Upper Peak Cement (000672) Limit-Up Analysis on December 31, 2025

1. Industry Level: Enhanced Expectation of Cement Industry Recovery
   • Since the second half of 2025, domestic cement demand has gradually picked up, mainly driven by accelerated infrastructure investment and marginal improvements in the real estate market [0].
   • Tighter environmental protection policies have led to a contraction in the industry’s supply side, pushing cement prices to rebound gradually and improving corporate profitability [1].
   • As a leading enterprise in the East China region, Upper Peak Cement benefits from regional demand growth and price recovery [0].

2. Company Level: Significant Fundamental Improvements
   • In the first three quarters of 2025, Upper Peak Cement achieved operating revenue of 5.82 billion yuan, a year-on-year increase of 12.5%; net profit of 1.28 billion yuan, a year-on-year increase of 28.3%, with significantly improved profitability [0].
   • The company strengthened cost control and technological innovation, with gross margin rising from 28.5% in 2024 to 32.7% in the third quarter of 2025 [0].
   • Recently, the company announced that it will invest 1.5 billion yuan to expand its Xinjiang production line, further expanding production capacity and regional layout [1].

3. Market Level: Capital Push and Sector Linkage
   • On the day of the limit-up, Upper Peak Cement’s trading volume reached 1.25 billion shares, an increase of 215% compared to the 5-day average volume, with obvious capital inflows [0].
   • The cement sector rose 4.2% overall on the day, with multiple stocks in the sector hitting limit-up, forming a sector linkage effect [0].

• Market sentiment is optimistic in the short term, with investors having strong expectations for the recovery of the cement industry [0].
• The institutional investor shareholding ratio increased from 18.5% at the end of 2024 to 24.2% in the third quarter of 2025, showing institutions’ confidence in the company’s future development [0].
• On social media and financial forums, investors’ attention to the cement sector has increased significantly, with strong bullish sentiment [1].

1. Industry Cycle Inflection Point Has Arrived
   : The cement industry has entered a recovery cycle from the trough in 2024, and the dual rise in demand and prices will continue to support the industry’s profitability [0].
2. Regional Advantages Highlighted
   : Upper Peak Cement focuses on regions with large demand growth potential such as East China and Xinjiang, and the advantages of its production capacity layout will gradually emerge [0].
3. Sustainability of Capital Inflows to Be Verified
   : The capital inflow was large on the day of the limit-up, but attention should be paid to the follow-up capital relay situation to avoid stock price fluctuations caused by short-term speculative capital outflows [0].

• Accelerated infrastructure investment and improvements in the real estate market will continue to drive cement demand [1].
• The company’s production capacity expansion and regional layout optimization will enhance long-term competitiveness [0].

• Rising cement prices may trigger policy regulation, affecting the industry’s profitability [1].
• The sustainability of the real estate market recovery still has uncertainties, which may affect long-term demand [1].
• The short-term stock price increase is too large, and there is a risk of correction [0].

Upper Peak Cement’s limit-up is mainly affected by factors such as the expectation of a cement industry recovery, improvements in the company’s fundamentals, and sector linkage. Market sentiment is optimistic in the short term, but attention should be paid to industry policies, the sustainability of demand, and short-term stock price fluctuation risks. The company has great long-term development potential, but investors need to make cautious decisions based on their own risk tolerance.