The production of coating reaches 8.3949 million tons! Paint market in the first half of 2018

According to the national bureau of statistics, in the first half of 2018, the paint output of enterprises above the national scale reached 8.3949 million tons, up 0.6% year-on-year. The three provinces and cities with the highest cumulative output from January to June were guangdong province with 1.7647 million tons, down 4.9% year-on-year. Shanghai 9844 thousand tons, down 12.1% year on year. Jiangsu 9727,000 tons, down 2.0 percent year-on-year.

I. development of external environment for China's coating industry in the first half of 2018

According to preliminary calculation, the gross domestic product of the first half of 2018 reached 4,1896.1 billion yuan, up 6.8% year on year at comparable prices. The added value of the primary industry was 2208.7 billion yuan, up 3.2 percent year-on-year. The added value of the secondary industry was 169.99 billion yuan, up by 6.1%. The added value of the tertiary industry was 2,275.76 billion yuan, up 7.6 percent.

From January to June, 2018, industrial enterprises above the national scale achieved the main business revenue of 52.1 trillion yuan, up by 9.9% year-on-year. Main business cost: 44 trillion yuan, up by 9.5%; Operating profit margin was 6.51%, up 0.41 percentage points year-on-year. Industrial enterprises above the designated size achieved a total profit of 3,388.21 billion yuan, up 17.2 percent year-on-year.

II. Development situation of the upstream of the paint industry in the first half of 2018

In terms of raw materials, the price of some chemical raw materials continued the rise in 2017 in 2018, and the bulk raw materials, such as titanium dioxide, TDI/MDI, n-butanol, epoxy resin, etc., remained high.

The cost of paint raw materials has become an important factor restricting the development of the industry. In addition, in the first half of 2017-2018, the continuous interest rate hikes by the federal reserve led to the intensified depreciation of RMB; In the name of the 301 investigation, the United States increased tariffs on China, the European Union and other economies, which ultimately led to the challenge of multilateral trade. The increase of tariffs directly affected the export rate of machinery, automobile, toys, furniture and other industries, and indirectly affected the output of the paint and pigment industry.

III. Development situation of the downstream of coating industry in the first half of 2018

Real estate industry

Real estate policy regulation entered a new phase in the first half of 2018. On the one hand continue to actively restrain irrational demand, on the other hand to adjust medium - and long-term supply structure. By the end of June, more than 50 cities above the prefectural level and more than 10 counties and cities had issued regulation policies.

In the first half of 2018, various regions continued to increase land supply and the introduction of residential land maintained a growth rate of more than 30 percent. Among them, third-and fourth-tier cities increased land introduction in the context of good sales of the real estate market last year and promoted the largest year-on-year growth in all cities. In terms of transaction volume, the transaction volume of residential land continues to increase nationwide. Influenced by factors such as supply land structure and restriction of land purchase policies, real estate enterprises are more cautious in land acquisition in first-tier cities, and the land transaction growth rate in first-tier cities is relatively low. Second, third and fourth tier cities become the hot spot for enterprises to get land, and from the first half of this year high land prices, high price transactions are also gradually to second, third and fourth tier cities drift.

The furniture industry

In the first half of 2018, the number of furniture manufacturing enterprises in China increased to 6,217, of which 958 lost money, with a loss surface of 15.4% and a total loss of 2.06 billion yuan.

In the first half of 2018, enterprises larger than the scale of China's furniture industry achieved the revenue of 392.76 billion yuan, up 7% year on year, reaching 43.37% of the annual revenue of 2017. In the first half of the year, the profit of China's furniture industry reached 22.3 billion yuan, down 6.1% from the same period last year. In the first half of the year, the gross profit rate of the furniture industry was 15.3% and the profit rate was 5.7%. In the first half of 2018, the retail value of furniture products in China was 105.32 billion yuan, up by 10.1%.

According to the forecast, China's furniture consumption will continue to maintain a long-term trend in 2018, and it is estimated that China's furniture retail sales will exceed 300 billion yuan in 2018.

The car industry

From January to June, 2018, automobile production and sales maintained a stable growth. Compared with January to may, the growth rate of output was improved and the growth rate of sales was slightly reduced. Compared with the same period of last year, the growth rate of output slowed down, while the growth rate of sales increased slightly, which was slightly higher than the association's expectation at the beginning of the year.

