How should the coating industry reform the supply side of gold?

2016 "supply-side reform" has been frequently talked about by high-level speeches, but also become a high-frequency word for the home building materials industry. What exactly is the supply side? What is supply-side reform? What is involved in supply-side
related
coatings and coatings industry? How should the coating industry reform the supply side of gold?
opportunities for the coatings industry from supply-side reforms?
of supply-side reform is the continuation and focus of the "comprehensive deepening reform" in the factor area of the Third Plenary Session, and the current blueprint has been laid out, and the future prospects are expected. What investment opportunities have supply-side reforms created for the coatings industry?
One, "two-child policy" will increase real estate demand, promote paint consumption
Chinese Over the next three to five years, Chinese is expected to grow by more than 100 million. First do not say that these newly born children grow up to marry and buy a house, now more than 3 rooms 1 hall husband and wife, in order to two children have their own room, will certainly consider changing the purchase of 4 rooms 1 hall of the big room, which willthe real estate market demand, thereby promoting the consumption of paint and other decoration building materials.
, "real estate inventory", will drive the consumption of paint and other building materials
", "real estate inventory" is one of the main investment opportunities brought about by the supply-side reform. "To dissolve real estate inventory, promote the sustainable development of the real estate industry", which is the real estate as a pillar industry of reconfirmment. To promote the sustainable development of the real estate industry, not only because this industry can drive the development of steel, cement, coatings and other downstream industries, to resolve the production capacity of these industries, effectively stimulate employment, but also from the promotion of "urbanization of people" considerations, the development of the real estate industry is to enable 250 million lack of corresponding citizens' rights of the urban resident population can really settle down the necessary material premise. This is to eliminate supply constraints at the regulatory level.
decision-making level from both sides of supply and demand put forward specific measures to inventory, including migrant workers, the implementation of household registration system reform program, promote "buy-to-let" and "improve industrial concentration" and other angles. The recent liberalization of the settlement policy for the ultra-raw black household population is part of the implementation of the policy.
According to the statistics of the Academy of Social Sciences, the current total inventory of China's commercial housing about 3,996 million square meters, of which the inventory of existing housing about 426 million square meters, the decoization cycle of 23 months, the period of housing inventory of about 3.57 billion square meters, the decoization cycle of 4.5 years, the inventory of third- and fourth-tier cities is still high. If the follow-up policies continue to roll out in various places (including the modalization of affordable housing, tax concessions increased, migrant workers purchase subsidies, etc.), the layout of the third- and fourth-tier cities of housing enterprises will fully benefit from the third- and fourth-tier cities to inventory process.
real estate inventory digestion, will inevitably bring good consumption growth to the paint and other building materials market, especially in the high inventory of the third and fourth-line market. Many of China's
coatings companies
mainly concentrated in the third and fourth-tier market, including local paint leader Carberry.
Tho, eliminate zombie enterprises, resolve excess capacity, will promote the upgrading and transformation of the paint industry

china has 78,000 paint companies, tens of thousands of
coating brands
. With the maturity of the industry, although a small number of paint enterprises shut down and turn or eliminate out, but many workers set up a new business brand is still endless, diatom mud and art coatings enterprises are springing up, rather than chicken head, not for anchovies between Chinese enterprises and very little integration, the case of mergers and acquisitions between local enterprises is rare. Many enterprises instead opened factories in the country, large-scale expansion of production capacity, happy. With the high-speed development of China's paint industry in the past few years or more, China has already become a global coating country. But with China's economy entering the new normal, the phenomenon of oversupply in the paint industry began to highlight, serious overcapacity, many dealers have more than enough inventory can be sold for another year, effectively resolve overcapacity has become the paint industry's top priority. According to Sun Lianying, president of the China Coatings Industry Association, China's total paint production reached 17.182 million tons in 2015, an increase of 626.3 million tons, up 3.8% YoY; As a result of the expansion of production capacity, the growth of sales of paint enterprises has slowed significantly, and many enterprises have even experienced a serious decline in sales. If the coatings industry does not eliminate zombie enterprises and defuse excess capacity, large-scale enterprises will no longer take the lead in mergers, acquisitions and restructuring of other enterprises that are competitive or have a certain market, especially small and medium-sized enterprises or small and medium-sized enterprises, and the growth will slow down or become more obvious. And once the growth is weak, will certainly be in the brain drain, can not make ends meet in the quagmire more and more deep and never look back.
eliminate zombie enterprises, to resolve excess capacity, for large-scale, powerful, skilled paint enterprises, is undoubtedly an opportunity for development. But in order to get a piece of the trend of the times and become the winner in resolving excess capacity, we must first achieve the "transformation and upgrading" of the gorgeous turn. In May 2015, the State Council promulgated "Made in China 2025", which sets out a programme of action for industrial development in the next decade. On the one hand, the traditional industry is facing transformation and upgrading, inter-industry mergers and acquisitions will accelerate, the demand for mergers and acquisitions loans, investment bank services is huge. On the other hand, new industries, new technologies, new business models, including the Internet, cloud computing, big data, information technology, bioengineering, new energy, environmental protection and energy conservation, modern services and other fields are emerging. In addition to credit needs, the need for financial advisers, asset management and other services will be very urgent. If coating enterprises can not in this process as soon as possible transformation and upgrading, forming their own competitive advantage in a certain area, it may become one of the eliminated excess capacity.
