The scale of water reducing agent industry is 27.4 billion yuan, and the third generation water reducing agent accounts for a high proportion. In 2020, the sales volume of concrete admixtures in China was 16.94 million tons and the industry scale was 41.1 billion yuan, of which the sales volume of water reducing agent accounted for 66.7% and the industry scale was 27.4 billion yuan. The water reducing agent has experienced the evolution from the first generation of ordinary water reducing agent to the third generation of high-performance water reducing agent, and the proportion of the first / second / third generation water reducing agent is 0.9/21.4/77.7%. By adding water reducing agent to concrete, the workability of concrete can be improved, the strength can be improved and the amount of cement can be reduced.
Small and medium-sized production capacity withdrew and industry concentration increased. The production of water reducing agent includes synthesis and compounding links. The synthesis link determines the product performance, and the compounding link reflects the comprehensive effect of the product. There are a large number of small enterprises in the industry that only do compounding links. Restricted by the product transportation radius, small enterprises occupy a large share in the regional market. With the incorporation of water reducing agent into the management of chemical industry, environmental protection and safety production policies have led to the elimination of a large number of small and medium-sized enterprises, and the industry concentration has increased significantly. From 2016 to 2020, the number of enterprises decreased from 6000 to 1000, and CR3 and CR10 increased by 8.99 and 4.53 percentage points.
The increase in the proportion of mixed sand manufacturers and policies in the industry stems from the increase in the proportion of mixed sand manufacturers and beta. The downstream of water reducing agent is infrastructure and real estate, and the steady growth policy is expected to drive the recovery of demand. As the state strengthens river regulation, the proportion of manufactured sand increases, and the demand for water reducing agent and supporting services increase. At present, the ready mixing rate of concrete in China is only 46%, far lower than the level of 80% in developed countries. The improvement of commercial mixing rate will drive the expansion of industry scale.
Industry alpha comes from leading production expansion, category expansion and customer certification. The upstream and downstream of water reducing agent enterprises are strong customers, resulting in long turnover days of accounts receivable and short turnover days of accounts payable, which is a test of the financial strength of enterprises. The qualification certification of downstream customers increases the industry access threshold. With the help of the capital market, leading enterprises expanded financing channels and raised funds to expand production, and the production capacity growth of the three listed companies far exceeded that of their competitors. Due to the direct selling mode adopted by the industry and the high overlap of customers, Sobute New Materials Co.Ltd(603916) has been involved in testing, functional materials and waterproof on the basis of water reducing agent.
Sobute New Materials Co.Ltd(603916) comprehensive competitive strength is better Sobute New Materials Co.Ltd(603916) is the only enterprise with polyether mother liquor compounding capacity in the industry. The company realizes the national layout through four mother liquor production bases. With Shenzhen Institute Of Building Research Co.Ltd(300675) background and strong R & D strength, the company has made rapid progress in functional materials and testing business. From the perspective of industrial chain layout, capacity distribution, R & D strength and profitability, Sobute New Materials Co.Ltd(603916) comprehensive competitive strength is better.
"Buy" rating is given to the water reducing agent industry, with key recommendations: Sobute New Materials Co.Ltd(603916) , Lets Holdings Group Co.Ltd(002398) , Guangdong Redwall New Materials Co.Ltd(002809) .
Risk tip: the strength of steady growth policy is lower than expected; The prices of ethylene oxide and industrial naphthalene in the upstream rose sharply; Adverse impact of environmental protection and safety production policies on output.
