Chengdu completely bans low-end waterproofing membranes for national waterproofing projects or is it expected to accelerate?

Risks and opportunities coexist, innovation is king

In fact, banning hot-melt SBS waterproofing membranes has little impact on many large companies with forward-looking strategic vision
.
However, some waterproofing companies that use hot-melt membranes as their leading products will inevitably be impacted
.

In business operations, industry policy risks always exist
.
The state will continue to issue a series of policies and planning documents to regulate and guide the sound and healthy development of the waterproof building materials industry
.
In recent years, with the increasing requirements of the state and society for environmental protection, the state has promulgated and adopted higher environmental protection standards, and related energy-saving and environmental protection industry restraint policies.
risk
.
To deal with this risk, enterprises must have a forward-looking vision and a strong ability of independent innovation
.

For many large brand enterprises, various types of products are complete, hot-melt SBS waterproofing membranes are prohibited, companies also have pre-laid waterproofing membranes, solvent-based architectural waterproofing coatings are prohibited, and companies also have water-based polyurethane coatings.
.
.
This It is the leading demonstration role brought by the forward-looking layout and technological innovation of large enterprises
.

The market share of waterproof industry is concentrated to leading enterprises

The Chengdu New Deal encourages the use of polymer materials.
Compared with asphalt-based waterproof materials, polymer materials are more in the hands of leading companies such as Yuhong, and are more beneficial to industry leaders
.

The reporter learned that as of the end of 2020, the waterproof business scale of the top four waterproof material enterprises in China is shown in the table below.
Oriental Yuhong is currently the largest waterproof material enterprise in China, and the sales scale in 2020 will reach 21.
7 billion yuan, followed by Keshi.
The sales scale was 6.
24 billion yuan
.
If calculated by the revenue scale of enterprises above designated size in 2020, the market shares of Oriental Yuhong, Keshun, BNBM and Kailun will be 20%, 5.
7%, 3% and 1.
8% respectively in 2020.
Overall, in terms of market share Look, the leading position of Oriental Yuhong is relatively stable
.

From the perspective of distribution space, the major waterproofing companies are still staking their ground.
Among them, the leading Dongfang Yuhong has the most extensive production capacity in China, and its production capacity is located in North China, East China, Central China, Southwest China and South China, with national characteristics; while Beixin Building materials are next, with production capacity distributed in North China, Central China, Southwest China, and South China; Keshun Co.
, Ltd.
has a relatively small production capacity distribution breadth, but a high degree of concentration, with production capacity located in South China, East China and Central China; Kailun Co.
, Ltd.
’s production capacity is located in East China and Central China
.

Waterproof materials are mainly used in real estate and infrastructure fields
.
Relevant data shows that in recent years, the preferred rate of leading waterproof material enterprises in the real estate industry has gradually increased.
As of 2020, the preferred rates of Oriental Yuhong and Keshun have reached 36% and 20% respectively
.

In addition, polymer waterproofing materials are the development direction of waterproofing materials in the future.
As of 2019, the domestic production capacity of waterproofing membranes is only 220 million square meters
.
Among them, Karen Co.
, Ltd.
is one of the earliest companies in China to develop polymer waterproof materials.
In 2020, its market share in the field of polymer materials will be 5%
.

Affected by the policy orientation, Dongfang Yuhong and Keshun Co.
, Ltd.
have successively deployed in the field of polymer materials, and Dongfang Yuhong, with its leading advantages, has shown a trend of catching up
.
According to the expansion of production capacity, Oriental Yuhong's polymer material production capacity will reach 100 million square meters in 2023, which is close to 45% of the current industry polymer material production capacity
.

Since the reform of the supply side, the supervision of the waterproof industry has become stricter, and standardized policies have been continuously introduced
.
The market competition of waterproof materials is gradually changing from vicious competition of low price and low quality to benign competition such as new product development and quality control, and the industry is also showing a trend of accelerated concentration.
There are 723 enterprise waterproof material enterprises.
In 2020, the main business income accumulated to 108.
7 billion yuan, a year-on-year increase of 4.
6%; the total corporate profit was 7.
397 billion yuan, a year-on-year increase of 12.
1%
.

Epilogue

The Chengdu government's requirement for the environmental protection and standardized development of the waterproof industry is another step forward of the standardized policy of the national waterproof material industry in the past few years
.
The introduction of the new regulations is likely to eliminate a large number of small and medium-sized waterproof enterprises with average financial strength, weak brand effect and uneven product quality, which is conducive to accelerating the clearing of the industry
.
In addition, the leading companies have taken the initiative.
After the release of the fixed increase, Oriental Yuhong has deployed a number of waterproof bases.
Among them, Huadu and Hangzhou waterproof bases have added nearly 100 million square meters of polymer material production capacity; Keshun shares and Kailun shares also have Corresponding layout, at the same time, Chengdu, as a pioneer, is the vane of changes in the industry, which means that other provinces and cities have a tendency to introduce new standards one after another
.
Under this trend, the organizational model of Oriental Yuhong's regionally integrated companies will further lead the market and intensify changes in the market competition model, and leading companies will accelerate growth amid industry changes
.