We are pleased to announce that Mr. Han Yu has officially joined the Research Institute of China Securities Co., Ltd. (CSC), assuming the position of Co-Head Analyst for Building Materials and New Materials. Mr. Han holds an interdisciplinary background with an undergraduate degree in Materials Engineering and a postgraduate degree in Economics and Finance. With six years of research experience in building materials and chemicals, he has previously provided in-depth coverage of the building materials and new materials sectors, identifying several structural growth opportunities in areas such as mortar powder, carbon-ceramic brake discs, upstream new materials for AI computing power, and civil explosives & mining services.
Moving forward, Mr. Han Yu will lead his team to build consensus and focus on key priorities. Leveraging professional expertise, the team aims to challenge the market's traditional perception of the building materials industry, dismantle the entrenched bias that views it as a "traditional sunset industry," and deeply excavate growth opportunities emerging from the sector's transformation. The goal is to identify more high-growth stocks, create value for investors, provide references for industrial development, and ultimately promote a more reasonable valuation and broader attention for the building materials and new materials industry in the capital markets.
Mr. Han Yu's Personal Resume Introduction Mr. Han Yu is the Co-Head Analyst for Building Materials and New Materials at CSC, holding a Master's degree in Industrial Economics and a Bachelor's degree in Materials Engineering from Sichuan University, giving him a composite knowledge base. With six years of research experience in building materials and chemicals, he previously served as Chief Analyst for Building Materials and New Materials at Founder Securities and was a core member of the building materials and chemicals team at Zhongtai Securities. He also covered the building materials and chemicals sectors at a mid-sized insurance asset management company, providing him with perspectives from both the sell-side and buy-side. As a core team member, he was honored with the 4th place in the New Fortune Best Analysts ranking for the Building Materials industry (2022, 2023), 3rd place overall in the Crystal Ball Award for Sell-side Analysts (2023), and 2nd place in the public fund ranking (2023).
The following is a sharing from Mr. Han Yu: Being a Competent 'Co-Driver' I am very pleased to join the CSC platform at the beginning of 2026; this is also where my sell-side research career began. In the future, I will utilize solid research, close tracking, forward-looking judgments, and actionable, practical investment advice to better serve investors, listed companies, and industry leaders.
My undergraduate major was Materials Engineering, and I shifted to Economics and Finance during my postgraduate studies. After graduation, I have worked on both the buy-side and sell-side. When discussing the differences between these roles, I often draw an analogy to the world of racing: a sell-side researcher is more like the co-driver in a rally car, whose core task is to continuously expand the map within the field of vision and clearly indicate the route to the driver. The buy-side, however, is more like the driver directly participating in the race, whose core task is to judge and make decisions during the journey, such as whether to turn or adjust speed; practical, operational work is the core competency of the buy-side. From this perspective, I believe the sell-side leans more towards being a guide, while the buy-side focuses on valuation and investment decisions, selecting the appropriate investment portfolio after balancing risk and return.
My very first sell-side industry research internship was at CSC. The first task I received was to move two barrels of oil from one office location to another. For me, still in the "ivory tower" at the time, this seemingly simple manual task led to an intuitive epiphany about company research: combining my previous training in science and engineering, I deeply realized that sell-side research must be rooted in detailed study of a company's products, competitive strategy, its specific market segment, and even changes in management. Only by enabling research to have a "productized" capability can one truly fulfill the core responsibility of presenting a clear, objective, and panoramic "map," helping the buy-side balance risk and investment return on this "map."
The most fulfilling aspect of my career so far was identifying the operational difficulties of a leading waterproofing enterprise during a prolonged downturn in the traditional building materials market, and uncovering its second growth curve centered on mortar powder as a new product category. We were the first team in the market to research the mortar powder sector as a structural growth area, and we were the first to point out the company's new growth logic to the market. The related research results not only served the secondary market but also gained recognition from leading companies and executives in the industry, achieving a positive cycle of applying knowledge practically. In the new materials space, we identified the growth opportunity of carbon-ceramic brake discs from zero to one. Beyond the cyclical growth opportunities in photovoltaic thermal fields, we were among the first to highlight the potential of this emerging application direction for carbon-ceramic brakes. Subsequently, domestic new-energy vehicle manufacturers began adopting this high-end material in their mid-to-high-end product lines, validating our forward-looking judgment.
