Plastic pipe fittings are commonplace in daily life, but few people pay attention to the companies that produce these products. Foshan, a 32-year-old company, has managed to rely on this unobtrusive product to be the first in the country. This company is China Liansu (02128.HK).
In 2017, China Liansu achieved a revenue of 20.36 billion yuan and a net profit of 2.266 billion yuan, both of which hit a record high. In addition to plastic pipe and building materials, the company continued to diversify its home building materials and environmental management fields, and established a major business with the pipeline. Good synergy effect. Recently, the Securities Times e-company reporter walked into the headquarters of China Liansu Plastics, and invited Zuo Manlun, CEO of China Liansu, as a guest micro-interview to describe the company's future development strategy.
Pipeline industry leader Hengqiang
Pipeline pipe fittings are the main business of China Liansu, accounting for more than 80% of the revenue. Municipal engineering and people's livelihood infrastructure construction is the main demand for the business, such as sponge city, underground pipe gallery, rural construction, sewage treatment, beautiful village, Xiong'an New District, Guangdong, Hong Kong, Macao and the development of the Bay Area, and other policies, continue to contributing orders to China Liansu.
According to the “13th Five-Year Plan Period (2016-2020) Development Proposal for China Plastic Pipeline Industry”, the output of plastic pipes in China will exceed 16.7 million tons by 2020. In 2016, the output of plastic pipes in China will be 14.36 million tons, which means the next five years. The compound growth rate of plastic pipes is about 3%.
'The company will actively participate in the basic construction of sponge city and underground comprehensive pipeline corridors. In addition, Xiong'an New District, Guangdong, Hong Kong and Macau, Dawan District, rural river improvement and urban pipe network construction and other related infrastructure, is the company's future sales growth Highlights, the market is expected to reach 100 billion yuan. ' Zuo Manlun told the e company reporter.
According to statistics, there are more than 3,000 large-scale plastic pipe production enterprises in China, of which about 300 enterprises have an annual production capacity of over 10,000 tons, and more than 20 annual production capacities exceed 100,000 tons. As the industry and the country Fiscal investment is closely related, so policy changes have a great influence on the industry. With the country's increasingly strict supervision of building materials, people's consumption concepts gradually upgrade, the domestic pipeline industry is facing a reshuffle.
'Next, the poor quality of products, small production scale, and the elimination of environmentally unfriendly companies are the general trend. Enterprises with capacity scale and quality advantages will inevitably gain greater market space, namely the Matthew's effect of 'strong and consistent'. Liansu's sales network and production base are nationwide layouts, and the product line is also very complete. The future goal is to become the global leader in the field of plastic pipe materials. ' Zuo Manlun said.
In terms of capacity planning, China Liansu currently has 22 production bases. In 2017, the company's designed annual production capacity will reach 2.4 million tons, and its capacity utilization rate will be approximately 83.8%. In 2018, the company will add 150,000 tons to the base of 2017. 200,000 tons of production capacity; at the same time, the company will upgrade through technological upgrading and increase the utilization rate of the production capacity to the level of 85%~88%.
Build a big environmental platform
In recent years, the government has initiated environmental inspections in many industries, and the plastics pipeline industry has not been spared. However, Zuo Manlun bluntly stated that the strict enforcement of laws in the country is a good thing for the company. 'The company's production equipment is installed in line with environmental protection. Standard dust-proof and environmental protection devices, and the full implementation of the production of lead-free process technology; but small workshop-style or environmental protection investment will be affected in environmental protection verification, and further promote the industry concentration.
In addition, environmental protection has also given birth to a new business direction for China Liansu Plastic. In April 2016, the company formally entered the environmental protection industry through the acquisition of the Guangzhou Environmental Protection Engineering Design Institute (abbreviated as 'Canton Hospital'). Subsequently, the company injected capital into the joint venture. Plastic environmental management company, began to build a 'great environmental protection' platform.
After more than a year of development, a number of subsidiaries and partners, including Guangzhou Institute of Science and Technology, Huaqing Testing, Lianqing Environmental Protection, Zhanjiang Water, Hainan Hazardous Waste, Shunde Junanzhen Wastewater Treatment Plant, have been formed. The business covers water treatment and solid waste disposal. Material disposal, waste gas treatment, soil remediation, technical consulting and environmental testing, scientific research services and other fields.
Cutting into the environment is not a simple decision to “pick the head”, but is the result of careful consideration by the company. Zuo Manlun told reporters that in the development of the environmental protection industry, the company has made full use of the advantages of its own plastic pipe and other sectors. Last year the company Successfully won several large-scale environmental protection projects involving municipal sewage, river management, soil remediation, sponge city, integrated water purification equipment, etc. These environmental protection projects have a large demand for plastic pipes and fittings. The company can be a supplier. To provide pipeline products. Therefore, the environmental protection and pipeline business will establish long-term commercial synergies, and the proportion of environmental protection revenues will steadily increase in the future.
Nuggets Overseas Building Materials Business
Beyond the pipeline and environmental protection sector, the building materials business is also a new growth point for China Liansu in the past few years. In 2017, the company’s building materials home business grew by more than 30%.
Zuo Manlun believed that with the continuous deepening of structural reforms on the supply side and the advancement of new urbanization, the renovation of new houses and real estate in core cities will create new opportunities for the building materials home industry. The company is actively participating in real estate projects in the Mainland and accelerating expansion. The business of building materials including door and window profiles, plumbing fixtures, kitchens, etc., will bring impetus to the business. 'We expect that in the next 3 to 5 years, the building materials home business will account for about 10% to 15% of the company's overall revenue.'
At the same time, the company is also laying out a business platform for exporting Chinese building materials production capacity overseas, especially in the 'Belt and Road' area. This platform is known as 'Leading Global Home'.
According to the briefing, Leading Global Homes is a major brand new one-stop home building material sales mall, which is mainly completed through an online cross-border e-commerce platform and offline building materials home professional malls located in major cities around the world. Currently, the company It has already stored 12 properties in 8 cities including five countries including the United States, Canada, and Australia. The total area of the site is about 2 million square meters. It is estimated that the area can be built over 4 million square meters, which lays the foundation for the development of the Global Business Center.
In the future, we will work hard to build our global home as the largest one-stop home building building professional mall in the region. We will provide more warehousing, logistics and financial services in the future. The shopping mall in Sydney, Australia has been leased for 6 Monthly commissioning operations; the United States Long Island New York project will be opened in the next two years of operation, is expected to lead global homes will become another growth point of the company's future performance. 'Zuoman Lun said.