From January to June 2018, the automobile production and sales volume reached 14058 million and 14066 million respectively. The production and sales volume increased by 4.2% and 5.6%, respectively, compared with the same period last year. The sales growth rate was 1.8 percentage points higher than the same period last year, and the overall performance was better than expected at the beginning of the year.

Shipping industry

In the first half of 2018, the number of new ship orders in China increased significantly compared to the same period last year, the number of shipbuilding completed decreased, and the number of handheld ship orders recovered. Difficulties in financing, delivery and profitability remain, and the steady and healthy development of the shipbuilding industry is still faced with major challenges.

In the first half of 2018, national shipbuilding completed 18.6 million deadweight tons, down 28.9 percent year-on-year. New ship orders 22.7 million deadweight tons, up 97.2 percent year on year.

The economic benefits of the shipping industry declined year-on-year. From January to may, 1,210 shipbuilding enterprises above the national scale achieved the main business revenue of 1943 billion yuan, down 2.6% year-on-year.

Iv. Development of some enterprises in the coating industry in 2018

According to the data of China coating industry association, the total profit of the whole industry from January to April 2018 was 6.301 billion yuan, up by 2.9% compared with the same period of 2017, and the profit margin of the whole industry was about 5.95%. The rate of profit margin growth in the january-april period was -2.2%, 6.69 percentage points lower than the level in the same period of 2017, and 6.83 percentage points higher than that in the january-march period. The main reason for the reduction of profit margin is that the pressure of environmental protection makes the cost of environmental protection investment and management increase greatly. Bulk raw material price rise, paint enterprise profit rate decreases.

Development situation of some listed enterprises in coating industry is as follows:

Xuanwei achieved net sales of $8.738 billion in the first half, up 34.5% year-on-year. Net sustainable operating income was $653 million, up 8.9 percent year on year. The increase in visa sales as of May 2018 added 28.5 percent to xuanwei's net sales in the first half.

Akzo Nobel achieved sales of 4.622 billion euros in the first half, down 6% year on year. Adjusted operating income of 374 million euros, down 25 percent year on year; Net sustainable operating income was 226 million euros, down 22 percent year-on-year.

PPG achieved net sales of $7.912 billion in the first half, up 8.53 percent year on year. Net income was $705 million, down 15.37 percent year on year. In the first half of the year, the high-performance coating division achieved sales of $4.658 billion, up 7.34% year on year. Net revenue was $708 million, down 2.68 percent year over year. In the first half of the year, the sales volume of industrial coatings department reached $32.54 billion, up 8.6% year on year. Net income was $462 million, down 14.44 percent year over year.

The company achieved net sales of $2.372 billion in the first half, up 13.16 percent year on year. Net income was $148 million, up 215% year on year. Adjusted EBITDA of $467 million, up 8.6 percent year over year.

In the first half of 2018, the performance of feilu shares is expected to rise in the same direction. The net profit attributable to the shareholders of the listed company is 5% to 20% higher than that of the previous year, and the profit is expected to be 9,740,500 yuan to 1,113.20 million yuan (the profit of the previous year is 9.2767 million yuan).

Jinlitai expects the performance of the first half of 2018 to decline in the same direction, and the net profit attributable to the shareholders of the listed company will change from the previous year: -80% to 50%, and the profit will be 5.2055 million yuan to 1,301.03 million yuan. (earnings were 2,602,600 yuan a year earlier).

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summary

Time is running out, and 2018 is almost over. Throughout the first half of 2018, the overall economic situation in China has been improving, the industrial economic structure has been improved, and the paint industry has made steady progress. At the same time, the international environment is complex and changeful, the opportunity and the challenge coexist, the environmental protection situation is severe, coating and the upstream and downstream enterprises present the dilemma of more production halts and difficult production resumption. Under the constant pressure of raw materials, many coating enterprises also squeeze profits through technological progress, management enhancement, efficiency improvement, energy saving and consumption reduction. With the development of the industry, environmental protection, green and innovation become the characteristics of the operation of the coating industry, and active environmental protection and green development become the consensus of the industry.