A few days ago, six ministries and commissions including the Ministry of Housing and Urban-Rural Development jointly issued a document confirming that pilot projects for building materials to rural areas will be conducted first in Shandong and Ningxia and that cement will be used to promote rural areas during the pilot period. As the start of the pilot work was seen as a prelude to the introduction of the building materials to the countryside policy, this move has stimulated market enthusiasm to a considerable extent.
Experts pointed out that the construction of the building materials to the countryside is a icing on the cement industry where the fundamentals are improving. After the official implementation of the policy of building materials to the countryside, new types of building materials such as plastic doors and windows and gypsum board will probably be the biggest beneficiaries.
The implementation of building materials to the countryside is far more difficult than the supporting measures for home appliances to the countryside. From the end of 2009, building materials to the countryside has become a hot topic of market discussion. In January of this year, the Central Government stated in its No. 1 document that it is necessary to take supporting farmers’ housing construction as an important measure to expand domestic demand and take effective measures to promote building materials to the countryside. However, relevant policies have not been introduced since then. The launch of this pilot project is considered to be a prelude to the large-scale promotion next year. 'The construction of a house is different from a buyer's electricity, and one investment is very large; there are thousands of types of building materials involved, and most of them are in bulk, unlike household appliances. From these perspectives, the implementation of building materials to the countryside is much more difficult than the previous home appliances to the countryside. 'Digital cement network president Liu Zuoyi said. The policy has been mentioned from the beginning of the year to the beginning of the trial. There is a brewing period of more than six months in the middle, which shows the caution of relevant departments.
According to the pilot work opinion, 'the pilot provinces and regions can formulate policies in line with the actual situation in the province to support farmers in building their own homes in accordance with the law and regulations, and effectively promote building materials to the countryside, and the local finances will bear relevant expenditures'. In this regard, Liu Zuoyi pointed out that China's geographical differences are obvious. The cost of rural housing construction in the eastern, central and western regions is very different. The above policies fully reflect the characteristics of 'according to local conditions'.
Qin Zhanxue, vice chairman of the China Building Materials Distribution Association, which has been actively promoting building materials to the countryside, stated that in order to strictly monitor the sales channels and outlets of rural products, and prevent counterfeit and shoddy cement from flowing into the rural market, the pilot program will clearly promote the registration of building materials to the countryside distribution outlets. system. At present, the Ministry of Commerce has entrusted the association to draft the “Measures for the Filing of Distribution Channels for Building Materials to the Countrysideâ€. The introduction of the “Measures†will greatly increase the access threshold for cement distributors in the countryside, effectively guarantee the transaction credibility of the building material dealers and cement for the rural areas. the quality of.
Pulling limited demand for cement has increased the bargaining power for the industry's upward trend. The market participants are optimistic about the launch of the pilot project. 'Because of the complexity of building materials to the countryside, there are big doubts about whether the market can smoothly implement it. The pilot work was outside the market's expectations and constituted a positive for building materials stocks. 'Orient Securities' report clearly pointed out.
The extent to which building materials go to rural areas can stimulate new demand in rural areas. This is the focus of market participants. He Zhengsong, a building materials dealer from Jingmen, Hubei, calculated a bill: A new house in the rural area needs 30 to 40 tons of cement, and one ton of cement is calculated at 300 yuan. Building farmers can save about 1,500 yuan. 'It should be said that the money is still considerable, but it is less than the cost of building more than 100,000 yuan. Building a house is a major event for farmers throughout their lives. Spending less money will not inspire them to build new houses. 'He Zhengsong judged.
Chang Jiang Securities researcher Zou Ge also analyzed that at present, the proportion of cement consumption in China's rural areas accounts for about 30% of the country, which is mainly rural infrastructure, this part of the pilot work did not involve. The proportion of cement used in rural housing construction is actually less than 10%. According to this measure, cement demand from building materials to the countryside will form a new growth point of 1% 3%, which will have limited improvement in the fundamentals of the industry.