These cases have given me a profound understanding that when facing cyclical fluctuations, leading companies, which bear the livelihoods of tens of thousands of families, will find ways to reverse the situation or explore paths for growth and a return to expansion under new circumstances. Therefore, it's not just secondary market researchers who are diligently searching for alpha opportunities; the companies themselves are often striving even harder, because behind these enterprises are countless households.
Future Plans in the New Role Regarding team building, I will lead the team to build consensus and focus on key priorities. Supported by professional capability, we will strive to ensure our research ranking matches the company's business ranking and the Research Department's business standing, aiming to establish a more professional and influential image in the field of building materials and new materials research.
Recently, the CSC Research Institute launched the "Zhiyan Multi-Asset Allocation+" platform, providing investors with a more practical investment system supported by a powerful data middle office. Deeply processing information, transforming it into actionable investment decisions, and continuously optimizing and iterating is the shared mission that both buy-side and sell-side parties are working towards.
Processing information is akin to the familiar parable of "the blind men and the elephant." When facing large enterprises with tens of thousands of employees, performing a precise valuation and fully presenting the complete picture of their development strategy cannot be achieved overnight; we can only approach it by gathering information from multiple dimensions. Although it is difficult to vividly present the entire "colossus," we can unearth key information points, connect and integrate them, enabling the market to clearly understand the company's true face and operational status. This is the core focus of a sell-side analyst. Specifically, information processing should follow a "three-step" strategy: The first step is information screening, accurately judging the core value of information versus irrelevant noise, and filtering out content that has substantive meaning for research and decision-making. The second step is information integration, connecting fragmented information points to form a comprehensive picture, building a systematic understanding of the company's strategy and industry trends. The third step is productized presentation, combining research objectives and market needs to transform the integrated understanding into standardized, professional research outputs. These three steps are progressive and together constitute the core responsibilities of a sell-side analyst, as well as the key to creating value for the market.
Methodology for Building Materials Industry Research After peaking in 2021, the building materials industry has experienced five consecutive years of decline. In this context, how to unearth investment opportunities, how to maintain the original intention of research, and thereby continue to deepen expertise in this industry and contribute value, is a challenge everyone must face. My personal approach is to constantly update my understanding of companies. Although most companies in the building materials industry are still in relatively traditional fields, changes are occurring even within these traditional areas—for instance, industrial upgrade opportunities defined by new demand-side scenarios, or景气 recoveries driven by supply-side contraction. Simultaneously, due to lower market attention, traditional segments can also create expectation gaps in the secondary market, potentially allowing for the discovery of absolute return opportunities in "less crowded places."
During my more than six years in the industry, I have witnessed significant transformation in the building materials sector. From the era of "materials for construction" between 2019 and 2021, to the industry's ongoing shift towards "materials for structuring" from 2021 to the present, the industry's boundaries are continuously expanding. Our research scope now extends into the realm of "materials for structuring"—that is, materials that provide structure for spaces and various downstream承载物. For example, amid the global wave of AI computing power upgrades, the domestic fiberglass industrial chain, serving as a structural material for PCBs, has significantly broadened its application scenarios in the AI and computing power fields, with future market potential far exceeding that of the traditional construction materials sector. These industry changes have made me increasingly aware that research视野 must closely follow industry evolution to accurately capture value.
In terms of research direction and scope, we have delineated several clear tracks. On one hand, there are traditional domestic-demand-oriented sectors (where the trend of出海 is also increasing in recent years), including consumer building materials, cement and glass for construction, etc. On the other hand, there are new structural materials, encompassing PCB materials like fiberglass and resins, adsorption and separation materials, electronic chemicals, and more.
2026 Investment Outlook for Building Materials & New Materials Industry: Embracing the Start of a New Cycle, Focusing on Materials for Structuring The proportion of real estate in building materials demand has diminished, and the industry stands at the starting point of a new cycle. In 2025, the proportion of demand from new real estate construction in cement's downstream demand is estimated to have fallen to 18.9%, while the proportion of demand from construction in the overall demand for flat glass is estimated to have decreased to 41.3%. China's residential decoration market has also transitioned to an era dominated by existing housing stock, making inventory renewal the core focus for demand in consumer building materials.
Looking at international experience, 2026-2027 may be a critical period for the gradual bottoming out of China's real estate market. We are optimistic that the new construction starts segment of real estate will bottom out first, signaling that a new cycle has arrived.
Regarding new materials, we are primarily optimistic about investment opportunities arising from the iterative upgrades of specialty electronic glass fabric and resin materials upstream of CCL (Copper Clad Laminate), as well as opportunities brought by the acceleration of import substitution in the electronic chemicals track.
Comments