Author: Taylor, Editor: Xiaoshimei
On January 4, the building materials sector saw impressive gains, with Mona Lisa and Diou Home hitting their daily limit , Senying Window Industry , Beixin Building Materials , Keshun Shares , Oriental Yuhong , Holley Shares, Jianlang Hardware, Hainan Ruize , etc. are all rising sharply.
Building materials, an industry that does not sound "sexy", has actually produced many big bull stocks.
Oriental Yuhong has increased by more than 4 times, Three Trees html has increased by 57.5 times, and Jianlang Hardware has increased by 15 times...
Waterproof materials , architectural coatings, and hardware do not sound as exciting as chips, new energy vehicles, and the Internet, but their growth potential is not weak.
At the same time, the liquidation of small and medium-sized enterprises in the building materials industry is accelerating, the concentration of the building materials industry is increasing, and leading companies have a good opportunity to seize the market.
In addition, based on the technology accumulation of building materials, leading companies have gradually expanded into new application scenarios, photovoltaics , automobiles, consumer electronics , cosmetics, etc. have broad downstream space.
You must know that new building materials have been included in the ten key areas of " Made in China 2025", and five specialized and new "little giant" companies have emerged in the industry.
With the support of increasing iterations of high and new technologies, the building materials industry is glowing with new vitality.
According to statistics, there are 5 listed companies in the building materials industry that specialize in new "little giants", namely Karen shares , Kuncai Technology, Hongqiang shares, Shanghai Tianyang and Saite New Materials.
In terms of industries, waterproof materials have entered a period of industry reshuffle, small companies are clearing out, and leading companies with technology and scale advantages continue to expand their territory, and industry concentration continues to increase.
From 2018 to the third quarter of 2021, the gross profit margin of Karen Shares was higher than that of the larger Dongfang Yuhong and Keshun Shares. The main reason is that Karen is betting on the polymer waterproof membrane with higher technical added value, which has stronger profitability.
Kuncai Technology is the world's third largest supplier of pearlescent pigments, with a wide range of downstream application scenarios. brokerage predicts that the global CAGR of pearlescent pigments is expected to reach 18.73% in the next five years, and the global scale will increase to 44.6 billion yuan in 2025. The proportion of higher-end cosmetic-grade and automotive-grade pearlescent pigments is expected to increase to about 30%.
Hongqiang Co., Ltd. is one of the top three companies in concrete admixtures and a core supplier in the construction of Xiongan New Area. At present, 6 of the top 10 ready-mixed concrete industries in the country choose Hongqiang's products.
A new "little giant" company specializing in the field of plastic bonding materials has emerged - Shanghai Tianyang. Its products cover photovoltaic materials, home decoration and building materials, electronic materials , new energy vehicle materials, and hot melt environmentally friendly bonding materials.
Shanghai Tianyang has adopted the development strategy of "one body and two wings" to expand the existing hot melt adhesive business advantages while accelerating the pace of expansion in new areas such as reactive adhesives and hot melt wall coverings.
Saite New Materials is the absolute leader in the vacuum insulation panel industry, with a market share of more than 30%, which is more than three times that of the second place Panasonic . Listed on the Science and Technology Innovation Board in 2020, the company's business is very focused. insulation panels revenue accounts for more than 96%. The downstream is mainly used in the fields of thermal insulation (refrigerators, freezers) and cold chain logistics (medical and food incubators, vending machines, etc.).
The above five companies are all making new developments based on their own technical characteristics. These layouts are expected to open up huge room for growth.
Karen Co., Ltd.’s strategy is to focus on polymer waterproofing membranes. This product accounted for 74.67% of revenue in the first half of 2021, with a gross profit margin of 38.85%, which is much higher than Oriental Yuhong’s 33.06% of similar products and Keshun Co., Ltd.’s 31.51%.
Moreover, Karen is still expanding production aggressively, with six major production bases being put into operation one after another. Its production and sales in 2020 increased by 74.94% and 78.28% year-on-year. As high-end products are gradually expanded and launched, its high gross profit margin advantage is expected to continue.
Waterproof materials are a typical post-real estate cycle industry, which is greatly affected by real estate regulation, and the capital market is also changing.
Therefore, peer companies are looking to expand new application scenarios. Karen Co., Ltd. has applied its polymer waterproof materials to distributed photovoltaic roofs. The company plans to jointly develop a "full life cycle photovoltaic roof" (CSPV) system with Liansheng New Energy to effectively meet the protection needs of photovoltaic power generation systems for more than 25 years.
From the post-real estate industry to the photovoltaic industry, the space for imagination is immediately opened up.
Pearlescent pigments belong to the chemical material subdivision industry. Through technological innovation, Kuncai Technology has moved towards a broader inorganic pigment market, and the growth ceiling has directly expanded from tens of billions to hundreds of billions.
