the report, we believe that it may be similar compared to the first quarter report. Looking back, some positive changes will occur in this section in the third quarter. Building materials are the cycle sector. For the cycle sector, the bottom of the stock price will often lead to the bottom of the fundamental performance. Therefore, it is also the time when the building materials sector is more worthy of layout. Next, let's take a look at the construction materials sector. There are about those sub -industry.

01

Investment logic of various detailed industries of building materials

Building materials are mainly divided into three categories: cement, glass, consumer building materials (home improvement building materials), cement and glass belong to traditional building materials.

The upstream and downstream building materials are mainly real estate. Normally, real estate agents get land and start construction within half a year. The construction will be used in the starting stage. The sales of the housing housing are generally about 1-15 and a half years. According to different local policies, some of the main structures are required, and some are strict (requiring the house must be completed to be used to pre -sale). In short, pre -sale will be pre -sale during construction. Waterproof materials are used during construction. There are several main parts in the real estate field. The most familiar to everyone is the waterproof of roof, kitchen, and bathroom. For the perspective of materials, the main point of use is the basement and ground waterproof, which is done during construction.

After completion, other building materials will be used, glass and wall coatings. If decoration is made, it will involve pipes, gypsum boards, tiles, etc. These are often used after completion.

On the whole, building materials are the industrial chain carried out around the construction of real estate, construction and completion.

The correlations of each section industry and real estate will be different. For example, there are three main parts of the cement: real estate, infrastructure (including road construction and bridge construction, venue construction), and rural construction. It also includes the transformation of old communities, upgrading municipal facilities, construction of transportation infrastructure, parking lots, highways, trunk railways, and business circulation networks, which will actually involve the use of cement. Several downstream of cement -real estate, rural construction and infrastructure each account for about 1/3.

The downstream of the glass is mainly real estate, about 70%of the real estate. As for home improvement building materials and other building materials, the main downstream is also real estate. Of course, there are some subdivisions in it, such as the infrastructure also uses pipes and waterproof categories. There are also integration of photovoltaic roofs and photovoltaic buildings in recent years, which is also an emerging growth point for waterproof materials.

1. Cement

From the perspective of the specific sub-industry, cement is obvious short-legged variety, the cement land transport radius is about 200-300 kg, the water transport is slightly farther, and about 400-500 kg. The shelf life is relatively short, and it is related to a few weeks. If it is not used, it may be moisture. The unit price of cement is very low. If the cost of transportation is increased, there is no advantage in the price, so the cement is a short -legged variety as a whole.

From the perspective of the cost of cement, raw materials account for about 20%, and energy costs account for about 60%. Its cost end involves raw materials and limestone. The cost of corporate costs in the mine will have a significant advantage. At the same time, it has a lot of costs involved in burning. , Electricity and coal add up to about 60%of its cost. Therefore, the rise in coal prices is not good for cement, because it has relatively increased its entire cost.

In addition, the regional concentration of the cement industry is very high, because it is a variety of short -legged, it belongs to one of the best concentrations of the domestic cycle sector. Its top five companies can reach about 60%nationwide. Because it is a regional product itself, you see that there are leading companies in North China, East China, Southwest and other places. The concentration of these areas will be higher in the region. Overall, the competitive pattern of the cement sector is still good. Due to the high concentration of enterprises, the overall bargaining ability is strong. Cement reform in 2016 and since 2018 have maintained a relatively high level of profit levels for many years. In 2018, the ROE of the cement sector can reach more than 30%. It is an industry with high return on investment. Cash flow is better. The dividend rate is also relatively high. However, the profit pressure of cement this year is relatively large. Since April, the East China region represented by Shanghai has a super routine impact. This one will introduce to everyone when we introduce the first quarterly report.

2. Glass

Glass, like cement, is also relatively short in transportation, and the industry concentration is relatively high. The top five companies can account for more than 50%, which is also an industry with a better competitive pattern. The periodic of glass is stronger than cement. The characteristics of cement are relatively low in stoppage production. The blast furnace of glass and steel is very similar. If the production line is cooled down to stop the work and then restarts, it is basically a reckless cost of tens of millions of other. Speaking of its strong periodicity, most glass production companies are willing to carry it first when the industry has a downward cycle, hoping to carry the entire cycle downward. Cement is relatively flexible, and the restart cost is very low.

