Construction industry "golden nine silver ten" arrival cement glass by the property market impact

With the deepening of supply-side structural reforms this year and increased investment in infrastructure and real estate, the building materials industry's business climate has rebounded. In particular, this year's property market sales are good, no doubt on the upstream cement, glass industry has a significant impact. With the "Golden Nine Silver Ten" property market sales season, it is expected that the building materials sector listed companies will further benefit., glass prices by the property market business climate is obviously affected
this year, the real estate industry sales are good. In August, the China Index Research Institute released the 100-city average residential price index shows that since May last year, the housing price index has been rising for 16 consecutive months month-on-month. The general trend of house prices in first-tier cities has spread to second-, third- and fourth-tier cities, and a national housing price increase is taking shape. The national real estate market sales to the good, the building materials industry pull effect is very obvious, especially cement and glass two sub-sectors benefit the most obvious.
, china's cement production in the first half of 2016 was 1.109 billion tons, up 3.2% year-on-year, reversing a contraction in demand in 2015, driven by investment in infrastructure and real estate. According to statistics from digital cement network, the average price of cement rose from 233.58 yuan/tonne in early March to 257.92 yuan/tonne in early June, an increase of 10%. Due to the rise in cement prices in the first half of the year, the performance of cement companies in some areas improved, such as the northwest cement listed companies Tianshan shares, Yanlianshan, Ningxia building materials, Qingsong Jianhua have achieved a reduction in losses.
With the deepening of supply-side structural reforms, demand in the cement sector has picked up, driven by infrastructure and real estate investment, and prices have risen alarmingly in some areas since July," an unnamed researcher told reporters. In southern China, for example, Fujian and Shenzhen have risen by about 42% since July, while those in central China, such as Hunan and Wuhan in Hubei, have also risen by 32%." For these areas of cement prices, the researcher to Fujian region as an example, think that the region's cement price increases are mainly driven by the Yangtze River Delta and the two wide areas price increases, peripheral cement and clyc prices continue to push up, and limited production impact into the Fujian market supply is also significantly reduced, so that local enterprises follow the trend to push up prices, reflected in the secondary market, you can see Fujian cement since August, the stock price has risen more than 16%. "Overall, under the peak season effect, some regional integration results appear, superimposed enterprises have a strong sense of co-price increases, cement price increases and scope is expected to further expand in the third quarter."
the cement industry is affected by infrastructure and real estate investment, the glass industry is mainly affected by real estate and automobile consumption. Driven by the strength of the real estate industry in the first half of the year, the contradiction between supply and demand in the glass industry has eased, and the overall trend of increasing volume prices has increased. At present, the profitability of the glass industry is at a peak in the past 6 years. Data show that in the first half of the year, listed companies in the glass industry completed a total operating income of 15.348 billion yuan, up 18.87 percent YoY; realized net profit attributable to the parent company of 735 million yuan, up 516 percent YoY; gross sales margin of 22.21 percent, up 3.62 percentage points YoY, net sales margin of 5.25 percent YoY, up 2.06 percentage points YoY.
the impact of the first half of the glass price increase, but also to produce float glass-based listed companies in the first half of this year's earnings performance, attributable to the parent company's net profit growth rate of 60% to 130% of the high growth. Among them, Qibin Group, Nanbo A, three gorges new material profitability increased significantly, Jinjing Technology, Yaopi glass to achieve a profit, Luoyang glass loss significantly. Considering that 75% of glass demand comes from real estate, after another sharp rise in market prices in August, there is now a possibility of further increases in the range and region of price increases.
" from the historical data, since 2013, every year the glass industry from August to pull a wave of rising prices. This year is ahead of schedule from July into the peak consumer season. "The above-mentioned researchers believe that with the arrival of the property market "golden nine silver ten" peak season, glass prices in the short term is still expected to continue to rise. However, she also suggested that there could be a high point in November because glass prices have risen too much so far this year, and because glass products are homogeneity, industry concentration is high and capacity is difficult to exit, "there is a greater likelihood of a price fall in December".Not-type building materials into medium- and long-term investment highlights
in addition to product prices on the cement, glass industry performance improved to bring support, a number of industry researchers told reporters that in the industrial upgrading, waterproof and flood-proof to enhance the construction of urban pipe network, the opportunities in the field of new building materials are also worth focusing on, such as pipe, waterproof materials, fiberglass, steel and other fields of listed companies worth digging deep.