Although the pull effect is not significant, Zou Ge believes that this policy is an important catalyst for the stock price of listed companies. According to statistics, in August the fixed investment in China's cement industry was the first 'negative growth' this year, which means that the supply will be effectively controlled next year. At the same time, the state's vigorously promoted merger and reorganization policy in the cement industry will also benefit large cement companies and listed companies. In this case, any improvement in the demand side is to increase the bargaining power for the industry's upward trend.
New building materials such as gypsum board, plastic steel doors and windows, or indeed beneficiaries, actually, the expectation of the industry for building materials to the countryside is far more than the cement product of this pilot project. The pilot points out that it is necessary to actively explore the possibility of energy-saving, earthquake-resistant and other building materials going to the countryside. Market participants also suggested that the future coverage of building materials to the countryside should be further expanded. In addition to the traditional cement, glass and ceramics, it can also include new types of building materials such as plasterboard and plastic steel doors and windows.
The promotion of building materials to the countryside is not only a means of boosting domestic demand but also a good opportunity to promote new building materials. 'Qin Zhanxue said. According to the opinions of the China Building Materials Circulation Association, there are three thresholds for entry of building materials to the countryside: first, we must meet the national standards; second, we must meet the environmental standards and issue the 'green product logo'; and third, the short-listed companies need There is a larger capacity scale.
He Zhengsong said that cement, glass, and ceramics are the basic materials for building a house, and subsidies will not be used by farmers. The gypsum board, plastic steel doors and windows are different, the gypsum board can do ceiling, make the house look more beautiful, but at present there is not much used in rural areas. The performance of plastic doors and windows is better than that of aluminum alloys, and the prices of the two are similar. If subsidies are implemented, it will accelerate the promotion and application in rural areas.
Available without building materials products, the demand has greater flexibility. At present, the market capacity of new building materials is still relatively small, and is still in the process of market development. The policy of building materials to the countryside will accelerate its growth rate. 'A brokerage firm pointed out that, unlike cement, glass and other industries, new types of building materials involved relatively few stocks, resources are relatively scarce, and their share prices are also more susceptible to policy incentives.
Experts pointed out that the construction of the building materials to the countryside is a icing on the cement industry where the fundamentals are improving. After the official implementation of the policy of building materials to the countryside, new types of building materials such as plastic doors and windows and gypsum board will probably be the biggest beneficiaries.
The implementation of building materials to the countryside is far more difficult than the supporting measures for home appliances to the countryside. From the end of 2009, building materials to the countryside has become a hot topic of market discussion. In January of this year, the Central Government stated in its No. 1 document that it is necessary to take supporting farmers’ housing construction as an important measure to expand domestic demand and take effective measures to promote building materials to the countryside. However, relevant policies have not been introduced since then. The launch of this pilot project is considered to be a prelude to the large-scale promotion next year. 'The construction of a house is different from a buyer's electricity, and one investment is very large; there are thousands of types of building materials involved, and most of them are in bulk, unlike household appliances. From these perspectives, the implementation of building materials to the countryside is much more difficult than the previous home appliances to the countryside. 'Digital cement network president Liu Zuoyi said. The policy has been mentioned from the beginning of the year to the beginning of the trial. There is a brewing period of more than six months in the middle, which shows the caution of relevant departments.
According to the pilot work opinion, 'the pilot provinces and regions can formulate policies in line with the actual situation in the province to support farmers in building their own homes in accordance with the law and regulations, and effectively promote building materials to the countryside, and the local finances will bear relevant expenditures'. In this regard, Liu Zuoyi pointed out that China's geographical differences are obvious. The cost of rural housing construction in the eastern, central and western regions is very different. The above policies fully reflect the characteristics of 'according to local conditions'.