In this case, when an industry declines in the cement sector, cement manufacturers can maintain the profit level in a relatively high position by cutting production and preservation. Relatively speaking, the glass is more cyclical. When the industry is downward, the manufacturers will often die for a while. It will not be able to carry out production before it can be reduced. At this time, it will usher in the industry level.

About 70%of the decline in the glass are real estate, and the others include a slightly more used in automotive glass. In recent years, most of the high value -added areas have been entered, including the glass of the mobile phone screen. Within the scope of our discussion.

In addition to real estate and cars, many manufacturers have also involved high value -added areas in recent years, such as electronic glass, mobile phone screens, and Corning Glass. They are also a deep -processed glass. Medicinal, medical glass, reagent bottles, etc. It should be said that the competition pattern of glass is also good, but its cyclicality is stronger than cement.

Both cement and glass have a great characteristic, and it is basically difficult to add more than so far because of our requirements for carbon peaks and carbon neutrality. In fact, since the round of supply -side reform in 2016, glass and cement have basically strictly limited new production capacity.

You can see the big market of steel and coal in the past two years. Most of the investment logic is that the production capacity cannot be added, and even reduced production capacity (for carbon neutrality). The demand is relatively stable. For example It has caused a tight balance of supply and demand. In fact, these logic are also staged in the building materials sector represented by cement and glass. The reason why cement can maintain a good profit level for so many years is also because of new production capacity. In this case, the periodic of the entire industry will gradually decrease.

3. Home improvement, building materials/consumer building materials

In terms of stock market value, home improvement and building materials are mainly waterproof materials, and some pipes, hardware, and coatings belong to the category of home improvement building materials.

Household clothing and building materials have long -term investment logic, which is not exactly the logic of cyclical stocks. Take waterproofing as an example. In fact, the waterproof industry is a very mixed industry before many years. Its buyers are often the subcontractor dedicated to waterproofing in the construction team below the real estate developer or real estate developer. When the customer's use period is too long, many years ago, they often did not pay much attention to the quality of waterproof. The main importance was cost, and I hope to be as cheaper as possible.

Everyone will find that there have been serious waterproof problems in many real estate in the past few years. Later, as the growth rate of the real estate industry gradually declined, from the golden age entered the era of silver, real estate developers have also paid more and more attention to product power in recent years. If the quality of real estate products appear negative public opinion on its future sales and brand reputation, it will have a great impact. From the perspective of real estate developers, they will pay more and more attention to the quality of waterproof materials.

On the other hand, from the perspective of industry supervision, it also puts forward increasing requirements. For example, in 2017, the special action plan for the quality improvement of waterproof products in buildings, and proposed that the designs of the roof waterproof design are not less than 20 years, and the period of waterproof design of the bathroom is not less than less than less than less than less than less than 20 years. 15 years. Last year, some local related documents were introduced in Sichuan Province, mainly for the refinement of relevant documents in 2017 and more stringent standards. At that time, a relatively large wave of markets also appeared in the waterproof sector.

On the one hand, customers are willing to improve product quality at the industry level. On the other hand, from the perspective of industry supervision, it also puts forward increasingly stringent requirements. In this case, the concentration of the entire waterproof industry has increased rapidly. When some big brands of real estate developers choose products, they find that most of the products in this market are mixed with fish and dragons. There are only a handful of real products that are excellent quality and relatively acceptable prices. At this time The concentration is very fast. Therefore, the waterproof itself belongs to a relatively segmented field in the building materials industry chain. However, due to the pursuit of product strength/product quality and higher quality, the leading company in the mixed market of fish and dragons has grown rapidly. Including this year's first quarterly report, relatively strong pressure resistance is also a leading enterprise in waterproof, and these leading companies have also begun to use its current funding and cost advantages, especially the advantages of sales networks and sales channels to start expanding the same category. Other building materials, such as waterproofing, may consider making paint. If you make paint, you can consider waterproofing and plate materials.

