In recent years, many places have issued the requirements for waterproof standard raising, and it is particularly important to improve the quality of waterproof products. In order to protect the beautiful living environment and build home safety, many enterprises have upgraded the quality of waterproof materials and products. With the development of science and technology, more new waterproof materials will be produced. With the development of the national economy and the adjustment of the national industrial structure, China’s waterproof material industry will continue to encourage the application of new types.
New material information NMT | waterproof standard raising may become a trend, leading brands have obvious advantages
Waterproof industry chain: look at oil prices at the upstream and real estate at the downstream. Waterproof materials are mainly divided into coiled materials and coatings, accounting for about 70%. At present, domestic building waterproof materials mainly include waterproof coiled material and waterproof coating, of which the waterproof coating is mainly polymer cement waterproof coating, accounting for more than half.
From the perspective of production characteristics, the production technology and capital barrier of waterproof materials are relatively low, and the asset attribute is relatively light.
From the application characteristics, the waterproof effect is closely related to the construction quality, and the warranty period is relatively tolerant. At the use level, the waterproof effect is closely related to the construction quality. There are many non-standard low-end products. In addition, there is not enough attention paid to the problem of water leakage in China, and the water leakage and water seepage are mutually shifting, leading to a highly dispersed competition pattern in the waterproof industry.
At the demand level, the application of waterproofing is mainly residential and civil buildings, followed by infrastructure, and the basement is mainly used in the building construction. Because of the small waterproof area and many details of the indoor kitchen and bathroom, the use of coiled materials is not convenient for detail processing, so the waterproof coating is basically used. Due to the demand for real estate and the majority of basement use, the industry demand is closely related to the new construction of real estate. Waterproof raw materials belong to the petrochemical industry and are greatly affected by the price of crude oil, of which asphalt accounts for the highest proportion.
New material information NMT | waterproof standard raising may become a trend, leading brands have obvious advantages
The industry has accelerated clearing, waterproof standards have been raised, and roof photovoltaic highlights have emerged. From the perspective of industry structure, under the impact of repeated epidemic, real estate difficulties and rising costs, small and medium-sized waterproof enterprises are weak in risk resistance, or will be forced to liquidate. On the other hand, under the real estate dilemma, the problem of receivables was exposed, the “advance fund for share” model was difficult to continue, and the “curve overtaking” was more difficult. Considering that the overall differentiation of waterproof products is not large, business expansion will be more dependent on cost control, brand and supply capacity, and the channel will win customers. The future development of waterproof bibcock is more promising.
From the perspective of industry trends, at present, the warranty period of domestic waterproof water quality does not match the service life of the building. The leakage prevention of roof, toilet and exterior wall is only 5 years, and the penetration rate of residential buildings is high. Referring to overseas conditions, the warranty period of waterproof works in Europe and America is mostly 10 to 30 years, and the quality risk is offset through commercial insurance. Under the general trend of waterproof upgrading, if the “new waterproof regulations” of the Ministry of Housing and Urban-Rural Development are implemented, it is expected to drive the industry demand to increase and the low-end production capacity to be cleared. In addition, the accelerated promotion of rooftop distributed photovoltaic is expected to bring more than 10 billion market space for waterproof products such as TPO, and the active layout of leading enterprises such as Rainbow is expected to benefit from its future development.
New material information NMT | waterproof standard raising may become a trend, leading brands have obvious advantages
Since 2016, the concentration of the waterproof industry has been increasing, the Matthew effect has become prominent, and the leading strong are always strong. The main driving factors include: industry regulation and standard improvement; The concentration of downstream real estate enterprises increased; Rising prices of raw materials raise costs. Asphalt and other costs have risen significantly, and the profit of the waterproof industry is under pressure. Driven by the rising price of crude oil, the price of waterproof raw materials such as asphalt and lotion continues to rise significantly. At the same time, because the sales are mainly direct sales of real estate and the capital end of real estate enterprises is under pressure, the cost pressure is difficult to be transmitted to the downstream in time.
In 2022Q1, the gross profit rates of Dongfang Yuhong, Keshun and Karen were 28.3%, 25.7% and 20.5% respectively, with a year-on-year decrease of 4.6 pct, 6.4 pct and 12.3 pct; The net interest rate was 4.9%, 5.7% and 2.4% respectively, with a year-on-year decrease of 0.4 pct, 5.7 pct and 9.8 pct. Dongfang Yuhong is the leader in the field of waterproof materials in China. It has the leading advantages of capacity scale and brand reputation. The improvement of industry concentration has created a leading barrier for the strong to remain strong. The company has accelerated the expansion of market share through channel sinking and category expansion. Its performance growth is resilient and is expected to continue to widen the gap with competitors. The waterproof industry has the property of advance fund, so its operation quality is also a problem that needs to be focused on, mainly focusing on cash flow and accounts receivable management. Compared with Yuhong, Keshun and Karen, in terms of cash flow, Yuhong performs better in cash ratio and operating cash profit ratio; At the level of accounts receivable management, Yuhong’s accounts receivable turnover rate and accounts receivable/operating income are also significantly better than the other two companies. This is also true of the leading enterprises, and the pressure on a large number of small and medium-sized enterprises to make profits is even greater.
New material information NMT | waterproof standard raising may become a trend, leading brands have obvious advantages
Waterproof is a high-quality track in consumer building materials, with a market scale of more than 100 billion. In the short term, the demand growth of infrastructure end brought by the strengthening of “stable growth” and the waterproof demand brought by the renovation of old residential areas and urban renewal will support the steady development of the industry; The price of raw materials rose, the withdrawal of small and medium-sized enterprises accelerated, and the upgrading process of industrial concentration accelerated. In the medium and long term, the improvement of building warranty period, BIPV photovoltaic roofing and other new application scenarios will drive the upgrading of industry product quality and the increase of the proportion of high-end products, and the resulting market space expansion dividend will be more occupied by leading enterprises.