Will the building materials industry improve next year?

In the second quarter of 2019, the revenue growth rate and net profit growth rate of the building materials industry have declined, but profitability indicators such as ROE are running at a high level. In the second quarter of 2019, the building materials industry achieved revenue of 120.1 billion yuan, a year-on-year increase of 25%, and a net profit of 19.4 billion yuan, a year-on-year increase of 9%; The cash-to-cash ratio in the second quarter of 2019 increased slightly compared with the second quarter of 2018, and the net operating cash flow net profit was 129%, a large year-on-year improvement (in the second quarter of 2018, indicating that the industry's cash flow position is good; The profitability of the industry remained high, with gross profit margin in the second quarter of '19, ROE of , YOY+, and a slight decline in profitability, but maintained a relatively high level.

In general, the sales volume of the building materials industry may decline, but it will increase in the consumption of single products, that is, the consumption upgrading and transformation that the country has been advocating.

For example, taking doors and windows as an example, the overall sales of doors and windows may decline, but the sales volume in the subdivision of high-end customized doors and windows has increased.

In the past, many of the doors and windows of the real estate were used directly by the developer, but now the needs of many consumers have changed, they want more than just a window, they need to be silent, safe, watertight, compressive, beautiful and so on!

In the future, the development of the industry will be based on market changes, that is, around the following points.

1) Environmental protection building materials have become the mainstream.

Environmentally-friendly products are still favored by the market. In the first half of 2018, environmentally friendly products accounted for more than half of the total sales, and consumers paid special attention to the environmental performance of their homes.

2) Emerging consumption has become dominant.

For traditional brands, it is necessary to pay close attention to the brand concerns of these emerging consumers and analyze their consumption behavior, so as to be able to get their attention and recognition. This requires traditional home building materials enterprises to re-examine the existing brand positioning, brand communication, and brand personality model.

3) Exquisite decoration has become a selling point.

At present, most of the new houses in first-, second- and third-tier cities are sold as well-decorated and high-quality properties, and this trend has huge room for development in fourth- and fifth-tier cities, county seats, and major towns. In the future, the competition in the building materials industry will be more intense, and the ground promotion of building materials ground experience stores will be more advantageous.

Since the beginning of this year, the economic operation of the building materials industry has remained stable on the whole, showing the characteristics of stable and changing operation. On the one hand, this is due to the fact that in recent years, the building materials industry has focused on promoting supply-side structural reform, and has committed to industrial structure adjustment and control of production capacity release under the joint action of comprehensive means such as environmental protection, quality, and off-peak production, and has strived to maintain the dynamic balance of market supply and demand. On the other hand, structural contradictions such as serious overcapacity have not been effectively alleviated, the problem of declining market demand and insufficient endogenous power of enterprises still exists, and the downward pressure on the industry continues to accumulate.

According to the statistics of the "Market Prospect and Investment Strategic Planning Analysis Report of the Home Furnishing Building Materials Industry" released by the Prospective Industry Research Institute, from January to August 2018, the building materials industry above designated size achieved a main business income of one trillion yuan and a total profit of 246.3 billion yuan. Among them, the growth of the main business income of the cement and flat glass industries slowed down, and the profit growth narrowed. The main business income of concrete and cement products, glass fiber and composite materials, sanitary ceramics, waterproof materials, lightweight building materials, thermal insulation materials, lime gypsum, technical glass, non-metallic mineral products and other industries remained stable.

However, compared with the actual sales revenue of the previous year, most industries declined.

Looking at the specific industry of building materials, if it is a rigid demand, the impact is relatively small.

This still has to be said according to the different places, but it is certain that the impact of the epidemic has not ended until now, and the postponement of consumption in the building materials industry is also a fact that exists now, but for the early layout, it is indeed an opportunity now, after all, the current market will eliminate some dealers.

With the rapid development of the real estate industry and the decoration industry, the function of decoration materials has put forward higher and higher requirements, and at the same time promoted the technological innovation and technological development of building decoration materials enterprises with the development of science and technology. Nanotechnology has been widely used in the field of building materials. The application of new technology not only improves the performance of the original material, but also gives the original material a new function, that is, the high performance and high functionality of the material.

The progress of the construction industry not only requires the quality and function of buildings to be perfect, but also requires them to be beautiful and harmless to human health. This requires the development of multi-functional and efficient new building materials and products, only in this way can we adapt to the requirements of social progress, the use of new building materials and products, can significantly improve the function of the building, increase the usable area of the building, improve the seismic capacity, facilitate mechanized construction and improve construction efficiency, and can reduce the construction cost under the same circumstances.

According to industry data, the practice of Tianjin, Chengdu and other cities has proved that under the same conditions, the use of new building materials and products can increase the effective use area by nearly 10%, reduce the weight of the building by more than 40%, and effectively improve the seismic capacity. According to the current annual completion of 100 million square meters of urban residential 100 million square meters of new materials, the effective use area can be increased by about 20 million square meters per year, and the comprehensive cost can be reduced by about 4%-7%.In addition, the development of new building materials for environmental protection and comprehensive utilization of resources also has a significant effect.

Data extracted from industry research).

It is understood that the new material not only has good decoration and usability, but also harmless to the human body, pollution-free, and conducive to human health, therefore, environmental protection and health decorative materials have become a hot spot in the development of building materials. Environmentally friendly and healthy decorative material products have become the leading consumer products in the 21st century.

1.The total demand will still grow, but because the contradiction of excess processing capacity of general building materials has not been resolved, the situation of oversupply will not change in the short term. 2.

Driven by the demand for infrastructure and urbanization construction, the number of high-quality building materials and environmentally friendly building materials will increase steadily. 3.The consumption of high-tech building materials and fashion building materials will be in line with the international trend.

The consumption of different grades of building materials is becoming more diversified. 4.The import of new decoration and decoration building materials will increase, and the export of building materials with resource and cost advantages will also increase.

5.The sales radius of cement, glass and wall materials in traditional building materials will be reduced, and the sales radius of decoration materials in new building materials will be expanded. 6.

The total level of building materials will rise slightly with the increase in the intensity of poisoning and eliminating backward production capacity, but the competition in traditional building materials is still fierce. 7.Brand effect plays a role in market competition, serialization, supporting, standardized after-sales service has become an important means to occupy the market, and the professional market of building materials will shift from booth leasing to unified and standardized supermarket operation.

This is what I know, and I hope it solves your doubts.