Building material companies produce sand, gravel, flat glass, cement, concrete, bricks, etc.
By the end of 2016, there had been over 100,000 building material companies. In 2016, fixed asset investment in the building material industry was CNY 1,686.9 billion, up by 0.7% YOY. Revenues of the industry reached CNY 6,186.27 billion, up by 5.4% YOY. During the year, the production volume of cement was 2,402.95 million tons, up by 2.5% YOY; that of commercial concrete was 1,792 million m3, up by 7.4% YOY; that of flat glass was 774.03 million weight cases, up by 5.8% YOY.
The operation status of the building material industry is closely related to fixed asset investment. In 2016, total fixed asset investment in China (excluding farming) was CNY 59,650.1 billion, increasing by 8.1% YOY. This included CNY 10,258.1 billion in property development, a 6.9% increase YOY. Property under construction totaled to 7,589.75 million m3, increasing by 3.2% YOY. Newly started projects were 1,669.28 million m3, up by 8.1% YOY.
From 2017 to 2021, the production of 32.5 compound cement will be gradually ceased. The proportion of high-grade cement and pure silicate cement will be higher. The production volume of cement in China will reduce and the composition of cement products will be changed. The only thing that will keep stable is cement clinker. Development Plan for China Building Material Industry (2016-2020) stated that by the end of 2020, cement clinker and flat glass projects to expand production capacity would be prohibited from being filed or built in China. In the expansion of emerging building material industries, the key is to accelerate the development of advanced inorganic fiber and compound materials and to encourage the development of cutting-edge materials such as graphene.
CRI expects that fixed asset investment will continue to grow in the coming years, benefitting the development of the building material industry.
In this report, CRI analyzes 41 building material manufacturers listed in A-share market in China.
The report is composed of two parts: the first part is enterprise profiles and the second part is the operation status of these enterprises in the recent decade (presently 2006 to 2016, we will update it to the latest as time goes by).
The operation status is demonstrated from the following perspectives: (1)financial indexes, such as earnings per share, book value per share (BPS), sales per share, net cash flow per share, return on net worth and debt to asset ratio; (2) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (3) indexes on the income statement, such as revenue, operating profit, net profit and EBIT; (4) indexes on the balance sheet, such as liquid asset, fixed asset, current liability, non-current liability, capital reserve and shareholders’ equity.

(1) Financial Indexes

  • Earnings per Share
  • Book Value per Share (BPS)
  • Sales per Share (SPS)
  • Net Cash Flow per Share from Operations
  • Net Cash Flow per Share (CNY)
  • Return on Net Worth
  • Net Profit Margin on Total Assets
  • Return on Invested Capital (ROIC) (%)
  • Gross Profit Margin on Sales (%)
  • Net Profit Margin on Sales (%)
  • EBIT Margin (%)
  • EBITDA Margin (%)
  • Debt to Asset Ratio (%)
  • Total Asset Turnover (times)
  • Cash/Operating Income Received from Sales of Goods or Services
  • YOY Growth Rate of Operating Revenue (%)
  • YOY Growth Rate of Operating Profit (%)
  • YOY Growth Rate of Net Profit Attributable to Shareholders of Parent Company (%)

(2) Summary of Income Statement

  • Gross Revenue (CNY, million)
  • Total Operating Costs (CNY, million)
  • Revenue (CNY, million)
  • Operating Profit (CNY, million)
  • Total Profit (CNY, million)
  • Net Profit (CNY, million)
  • Net Profit Attributable to Shareholders of Parent Company (CNY, million)
  • Non-recurring Items (CNY, million)
  • Net Profit Deducting Non-recurring Items (CNY, million)
  • R&D Costs (CNY, million)
  • Earnings Before Interest and Tax (EBIT) (CNY, million)
  • Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (CNY, million)

(3) Summary of Balance Sheet

  • Liquid Asset (CNY, million)
  • Fixed Asset (CNY, million)
  • Long-term Equity Investment
  • Total Assets (CNY, million)
  • Liquid Liability (CNY, million)
  • Non-current Liability (CNY, million)
  • Total Liability (CNY, million)
  • Capital Reserve (CNY, million)
  • Surplus Reserve (CNY, million)
  • Undistributed Profit (CNY, million)
  • Shareholders’ Equity (CNY, million)
  • Equity Attributable to Shareholders of Parent Company (CNY, million)

(4) Summary of Cash Flow Statement

  • Cash Received from Sales of Goods and Services (CNY, million)
  • Cash Flow from Operations (CNY, million)
  • Cash Paid to Purchase Fixed Assets, Intangible Assets and Other Long-term Assets (CNY, million)
  • Cash Paid for Investments (CNY, million)
  • Cash Flow from Investments (CNY, million)
  • Cash Received from Investors (CNY, million)
  • Cash Received from Borrowings (CNY, million)
  • Cash Flow from Financing (CNY, million)
  • Net Increase of Cash and Cash Equivalents (CNY, million)
  • Cash and Cash Equivalents, End of Period (CNY, million)
  • Depreciation and Amortization (CNY, million)