On the whole, the main logic of home improvement and building materials is the rapid improvement of industrial concentration. After all, the industry is facing a state of mixed fish and dragons and low concentration. In this process, the space for industrial concentration is very large, which also brings the operating performance of leading enterprises. Raise rapidly.

For home improvement and building materials, raw materials are also the main cost item. There will be differences in the sub -section industry and the company in the downstream. The customer group is mainly divided into several categories. Business), such customers have operated the most pressure since last year. Last year, real estate developers' cash flow was very tight, including their use and control of pre -sale funds. In this case, the construction materials enterprise with Big B as the terminal customer has also suffered a lot of pressure. The cash flow caused very practical pressure, and many payment cannot be settled on time.

There is also a class of customer groups that are small B, which are mainly construction teams and update projects. This is relatively small. There are also some C -terminals, such as coatings, make some house updates, buy directly, as well as plaster boards and plates, and will be purchased directly by decoration at home. Relatively speaking, the customer group is a small B and C -terminal companies in the past two years a little less.

02

Interpretation of the first quarter report of the building materials industry

Next, let's take a look at the overall situation of the first quarter report of the building materials industry. In terms of subdivisions, the most stressful in the first quarter is home improvement and building materials. Looking at it, relatively highly stressing cement, especially in April, the price of the entire cement has been significantly reduced, which will directly affect operating performance.

From the perspective of the first quarter, the cement performance is relatively better, and the net profit decreased by more than 20%year-on-year. The home improvement building materials and the net profit of glass decreased by about 40-50%year-on-year. This is a relatively large pressure. Especially in the first quarter In the promotion, the net profit at the first quarter of the industry has decreased by nearly 20%, the gross profit decreases by about 1 point, and the cost level increases by about 1 point. Overall, this is probably the case.

It is mainly due to the most stress in real estate in the first quarter. You can see that the downward speed of real estate in the first quarter is very fast, including the April data disclosed today. In April, the new construction area decreased by about 26%, and the sales area decreased by nearly 30%. In particular, the funds in place of real estate companies also had a significant downward pressure, which was about 23.6%year -on -year. In this way, the upstream and downstream of the entire real estate industry must not be good in the first quarter. Now the main problem is that the real estate inflection point can be seen in the second, third quarter or future, thereby bringing related opportunities in the industrial chain.

If you look at the stock price of the building materials, you will find that the stock price of the building materials has long been almost bottomed out. Since November last year, a large wave of rebound began. The index level has risen by about 20%. In the first quarter, the entire real estate pressure was relatively large, and it fell back. The wave starting in mid -to -late March at that time, the market was about 3,000 points. During that wave of rebound, the entire building material sector also belonged to a large bomb -up plate. It rebounded about 10%from the index level. Going down.

We will find that the entire building material sector has been a broad trend since November last year. It has not followed the entire operating performance further. At least the entire center is relatively stable. This is actually because many real estate policies have since last year since last year. It began to be implemented in the fourth quarter.

If you look at the real estate -related situation, it was first October last year, mainly because of the customer's personal credit level. Last year, the real estate was significantly down from the third quarter. Especially at that time, you would find a few problems when buying a house. The credit limit is generally insufficient. When the loan is loan, the bank will say that the amount is used up. In addition, even if there is a quota, the entire credit approval cycle will be long. Since October, the personal mortgage amount of many commercial banks has begun to be restored, and the approval time has been relaxed. In this case, the entire market has improved with expectations. Especially in December last year The easement includes "meeting the normal house purchase needs of the people". The overall is still expected. In fact, everyone knows that the probability of real estate in the first quarter of this year will still have inertia, but it is expected to advance, driving a wave of markets. Later, as expected in the first quarter, it was found that the pressure of the entire real estate was still relatively large, especially since the relaxation of residential credit last year, that is, a wave of retrospective for residents in November last year. The one -time release, but from December last year to April of this year, residents' medium- and long -term loans are still not ideal, and objectively speaking, it is still relatively stressful. In other words, the current residents do not have a strong willingness to buy leverage to buy a house. Perhaps they have no confidence in house prices, maybe they have no confidence in future personal income. In short, the leverage of residents has not been added.