The biggest boost behind this is the hydrochloric acid extraction method developed by the company. Kuncai Technology has thus become the first company in the world to use the extraction method to achieve large-scale production.
Currently, Kuncai Technology is running to expand production. In 2018, the third-generation extraction technology was officially put into mass production. The 100,000-ton cosmetic-grade and automotive-grade titanium dioxide project has been put into production at the end of 2020; the annual output of 500,000 tons of titanium dioxide and 400,000 tons of ferric oxide is planned to be completed this year. This production capacity has doubled from the original basis.
is in the concrete additive industry. Hongqiang shares are greatly affected by the real estate and infrastructure cycles. 's stock price fluctuates strongly during the cycle. The highlight of Hongqiang Co., Ltd. is the third-generation high-performance water-reducing agent. Its growth rate is significantly higher than that of cement and concrete, and it has independent growth logic.
According to predictions, the market space for admixtures will reach 118 billion yuan in 2025, of which water reducing agents are expected to double, with the market size rising to 84 billion yuan.
In recent years, the market concentration of admixtures in my country has increased. Due to the improvement of environmental protection standards, small companies have continued to withdraw, and the number of manufacturers has dropped sharply from 5,000 to 6,000 to more than 1,000. The market share of the top ten companies has further increased to about 30%. With its technological and scale advantages, Hongqiang's dominant position is expected to be further enhanced.
In addition, Red Wall Co., Ltd. has joined hands with China Sea Shell to enter the upstream fine chemicals industry, investing 540 million to build downstream fine chemical projects with an annual output of 280,000 tons of ethylene oxide and propylene oxide .
Red Wall Co., Ltd. chose to extend from admixtures to the upstream industry chain . First, it formed upstream and downstream integration, which was conducive to reducing costs; it also built new growth points and opened up new growth space.
Riding on the trend of photovoltaics, new energy vehicles, and consumer electronics, Shanghai Tianyang’s performance has exploded since 2020.
In the first three quarters of 2021, its photovoltaic EVA packaging film increased by 56% to 194 million, becoming the company's second largest business. Its customers include CHINT , Oriental Risheng , etc.
As the cost of photovoltaic electricity continues to decline, the value of photovoltaic protection devices is increasing day by day. Photovoltaic power generation needs to withstand wind and sun all year round, and photovoltaic film needs to ensure the 25-year service life of solar modules. It is an indispensable core auxiliary material. Its demand is not affected by the technical line of photovoltaic cells or even the price of silicon materials and components.
The four major players in the EVA film market are Foster, Swick, Haiyou New Materials and Savu Technology, with share rates of 55%, 13.54%, 10.36% and 4.37%.
As a pursuer, there is still a certain gap between Shanghai Tianyang and the industry leader. However, after expanding production and raising prices, profitability is expected to continue to improve.
electronic glue is also a big blue ocean market, with broad room for domestic substitution. Shanghai Tianyang has successively acquired 86.96% of Xinyou's shares and 65% of Taisheng Technology's shares, and has successfully entered the supply chain of , Huawei, , OFILM, Sunny Optical and other companies.
Due to the advantages of lightweight and sound insulation, high-performance automotive adhesives are widely used. Shanghai Tianyang's products have been recognized by CATL, Guoxuan Hi-Tech, FAW and other companies. The automotive adhesive business will make the market shine in the future.
Different from Shanghai Tianyang’s multi-business driven model, Saite’s new material business focuses on vacuum insulation panels.In the field of freezers and cold chains, Saite has obvious advantages. Its market share is more than 30%, which is much higher than Panasonic Vacuum Energy Saving's 9.3% and Sanyu Dio's 0.61%.
has established long-term cooperative relationships with Haier , Whirlpool , LG and other companies, and its market share in eight leading refrigerator companies is as high as 62.30%.
Cold chain is a blue ocean market in China. In addition to food transportation, vaccines and other medical cold chain transportation brought about by the epidemic will be a huge market. As the absolute leader in the industry, Seth will fully enjoy the industry growth dividends .
Competition in the building materials industry is changing from mid- to low-end to high-end. High-end products will further increase their profitability, while the expansion of downstream application scenarios such as photovoltaics, automobiles, and consumer electronics has opened up new growth space for these companies.
Disclaimer
This article involves content about listed companies and is the author’s personal analysis and judgment based on the information publicly disclosed by listed companies in accordance with their legal obligations (including but not limited to temporary announcements, periodic reports and official interactive platforms, etc.); the information or opinions in the article do not constitute any investment or other business advice, and Market Value Observer does not assume any responsibility for any actions resulting from the adoption of this article.
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