, the development of the service industry has put forward high demands on the coating industry
Three-point paint, seven-point construction, paint itself is a semi-finished product, the dependence on service is greater. In recent years, the rise of art coatings and diatom mud products, relying on personalized coating effect. These effects need to be presented with good technical construction and service levels. Why the profit of art coating is richer than conventional products, making money is the service. In recent years, The heavy coating market represented by Libang, the demand for services is greater, the future
co paint factory
merchants, without good service capacity, can not form their own reputation and reputation, it is difficult to stimulate the market competition to survive and develop.
, reducing costs will help paint companies build up momentum
"to reduce costs to help companies maintain competitive advantage", which means that companies will benefit from structural tax cuts. Open source thymosing, reducing the efficiency is the coating industry "supply-side reform" in the process of the first thing to do. Just past 2015, overall profits in the coatings industry grew 10.9% year-on-year, more than production and sales growth, mainly because of the continued decline in crude oil and other bulk raw materials, many upstream raw materials have been low, which also provides some room for some companies to reduce their product prices in 2016. But if one day raw material prices return to high levels, sales growth is stretched, how to maintain the normal profits of enterprises?
In addition to giving full play to the advantages of group procurement, optimizing formulation, improving the advanced production process, reducing transportation costs, but also to streamline redundant staff, improve the efficiency and enthusiasm of on-the-job staff, improve the per capita output of employees. AkzoNobel, which employs 7,700 people in China, has set a target of 20 billion yuan in revenue in China in 2015, with actual sales in China estimated at about 14 billion yuan and a per capita output value of 1.82 million yuan. Libang's total number of employees in China currently exceeds 7,000, and sales in China are also around 14 billion yuan, with a per capita output value of 2 million yuan. China Resources Coatings (excluding Lili) about 1500 employees, annual sales of about 2.5 billion yuan, per capita output value of 1.67 million yuan. Carberry last year sales of about 3 billion yuan, more than 2,600 employees, per capita output value of only 1.15 million yuan. It can be seen that the reduction of staff efficiency is part of the paint enterprises to reduce costs and save the development of the necessary action.
Se., preventing and resolving financial risks contributes to the healthy development of the paint capital market
"To prevent and resolve financial risks and accelerate the formation of a stock market with complete financing functions, a solid basic system, effective market supervision and adequate protection of investors' rights and interests." This statement shows the attitude of the top leadership towards the development of the stock market.
venture finance, the purpose is to effectively solve the financing problems of entrepreneurs through a set of financial system innovations, including the new three boards, angel funds, PE/VC, as well as crowdfunding, crowdsourcing, crowdfunding, etc. To develop venture finance, on the one hand, we should establish and improve the capital market system, support qualified start-ups to incubate and list, and support start-ups to raise funds through the bond market; Station-based systematic financial services, for enterprises with development prospects and projects in line with national policies, to help the horse, send a ride, so that "grassroots" innovation has become popular, flowering every place, in the process of helping entrepreneurs realize their dreams, expand the development space of the paint industry.
to resolve financial risks, coatings companies listed financing, seeking state project support is bound to bring good. China's paint industry listing road twists and turns long, although the ad adm. 30 or 50 new three-board enterprises, but in recent years the real main board of only three or five enterprises, private enterprises on
third trees
one, when to ring the bell, when to list circulation is not yet known. "Supply-side reform" will certainly bring good news to the way of listing and the healthy development of enterprises after listing.
7, "innovation, green" and other development concepts will become the main theme of the development of large-scale Tu enterprises
"13th Five-Year Plan" clearly put forward the "innovation, coordination, green, open, sharing" five development concepts, clear the future economic and social development of China's guidance and focus, opened a new journey to build a well-off society in an all-round way, but also for the paint industry, including the development of various industries and fields pointed out the direction.
's green development focuses on improving the ecological environment, including speeding up the construction of the main functional area, promoting the development of low-carbon circular economy, comprehensively saving and efficiently utilizing resources, building the ecological environment safety barrier, and realizing the harmonious coexistence of man and nature. According to the research of the People's Bank of China, China's annual green investment demand will be 2 trillion yuan in the next five years. WWF estimates that China's financing needs during the 13th Five-Year Plan period are about 14.6 trillion yuan. Visible, China's green investment there is a huge space for development, paint industry has been the pioneer of green, health industry, "innovation, green" and other development concepts will become the main theme of the development of large-scale coating enterprises, water-based paint,
UV paint
, dry powder paint,
powder paint
, organic coatings and other green paint future development space is huge.
8th, the upgrading of household consumption to produce new demand for paint
"13th Five-Year Plan" period, China will be expected to achieve the goal of building a well-off society in an all-round way, the level of per capita income in 2020 will be double that of 2010. According to international experience, when the per capita GDP is about US$8000, the consumption structure will be upgraded from survival consumption to development consumption, and the per capita GDP of our country is about US$7,800, which is close to this stage. With the further improvement of the income level of residents and the rise of the middle class, the consumer demand of residents will change from imitation-type, wave-type consumption to personalized and diversified consumption, from the basic needs of "eating through and using" to "learning music, health and beauty" direction, which will inevitably give birth to a large number of high-quality, personalized decoration products and services of new demand. Art coatings, textured coatings and other high-quality paint products will become the mainstream of future paint consumption.
In short, under the background of supply-side reform, China's paint enterprises must take supply-side structural reform as the main development direction, gain insight into the development and change of the industry from the policy, improve management performance and total factor productivity through technological transformation, internal excavation, improve supply quality efficiency and cultivate new competitive advantages.