Building materials industry is expected to usher in a new wave of demand

With the opening of a new round of large-scale infrastructure, the building materials industry is expected to usher in a new wave of demand. The notice issued by the Ministry of Industry and Information Technology and the Ministry of Housing and Urban-Rural Development on September 1 to promote the production and application of green building materials has given a certain boost to the development of the building materials industry. The peak season effect superimposes the reform expectation of state-owned enterprises, and the overall valuation of listed companies in building materials is expected to increase by a certain margin.

Infrastructure plus code brings structural opportunities

Infrastructure investment remains an important starting point for steady economic growth. Following the introduction of the "Belt and Road" strategic plan, the State Council has recently adjusted the capital ratio of fixed asset investment projects in order to promote steady investment growth. First, the National Development and Reform Commission plans to issue long-term special bonds to the Postal Savings Bank through the China Development Bank and the Agricultural Development Bank, and establish special projects for infrastructure construction. Immediately after the executive meeting of the State Council, it also proposed to adjust and improve the capital ratio system of fixed assets investment projects. The introduction of these stimulus policies will effectively solve the problem of insufficient capital for projects due to debt control by local governments. It is not difficult to see that the continued increase in capital investment will undoubtedly increase the demand for the building materials industry.

Although according to the economic data released by the National Bureau of Statistics during the first half of the year, fixed asset investment increased by 11.4% year-on-year and the growth rate dropped by 2.1 percentage points from the first quarter. However, many of the infrastructure projects included in major engineering packages have shown “contrarian trends”. "Ups" situation. For instance, according to the release of data from the Ministry of Communications, in the first half of this year, the fixed-asset investment of highway waterways reached 718.8 billion yuan, a year-on-year increase of 9.5%, slightly higher than the same period of last year. According to the investment released by the China Railway Corporation, the progress of investment in railway projects this year is also better than in the past. The total investment of the 11 major engineering packages will be between 13 trillion and 15 trillion. In addition, at the national level this year, the "seven project packages" have been launched. It is estimated that the investment will exceed 10 trillion yuan. In the first half of the year, it has already completed a total investment of 3.3 trillion yuan. In addition, the NDRC has also introduced many measures to attract social capital to participate in project packages, such as the establishment of a PPP project library.

“The building materials sector is more focused on the new building materials sector.” In the industry investment opportunities, Haitong Securities (12.88 -0.39%, consulting) believes that the three types of building materials companies have room for growth: 1, involved in "water": the history of the domestic municipal pipe network Under the background of bad debts and bad water environment, there is ample room for long-term pipeline network construction and water management services, and recent policies such as water ten and PPP model exploration have obvious tendency. 2, involved in "environmental protection": The product can upgrade, innovate, replace the traditional program, open up the application space. Such as integrated housing replacement parts, glass fiber composite material alternative steel/aluminum, enamel steel plate widening applications. 3, involving the "home": involving the "home" products in the narrow sense is the choice of consumer products, such as ceilings, bathroom ceramics, coatings, home improvement pipeline, etc.; brand force can actually increase corporate share and profitability.