In the process, the policy has actually been relaxed. Due to the policy of the city, many commercial banks in first -tier cities in Guangzhou have lowered the level of LPR's mortgage interest rates. Many cities have been adjusted in restrictions on purchases and other loans. Including the adjustment of the lower limit of interest rates mentioned in the first home loan last week, from the perspective of the top -level design, it also left a lot of space for various local governments.

03

Future investment outlook for building materials industry

On the whole, we should say that we are standing at the current point. The stock price has fully reflected this expectation. Looking back, real estate is still developing in a good direction. On the whole, the proportion of real estate in the domestic GDP is too high, and basically to reach nearly 20%, especially the real estate -related industrial chain is very long. In addition to real estate companies, it also involves the upstream and downstream industrial chain, including home improvement and light industry. Furniture, decoration, and home appliances, these belong to the entire real estate industry chain, which not only affects our economy, but also affects our employment.

In the context of the stable economy this year, especially the recent political bureau meeting also mentioned the efforts to complete the economic growth goals. In this big context, if you want to complete this economic growth goal, the real estate side will undoubtedly achieve further repair. Personally, I think that the worst nodes in real estate -related industrial chains are now the worst, especially when we look at the stock price, in fact, we have continued to have the fundamentals of the funding game.

On the whole, the current facts are the pressure of downward in the first quarter. Objectively speaking in the second quarter, it is possible that the downward pressure of real estate is larger than the first quarter. In April, due to the epidemic factors, all industries (not only real estate, but also involved construction buildings. Building materials) have a one -time negative impact. This is a fact that has happened, and it is currently alleviating. But overall, it should be said that the pressure on the entire building materials in the second quarter is still great, so there may be relatively large pressure in the second quarter report, but we will likely see the marginal improvement in the third quarter report, especially real estate. In response to the downward pressure on the economy, many policies have been relatively relaxed, especially the lower limit of the central bank and the CBRC last weekend to relax the first house LPR-20BP. How much cost will the entire home buyer alleviate? It doesn't seem to be too much, but it shows more gestures, or it is worth looking forward to.

We judge from the perspective of reverse push. It should be said that this year, the current point is likely to be the most pressure of the entire industry, and then look back at the direction of the high probability edge.

If you return to the performance of the stock price, the cycle sector market is often speculating expectations. It is expected to lead the fundamental inflection point. Everyone will often see the turning point of the stock price leading to the fundamental turning point. For the building materials sector, including the real estate industry chain -related sector, a large amount of funds will continue to play in the process of continuous game in the process. Real estate turning point, then take a wave of rebounds. After walking a wave of rebounds, everyone has seen the performance that has not improved, and the downward pressure of the real estate is still relatively large. At this time, it will often fall to maintain such a shocking situation.

But from the perspective of winning rate, I personally think that the closer to the third quarter, the overall winning percentage will become higher and lower, rather than getting lower and lower. The trend of the stock price may be a shock. During the shock, the market suddenly realized that the fundamental face really improved. At this time, there may be a Davis double -click. It is expected to be fulfilled and the operating performance starts to rise.

I personally think that the building of the building materials is a section that is suitable for falling down the dual layout. It is truly chasing the high or rising to the early high point. At this time, it may have to wait or be cautious. At present, its operating performance may not have improved, because everyone expects that the low point can be seen in the third quarter of this year or afterwards, and it may even achieve positive growth throughout the year (if we press the GDP growth rate of 5.5 to grow growth rate of 5.5 GDP growth rate It is expected), but everyone does not know where its inflection point is, there will be countless funds games in it, so I personally think that this sector is very suitable for a plate that is very suitable for dirty layout, especially at the current low point. The higher the winning rate, of course, when the inflection point appears, it is difficult to judge. Looking back later, it should be said that the expectations of the building material sector are developing in a good direction, because the first quarter of this year is facing tremendous pressure. One is the increase in cost end, including the best performance of the first quarter of this year. Building materials are very unfavorable, because the main cost of traditional building materials, including cement and glass is energy consumption, and energy is mainly coal burning, so the cost end pressure is relatively high. Including home improvement and building materials, the rise in raw material prices is not good for it, but since the first quarter, we have gone down the entire PPI. Recently, we have seen the price of commodities. In addition to crude oil, we also remained at high, copper, coal and other products The price of futures goes down, which also reflects the expectations of insufficient demand. Looking back in the second quarter, the pressure on the entire cost end will be relieved, and the more the cost of the cost will be smaller and smaller.