Qin Zhanxue, vice chairman of the China Building Materials Distribution Association, which has been actively promoting building materials to the countryside, stated that in order to strictly monitor the sales channels and outlets of rural products, and prevent counterfeit and shoddy cement from flowing into the rural market, the pilot program will clearly promote the registration of building materials to the countryside distribution outlets. system. At present, the Ministry of Commerce has entrusted the association to draft the “Measures for the Filing of Distribution Channels for Building Materials to the Countrysideâ€. The introduction of the “Measures†will greatly increase the access threshold for cement distributors in the countryside, effectively guarantee the transaction credibility of the building material dealers and cement for the rural areas. the quality of.
Pulling limited demand for cement has increased the bargaining power for the industry's upward trend. The market participants are optimistic about the launch of the pilot project. 'Because of the complexity of building materials to the countryside, there are big doubts about whether the market can smoothly implement it. The pilot work was outside the market's expectations and constituted a positive for building materials stocks. 'Orient Securities' report clearly pointed out.
The extent to which building materials go to rural areas can stimulate new demand in rural areas. This is the focus of market participants. He Zhengsong, a building materials dealer from Jingmen, Hubei, calculated a bill: A new house in the rural area needs 30 to 40 tons of cement, and one ton of cement is calculated at 300 yuan. Building farmers can save about 1,500 yuan. 'It should be said that the money is still considerable, but it is less than the cost of building more than 100,000 yuan. Building a house is a major event for farmers throughout their lives. Spending less money will not inspire them to build new houses. 'He Zhengsong judged.
Chang Jiang Securities researcher Zou Ge also analyzed that at present, the proportion of cement consumption in China's rural areas accounts for about 30% of the country, which is mainly rural infrastructure, this part of the pilot work did not involve. The proportion of cement used in rural housing construction is actually less than 10%. According to this measure, cement demand from building materials to the countryside will form a new growth point of 1% 3%, which will have limited improvement in the fundamentals of the industry.
Although the pull effect is not significant, Zou Ge believes that this policy is an important catalyst for the stock price of listed companies. According to statistics, in August the fixed investment in China's cement industry was the first 'negative growth' this year, which means that the supply will be effectively controlled next year. At the same time, the state's vigorously promoted merger and reorganization policy in the cement industry will also benefit large cement companies and listed companies. In this case, any improvement in the demand side is to increase the bargaining power for the industry's upward trend.
New building materials such as gypsum board, plastic steel doors and windows, or indeed beneficiaries, actually, the expectation of the industry for building materials to the countryside is far more than the cement product of this pilot project. The pilot points out that it is necessary to actively explore the possibility of energy-saving, earthquake-resistant and other building materials going to the countryside. Market participants also suggested that the future coverage of building materials to the countryside should be further expanded. In addition to the traditional cement, glass and ceramics, it can also include new types of building materials such as plasterboard and plastic steel doors and windows.
The promotion of building materials to the countryside is not only a means of boosting domestic demand but also a good opportunity to promote new building materials. 'Qin Zhanxue said. According to the opinions of the China Building Materials Circulation Association, there are three thresholds for entry of building materials to the countryside: first, we must meet the national standards; second, we must meet the environmental standards and issue the 'green product logo'; and third, the short-listed companies need There is a larger capacity scale.
He Zhengsong said that cement, glass, and ceramics are the basic materials for building a house, and subsidies will not be used by farmers. The gypsum board, plastic steel doors and windows are different, the gypsum board can do ceiling, make the house look more beautiful, but at present there is not much used in rural areas. The performance of plastic doors and windows is better than that of aluminum alloys, and the prices of the two are similar. If subsidies are implemented, it will accelerate the promotion and application in rural areas.
Available without building materials products, the demand has greater flexibility. At present, the market capacity of new building materials is still relatively small, and is still in the process of market development. The policy of building materials to the countryside will accelerate its growth rate. 'A brokerage firm pointed out that, unlike cement, glass and other industries, new types of building materials involved relatively few stocks, resources are relatively scarce, and their share prices are also more susceptible to policy incentives.