industry researchers pointed out that in the field of new building materials, investors can pay attention to three main lines: First, consumer-oriented new building materials. First of all, pay attention to some of the strong brand effect, product quality has the ability to premium sub-industry leading companies, such as glass fiber industry leader Changhai shares, microglass fiber industry leader and then rise technology. Second, with a strong offline layout, can provide seamless docking offline services companies, such as waterproof material leader Oriental Rain Rainbow, plate leader rabbit baby, etc. ; Industry, with the domestic mainstream bus transport companies to carry out extensive cooperation, third, the product has scarcity, high barriers to competition of new materials companies, such as Philly Hua is the domestic high-purity quartz glass leader, semiconductor recovery in that, the manufacturing side of the domestic speed up, so that the company is expected to benefit in both directions.
For new building materials, Guotai Junan focus is still partial value of the white horse varieties, concentrated in the real estate after the cycle of "brand building materials", such as Oriental Yuhong, Weixing new materials, Daya Technology, etc. ; "In the current market stock game situation, in doing 'beauty pageual', choose the best logic rather than the sub-optimal plate, real estate to inventory after the cycle building materials logic is better than early cycle cement, brand building materials than no brand, undervalued varieties better than overvaluation."the reform of State-owned enterprises into a different landscape
On August 22, SASAC announced the restructuring of China Building Materials Group and China Materials Group, and the merger of the two materials entered the substantive operational level. The restructuring of China Building Materials and China Materials Group will release the restructuring dividend in the short term, which will bring stimulating effect to the national reform sector. The "two materials" reorganization involves a number of listed companies (a total of 12 A-share listed companies, 2 H-share listed companies, business overlap covers cement, fiberglass, engineering services and other fields), the new company is expected to promote restructuring in an orderly manner, restructuring and integration dividends will be released in the short term, so that the concept of national reform sector will benefit overall. According to the researchers: "The merger of 'two materials' will help to coordinate the competitive relationship between the two cement giants, from the point of view of the allocation of resources within the group, Medium Cement, Tianshan shares and Southern Cement are expected to achieve the integration of cement production lines in east, central and southern China, Yanlianshan and Ningxia building materials are expected to solve the problem of competition in Gansu Province."
"two materials" foreshadows the rapid integration of the cement industry. As early as January this year, China Building Materials Group and China Materials Group has been under the medium-material energy-saving, Ningxia building materials, Yanlianshan, Chinese-owned technology, Tianshan shares, North New Building Materials, China Stone, Rite-Tai Technology and other nearly 10 A-share companies issued the actual controller planning strategic restructuring announcement. This move marks the building materials industry, the integration of central enterprises officially launched, to increase production capacity in an all-round way. On the evening of August 22, more than ten A-share companies, such as Rite-Tai Technology, North New Building Materials, Kaisheng Technology, China Stone, Luoyang Glass, Medium Materials Technology, Medium Materials Energy Saving, Ningxia Building Materials, Yanlianshan, China Materials International, Tianshan Shares, Guosan Stock, etc., issued another progress announcement. For one of the opportunities, the relevant researchers think that investors can pay attention to Ningxia building materials, Yanlianshan, Tianshan shares. Recalling the announcement issued in September 2015 by Ningxia Building Materials, Yanlianshan and Tianshan shares, when the actual controller, China Materials Group, proposed a one-year extension to fulfill its commitment to solve the competition in the industry, and now, as time approaches, the market has strong expectations for the integration of cement assets.
addition to cement assets, glass fiber and composites business or there is competition problems in the industry, there may be asset consolidation expectations. If the integration of high-quality assets is smooth, will further improve the industrial chain, play synergies, improve the comprehensive gross margin, profitability level and comprehensive strength, is expected to appear stronger situation, China's boulder and medium-materials technology was highlighted by researchers. Among them, China Building Materials' A-share listed company China Stone is a glass fiber listed platform, currently the world's glass fiber giant, the world's first production capacity, profitability in a high boom cycle; It is worth mentioning that the glass fiber industry is still at a high level of prosperity, the next 2 to 3 years are still expected to continue to maintain stable growth.
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