Looking at the cash flow again, because the pressure of real estate is too great, the cash flow of the entire building materials sector is objectively worsening, but afterwards, with the restoration of real estate in the future, of course, which point can be repaired, of course, it can usher in repair. June, July, August or September? To be honest, we don't know, but we think that the direction is relatively certain, but the rhythm is uncertain. On the whole, it should be said that cash flow is also developing in a good direction, including its entire demand should be said to be in a good direction.

For the real estate industry chain, especially the building materials, the direction is clear in the future, but the rhythm is not clear.如果我们认为地产产业链的逻辑靠得住,选择板块的过程中,建材应该是这几个地产产业链里基本面最扎实的板块,一是它本身还有基建的预期在,包括防水、管材、水泥In fact, it is an infrastructure -related beneficiary sector. This year is an infrastructure year. In particular, when the downward speed of real estate is so fast. If you want to stabilize the economy, you must stabilize employment, and there is no doubt that he must build base construction. In the first quarter of this year, the special debt was issued. Last year, there were about 1.5 trillion special debt funds transferred. At present, there are nearly 2 trillion special debt funds issued. See, infrastructure and real estate are the role of mutual promotion. There is a large source of funds in its own infrastructure. The main source of self -raised funds is the income of government funds. Positive promotion role.

In short, putting aside this point of view of infrastructure, building materials are also beneficial sectors. The building materials section should be a dual benefit sector in infrastructure and real estate in the market. When the real estate downward pressure is relatively large, the infrastructure supports its performance. The operating performance is mainly supported by infrastructure. Looking back, with the repair of the entire real estate, the operating performance of the building materials sector is also expected to be repaired.

04

Interactive question and answer

Question 1: What is the relationship between building materials and real estate sectors?

Huang Yue: I started to introduce to you. Cement and waterproof were all started using real estate developers after landing the land. Home building materials and glass are often the post -building materials. After completion, glass is installed, waterproof in the house, pipes, gypsum boards, coatings, and hardware.

In addition, from the downstream customer group, more than 70%are real estate -related industries, so the building materials sector belongs to the relevant sector on the real estate industry chain, but it belongs to the most solid foundation in the real estate industry chain related section. Cement and glass are relatively highly related to real estate and real estate. The competition pattern of highly related real estate and high industrial concentration is a relatively large advantage over other sections of the real estate industry chain. In addition to the large β attributes of real estate, home improvement and building materials also have a large logic that has continuously improved the market share in their respective tracks. Instead, the industry can further usher in the improvement of industrial concentration in the general trend. The operating performance may be further improved against the downward cycle of real estate. This should be the most solid plate in the real estate industry chain.

Question 2: The coverage of building materials is relatively large, is it a large impact of real estate, or is the infrastructure impact of non -housing?

Huang Yue: There is no doubt that this is to see the changes in real estate and infrastructure. At present, it is obviously that the company with a relatively high proportion of non -housing business will be better in the case of relatively high stress of real estate. High -degree company. However, the company that is relatively related to the real estate is also relatively elastic. Once the real estate discovers the inflection point, the upward elasticity is relatively large.

This two states, you can think that some trend in the building materials follows the infrastructure, and some trend is to follow the real estate, but these two industrial chains are the industrial chain that we are very optimistic this year. One -button packaging infrastructure and real estate, the two "steady growth" heavy sectors of the "steady growth" section. Question 3: Promote the favorable favorable building materials in the county's urbanization?

Huang Yue: This is undoubtedly good. I first mentioned that many building materials will be used in the urbanization of the county, including improving municipal transportation facilities and improving the network of business circulation. and many more. There are also the upgrading of county municipal facilities and the transformation of old communities. It may also involve some home -improvement and building materials, including waterproof materials, pipes, coatings, etc.

