The diversified layout of leading enterprises in plastic pipe will welcome growth opportunities in these areas

First, multiple layouts, 2018Annual Major Business Expected to Realize Steady Revenue Growth

In this research, Zuo Manlun, executive director and chief executive officer of China Liansu Plastics Co., Ltd. stated that the company's 2017 segments are growing steadily. It is expected that the overall revenue will continue to grow steadily in 2018, while building materials and other businesses will have lower base figures. , will maintain rapid growth.

Specifically, as the Chinese government actively promotes and implements a number of infrastructure project policies to promote the economy, the pipeline and fittings business will continue to benefit from a series of favorable government policies, and the gross margin level will stabilize at 25-30%. , The real estate destocking policy, the family's second-hand decoration and furniture consumption upgrade, and the promotion of prefabricated construction, all these factors have driven the development of the supporting building materials home industry. It is expected that the business in the next 3 to 5 years will account for the overall revenue of the group. 10~15% level.

In the environmental protection business, benefiting from the support of the national environmental protection policy, the market capacity will continue to expand. The environmental protection industry will bring long-term commercial synergies to the pipeline and pipe fittings business, and the proportion of environmental protection revenue will steadily increase in the future.

2016, 2017 Company's business income

Second, the degree of concentration in the plastic pipe industry is improved. The leading big brother is the beneficiary.

'The concentration of plastic pipe industry will be further enhanced! Now that the supervision of building materials has become increasingly stringent, the concept of consumption has been upgraded, the pipeline industry will be exacerbated, the quality of products in the future will be poor, and the production scale will be small. The elimination of companies with environmental protection standards will be eliminated!' Plastic executive director and chief executive Zuo Manlun said in the investigation of Opportunity.

Asked about the impact of environmental protection inspections on the company, Zuo Manlun said: 'The company has fully promoted the production of lead-free technology, not affected by environmental protection verification.'

Zuo Manlun also gave detailed answers to the company's production capacity, market share, business conditions and future plans. He said that China Liansu has 22 production bases, and its designed annual production capacity reaches 2.4 million in 2017. Tons, the capacity utilization rate is 83.8%. In 2018, it plans to add 15-20 million tons of capacity, and the capacity utilization plan will be increased to around 85%-88%.

China Liansu has a share of approximately 18-20% in the domestic market. The company's pipeline and pipe fittings business is subject to policies such as 'Sponge City, Underground Pipeline, Rural Construction, Wastewater Treatment, Beautiful Village, Xiong'an New District, Guangdong, Hong Kong, and Macao's Grand Bay Area'. As a result of the stimulus, the demand for municipal products will continue to grow; in terms of business planning, the company will participate in the construction of sponge cities and underground pipe galleries through bids for government PPP projects. The underground pipe gallery construction market in Xiong'an New District is expected to be worth 100 billion yuan! Zuo Manlun also told Opportunity that in the face of strong demand in rural areas, the company is well prepared for channel construction and product supply chain.

Third, the new urbanization to promote the building materials home welcome opportunities

In his interview, Zuo Manlun said that compared with the pipeline business, the building materials home business has a smaller base, a faster income growth rate, and a 17% revenue growth of over 30%. With the continuous deepening of supply-side structural reforms, new urbanization The advancement of secondary houses and real estate refurnishing in core cities will bring new opportunities for the building materials home industry. It is expected that it will account for around 10%-15% of the Group's overall income in the next three to five years.

Fourth, the synergy effect is prominent, executive director Luo Jianfeng talks about the original intention of entering environmental protection

Executive Director Luo Jianfeng detailed the purpose and original intention of China Liansu Investment in the environmental protection industry in this video survey. He stated that the group’s environmental protection business covers water treatment, solid waste disposal, waste gas treatment, soil remediation, technical consulting and environmental testing. , Scientific research services, etc. The environmental protection demand is stable for a long time, and it is a powerful complement to the strong cyclical industries such as pipelines, building materials, and real estate.

As the company’s new performance growth point in the future, the environmental protection business has successfully won several large-scale projects in the year, including municipal sewage, river management, soil remediation, underground comprehensive pipe corridor, sponge city, integrated water purification equipment and other projects. There is a demand for plastic pipes and fittings. Therefore, the environmental protection industry will bring long-term commercial synergies to the Group's pipeline and fittings business.

For the planning of follow-up environmental protection business, he said that the company will consider the risk return rate of different projects and obtain the target projects through direct bidding or mergers and acquisitions. The environmental protection sector will have good income growth and profit improvement in the next 3-5 years.

V. Accelerating overseas distribution, Global leader will become the new economic growth point of the group

'Leaders Global Home' is expected to be another growth point for the Group as 'one-stop home building professional shopping mall'.

Zuo Manlun introduced the income structure of 'Leading Global Home' in detail. He stated that the current income of 'Leading Global Home' is mainly platform proprietary trading, rent and other value-added services, and more warehousing will be provided in the future. , Logistics and Financial Services.

2016 GoodChinaBrand | ICP: 12011751 | China Exports