The stock price has been falling for 4 years and has been sideways for a year and a half, dropping from 239 to 23, yet social security pension funds have held on stubbornly for seven years without leaving.

Jianlang Hardware’s stock price has fallen from its peak of 239 yuan to around 19 yuan, after fluctuating sideways for more than a year. It now hovers around 23 yuan. Such a trend makes people nervous, especially those investors who bought at high prices—they probably sigh at night, worried about their losses. The real estate industry has been rollercoaster-like in recent years, with ups and downs. Many people avoid building material supporting companies, but a few institutions stubbornly hold on, refusing to sell.

The Social Security Fund Portfolio 413 has been holding this stock since 2019, enduring seven years of ups and downs. The Pension Insurance Fund 16032 entered a bit later but has been holding for over three years since 2022. Latest data shows that by the end of Q3 2025, they remain among the top ten circulating shareholders, holding about 4.92 million shares for the social security fund and about 3.57 million shares for the pension fund, with no signs of significant reduction. Occasionally, northbound funds add some positions, indicating foreign investors haven’t completely given up.

This company mainly produces mid-to-high-end building hardware systems and accessories. Building hardware accounts for 99% of revenue, with a gross profit margin around 30% year after year, making it a high-margin player in the building materials sector. In China’s A-share market, few integrated suppliers offer such a complete product range. Brands include Jianlang, Jianyijia, Haibeisi, Xin’an Dong, GTI Qintai, which are well-known in the industry. It also has some exposure to photovoltaic and cross-strait concepts, adding a bit of extra imagination space.

Financially, revenue and profits have indeed declined along with the real estate downturn in recent years. By 2025, full-year revenue is expected to drop about 15%, with net losses between 70 million and 95 million yuan, and even larger losses after deducting non-recurring items. However, operating cash flow has remained stable, showing positive net inflow, indicating the company’s self-sustaining ability is intact, and its cash reserves haven’t dried up. Accounts receivable management has also been strengthened to avoid bad debt holes.

Why don’t these long-term funds sell? Partly because they are trapped—pension funds entered in 2022 when the stock was still around 80-90 yuan; now at over 20 yuan, they are sitting on significant unrealized losses. Another reason is their confidence in the company’s solid foundation. Its industry position remains strong, product competitiveness intact, and cash cow still operating. During the real estate downturn, a performance rebound is difficult, but steady cash flow means the company’s lifeline isn’t cut. Many say, “Endure it, and you’ll succeed.” It sounds cliché, but it’s quite practical.

Think back to the years when real estate was booming, and hardware accessories’ prices soared along with the market, making everyone rich. Now the market has cooled, demand is sluggish, project orders shrink, and although overseas business grew by 30%, its small proportion can’t change the overall situation. Policy-wise, 2026 will continue to stabilize the housing market, control new supply and reduce inventory, promote the transformation of existing homes into affordable housing, and push for quality housing construction. Building material companies are struggling, but leading players have a better chance of survival.

At current low stock prices, with institutions not selling and cash flow stable, what signals are hidden here? Is it a trap or an opportunity? Everyone has their own answer. The market always tests patience. Those institutions holding for seven years have probably wavered many times. But they chose to stay, perhaps because they believe this company will eventually turn around. Isn’t life like that? Many things, if endured long enough, will eventually turn out okay.