There are also supply to strengthen public services, such as improving the medical and health system, improving the development of pension care services, cultural and sports facilities, and venue construction may involve cement, waterproof, gypsum board, coatings, etc. It is more marginal contribution. In terms of total, this proportion is not very large. Of course, there are some companies, such as the proportion of waterproof companies in the county, but objectively speaking, it is a discussion. Let some companies have α attributes. To say big β, I think more about real estate.

Question 4: How to promote green and low -carbon development in the building materials industry?

Huang Yue: Objectively speaking, the building material sector itself is also a large plate of carbon peaks and carbon neutralization. Cement accounted for more than 10%of the carbon emissions in my country, and my impression was about 12%and 13%. However, the "double carbon" is nothing more than shrinking production capacity, and the logic of reducing production capacity is no longer a new thing for the building materials sector. Since 2018, the trend of cement has gone through three years. A lot, the main logic is that the concentration is further improved, the industry competition pattern is further optimized, and the large background is basically prohibited from adding new production capacity. Go up.

In the past few years, the performance of cement stocks is very similar to the performance of coal stocks in recent years. Until now, it should be said that it has entered a balanced period. In the future, carbon neutralization and carbon peaks have to be further compressed. I personally think that it will not have much effect, so everyone will see that in 2021, the carbon speculation, the carbon neutral and the time and the time of the building materials sector basically does not fluctuate. Basically It is no longer a new thing.

But in the future, it is worth looking forward to that if carbon neutral and carbon peaks need to further compress production capacity, this piece must be beneficial, but at present, I think it will not be seen at least this year.

Question 5: Mentioned the downward pressure on the economy, stabilize the market entity, boost the demand for the construction industry, and then support the fluctuation of the price of building materials. What is the investment trend of building materials in the future?

Huang Yue: I have mentioned it to you just now that the direction is good. The main logic of good is the infrastructure. This year, the probability of maintaining a high growth. The greater logic is that the real estate is likely to be at the end of the second quarter or at the end of the second quarter or at the end of the second quarter or at the end of the second quarter. In the early third quarter, the inflection point was ushered in, which caused the turning point of the performance of building materials.

However, the specific time cannot be determined, because many policies have not been going on. In addition, when the residents are willing to buy a house after the policy goes down, when the entire real estate business is willing to get the land to get up, it cannot be predicted objectively.但应该说这个板块现在方向明确,未来向好,但节奏不知道,不知道什么时候能走出来,所以我个人觉得这个板块的布局思路更多是逢低配置,因为你知道方向向好,但There is risks to chase high. Maybe the market will go down before seeing the inflection point. This is probably the case.

Question 6: Whether the price of raw material prices will lead to a decline in profitability.

Huang Yue: This has basically reflected in the stock price. The quarterly report and last year's annual report have reflected the pressure of rising raw material prices to the profitability of the entire operating performance. The cost is constantly moving up. But looking back at the whole cost end pressure is alleviating. We look at the cost end. It should be said that the future will gradually get better and better, rather than getting worse. After all, we see that the entire PPI is going down.

Question 7: How do I invest in infrastructure -related funds? How does the building materials fund layout?

Huang Yue: Objectively speaking, there are more meta industries in building materials, some are related to infrastructure, and some have nothing to do with infrastructure. Therefore fund. Building materials ETF one -click packing cement glass, consumer building materials, waterproof, hardware, coatings, pipes, gypsum boards and other subdivided industries, it can also greatly reduce the risk of thunder step -step. After all, there are dozens of ingredients stocks in ETFs The proportion of individual stocks in it is relatively controlled. In case a certain stock suddenly occurs in financial problems, it can greatly reduce the risk of individual stocks.

The above views are for reference only, and do not constitute investment suggestions or commitments. If you need to buy related fund products, please pay attention to investors' appropriate management regulations, do a good job of risk assessment in advance, and purchase fund products that match it according to your own risk tolerance. The fund has risks, and investment needs to be cautious.