New urbanization promotes new building materials to meet high growth

Urban urbanization will promote the restructuring of infrastructure investment. The rate of urbanization in China exceeded 50% for the first time in 2011, but it is still in an accelerated period of development. We expect that with the deepening of urbanization, the growth rate of FAI will remain stable in the future. At the same time, taking into account the prominent contradictions in the dual structure and weak agglomeration capabilities of small and medium-sized cities, the development of urbanization based on core cities will become the mainstream of the future. This change will become the driving force for the transformation of the investment structure of the building materials industry. .

New urban building materials: The first year of transition will appear. Throughout the world, in the early period of accelerated urbanization rate of 30-50%, the proportion of infrastructure investment has shown a rapid upward trend, and when the urbanization rate has increased to more than 50%, the proportion of infrastructure investment growth has begun to stabilize. Judging from the development history of Japan and South Korea, with the increase of urbanization rate to a certain level, the infrastructure investment structure will gradually shift from traditional building materials to urban supporting new building materials. In addition, from the development history of the international building materials giant for its new building materials business, we also found that Lafarge, Saint-Gobain’s expansion of its new building materials business and its new construction are mainly concentrated in countries where the urbanization rate is higher than 60%. Therefore, we believe that in the new urbanization process in the future, the industries such as enamel upright panels, gypsum board, waterproof coatings, and water supply and drainage pipe network systems will become important directions for future investment restructuring.