Analysis of the market status and development prospect of China's paint industry in 2020

Analysis of the market status and development prospect of China's paint industry in 2020

1. Industry chain analysis of coatings industry

The upstream industry of coatings industry includes the manufacturing of chemical raw materials such as resins, solvents, pigments, fillers and additives, while the upstream industry of chemical raw materials such as resins and solvents is the petrochemical industry. The downstream of the coating industry is mainly construction, furniture, automobile, home appliances and other production enterprises and home decoration market.

The impact of upstream raw materials on the industry is mainly reflected in two aspects: first, the stability of production scale affects the stability of raw material supply in the coating industry; Second, the price of raw materials affects the production cost of coatings. The influence of downstream product market on coatings industry is mainly reflected in the market scale and development trend of coatings.

2. China's coating production exceeds 24 million tons

In recent years, the output and operating rate of coatings in China have risen, and the market development potential is great. In terms of supply, from 2014 to 2019, the output of China's coatings industry increased year by year, reaching 24.388 million tons in 2019, a slight increase compared with 2018, with a year-on-year growth of 2.60%; The compound annual growth rate is 9.27%.

3. Analysis on the market competition pattern of Chinese Coatings Industry

There are many enterprises participating in the market competition in the coating industry, and the industry competition is fierce. Under the full market competition, the market share of the industry gradually concentrates to the well-known brand enterprises, and presents a more obvious echelon level.

The first echelon of enterprises: covering the coating industry products, in the field of functional coatings and special coatings has a strong leading position, such as PPG, Xuanwei, Nippon, AkzoNobel and other multinational coating groups.

Second echelon Enterprises: they have strong competitive advantages in some sub sectors of the coating industry, such as Jiabaoli, sankeshu, ashchuang energy, China Resources Coatings, Dongfang Yuhong and so on. Among them, sankeshu's wall coatings has strong competitive advantages, ranking among the top 10 global coatings listed companies in 2020.

Third echelon Enterprises: they make profits by producing products with low quality and low price. They are at a disadvantage in terms of technical strength, production scale, R & D, etc., and their competitiveness is weak; A large number of domestic small coating production enterprises are in the third echelon.

4. Performance analysis of domestic coatings listed companies in China

In the first half of 2020, Dongfang Yuhong has the highest business income among Chinese local coating listed enterprises, reaching 8.783 billion yuan, far ahead of other enterprises; Next were Keshun and sankeshu, with an operating income of 2.659 billion yuan and 2.595 billion yuan respectively.

In the first half of 2020, among the top 5 revenue of China's local coating listed enterprises, Keshun's revenue increased the most year-on-year, reaching 34.70%; However, China Electric research achieved negative growth, with an operating revenue of 1.086 billion yuan in the first half of the year, a year-on-year decrease of 21.76%.

In the first half of 2020, the trend of net profit of coating listed companies is basically consistent with the operating revenue, and the top three are Dongfang Yuhong, Keshun and China Electric Research Group, with net profit of 1.097 billion yuan, 290 million yuan and 129 million yuan respectively. In the first half of the year, ashchuang energy achieved a net profit of 111 million yuan, ranking fourth, while FeiKai materials achieved a net profit of 110 million yuan, slightly exceeding the 109 million yuan of three trees, ranking fifth.

5. Analysis on the development prospect of Chinese Coatings Industry

The 13th five year plan of China's coatings industry points out that the total economic output of the whole industry has maintained a steady growth during the 13th Five Year Plan period, with an average annual growth rate of about 6.5% due to the demand of industry and civil. By 2023, the total output value of the coatings industry is expected to grow to about 690 billion yuan; Based on an average annual growth rate of 5%, the total output of coatings industry is expected to increase to 27 million tons by 2020.

Considering that the growth rate of China's coating production in 2019 is only 2.60%, and the continuous impact of the new coronavirus pneumonia epidemic in 2020 will greatly affect the plant operation rate, it is expected that the annual coating production will drop to about 23 million tons in 2020. In the future, China's coating production will grow at a compound growth rate of 2.6%. By 2025, China's coating production will be close to 27 million tons.