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Architectural coatings: Nuggets engineering market, deepening channels to welcome change

architectural coatings: Nuggets engineering market, deepening channels to welcome change

July 10, 2020

in the first half of 2020, the decoration and building materials sector continued its excellent performance in 2019, with obvious excess return. From the perspective of further development space and cash flow balance, it is optimistic about the expansion and growth space of small B project market, especially the small B market with 30 patents applied for in the sinking market; At the same time, it is suggested to pay attention to the impact of demand changes such as prefabricated buildings and old renovation on the production and manufacturing, channel docking, service mode, etc. of building materials enterprises

changing demand: the engineering side remains strong, paying attention to marginal changes such as prefabricated decoration and old renovation. The engineering side remains strong and pays attention to marginal change coatings such as prefabricated decoration and old renovation. The concentration improvement trend of real estate developers continues, and the hardbound delivery volume is expected to maintain a rapid growth. Leading companies with corresponding engineering business layout and expansion capacity will continue to benefit, while the strategic shareholding of real estate developers will further deepen the engineering business cooperation mode; The cash flow of engineering business is still under pressure, but the improvement trend is expected to continue in 2020. Prefabricated buildings and industrial decoration are combined with the preservation and rapid penetration of the results, and the acceleration of the old reform process is expected to drive the demand for hundreds of billions of building materials. At the same time, the corresponding procurement form of building materials may change

small B project market: channel optimization, sinking the market has great prospects. The channels of the building materials industry are relatively extensive. With the intensification of competition under the stock mode, channel sinking and refined operation become inevitable. In order to achieve growth under the reduction of the industry in the future, small B project is a must, especially in the third and fourth tier sinking market. Sinking the market this conference is hosted by China Plastics Processing Industry Association. Small B project has high requirements for channel management and control, and leading enterprises with strong system construction and capacity are expected to obtain first mover advantages. A number of leading enterprises have actively invested in the layout of the third and fourth tier small B sinking market, the effect has been shown, and the growth space is expected to be further opened

category expansion: diversified industries (4) measure the relative uncertainty introduced by repeatability U4; Business extension has become a strategic direction. Referring to the experience of foreign building materials groups and relevant domestic industries, we believe that category expansion is the only way for leading enterprises in the subdivided industry to further develop into large building materials groups, and it is also an important means to resist the penetration of their own categories. At present, leading enterprises such as Jianlang hardware, Weixing new material, Dongfang Yuhong, Beixin building materials, and sankeshu are trying to acquire or expand the category internally, and the mutual penetration between waterproof and coating in large items has intensified

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