Securities code: 002372 securities abbreviation: Zhejiang Weixing New Building Materials Co.Ltd(002372)
Zhejiang Weixing New Building Materials Co.Ltd(002372) record of investor relations activities
No.: 2022-004
□ specific object research □ analyst meeting
Investor relations activities □ media interview □ performance briefing
Other □ press conference □ Roadshow
□ site visit √ others: teleconference
MORGAN STANLEY：Albert Cui； ASPEX MANAGEMENT：Key Yin； EURIZON CAPITAL： Andrew Lee； OXBOW CAPITAL MANAGEMENT：Max Chua； PRIVATE INVESTOR 815：Scott Liu； SUMITOMO MITSUI DS AM：Joseph Ho； TENG YUE PARTNERS：Shan Yang； ALLIANZ GLOBAL INVESTORS：Catherine Chan； LIBRARY RESEARCH：Charles Jin； TORQ CAPITAL MANAGEMENT：Nick Li； WARD FERRY MANAGEMENT：Iris Wang； Everbright Securities Company Limited(601788) : Sun Weifeng, Chen Qifan; Wells Fargo Fund: Zhao Chenyang; ChuangJin Hexin: Li Han; Ping An assets: Zhang Hui, Yan Peng; Shang Shi Investment: LV Weizhi; Qianhai life insurance: Lin Hai; Yimao group: Xiao Lin; AXA Puyin Fund: Wang Shuang, Chen Chen; Everyone’s assets: Shi Taihua; Yuanda Securities Trust: Sun Xinming; Danshui spring Investment: Lin Shenglan; Shengyu Fund: Liu Li; Asset management of Minsheng Bank: Wang Lu; Industrial Fund: Chen Xu; China Life Insurance Company Limited(601628) : Hechuan; Oriental alpha Fund: Pan Lingzi; Name of the participant and its owner Guosen Securities Co.Ltd(002736) : Zhang Yao; Xinhua Fund: Zhou Xiaodong; Schroeder Investment: Chen Jianji; Jiutai Fund: Zhao Wanyuan Name: long; Qianhai Kaiyuan: Zheng Han; SAIC Qizhen: Shen Yiwen; Qianhai: Zhang Dong; Donghai Fund: Yang Hong; People’s livelihood and benefits: Luo Dan; GF Fund: Yao tierui; Ordinary investment: Jiang Heze; Gf Securities Co.Ltd(000776) : Xie Lu, Zhang Qian; Fubang Securities Trust: Zhu Jiaxuan; Yin Sheng asset management: Wang Qing; Qingrong asset management: He Hui; Camel bell asset management: Zhao Ruoran; China Securities Co.Ltd(601066) Fund: Zhang Rui; Miyuan Investment: Jian Jia; Dehua venture capital: Du Bo; Everbright Securities Company Limited(601788) asset management: Xiao Yisheng; Dacheng Fund: Ma Yueyang; Huayi Yongxing asset management: Liao Jingxiang; Jinglifeng Investment: Peng shaokai; Haitong Securities: Tang Xudong; Qianhai Junyuan Fund: Li Zhuo; Haichen Investment: Yang Yang; Cinda Aoyin Fund: Zou Yun; FUH Hwa site asset management: Lin Ruiting; Guoshou Security Fund: Li Jie; Oriental Fund: Cao Junpeng; Qingtian puriming Investment: Yang Wenjing; Kai state Yifang Investment: Li Yijun; Taji asset management: Wang Lili; China Securities Co.Ltd(601066) Securities: Su Xiaojie; Industrial Bank Co.Ltd(601166) : Chen Yalong; Tianyu Investment: Xiao Jianzhong; Shangya Investment: Chen Tianchi; Taikang asset management: Cao Ling; Yingfeng capital: Zhang Tingjian et al.
Time: January 13, 2022
Location company
Names of receptionists of listed companies such as Tan Mei
1. What is the payment collection of the company’s construction engineering business?
A: the company’s construction business remittance is in good condition. On the one hand, due to the principle of “seeking progress in stability and risk control first”, customers and projects are preferred, and the quality of customers and projects is good; On the other hand, most of the company’s construction engineering business is operated through dealers, and the return of accounts receivable is fast, which is basically controlled within three months. 2. Why does the company promote the “system integration + service” mode?
A: This is not only the need of market competition, but also the choice of customer needs. At the same time, because the company has profound accumulation and sufficient experience in product quality and serialization, system integration design ability and service landing ability, the “system integration + service” mode can further enhance the company’s competitive advantage. Therefore, We hope to innovate and upgrade our business model and build a wider moat.
3. Please introduce the company’s product types and application fields?
A: the company’s products are mainly plastic pipe products, which are divided into three series: first, PPR series pipe fittings, which are mainly used for cold and hot water supply in buildings; Second, PE series pipe fittings are mainly used in municipal water supply and drainage, gas, heating and other fields; Third, PVC series pipe fittings are mainly used in drainage, power sheath and other fields. Investor relations activity main 4. What is the application proportion of the company’s retail business in new houses and second-hand houses?
A: the specific proportion of different regional markets is different.
At present, the proportion of second-hand houses in first and second tier cities has gradually increased; Other cities, especially those with rapid expansion, are still dominated by new houses.
5. How does the company view the improvement of industry concentration?
A: we believe that the improvement of the concentration of the plastic pipeline industry is the inevitable result of market competition. For many small enterprises, the living environment has become more and more difficult in recent years. For retail business, more and more focus on the competition of brand enterprises. Some small enterprises have no competitive advantages such as brand, channel and service, so it is difficult to survive in the market; For engineering business, customers’ requirements are higher and higher. At the same time, problems such as accounts receivable lead to further increase the capital pressure of small enterprises with insufficient capital strength, resulting in the concentration of engineering business to medium and large brand enterprises with strong strength. 6. What are the changes of the company’s retail channels?
A: at present, the retail sales channel of the company is still home decoration company, water electrician foreman and owner. However, its proportion continues to change. The proportion of home decoration companies in the first and second tier cities has increased rapidly. In other regions, it is still dominated by water electrician foremen and owners’ self purchase.
7. Looking back three to five years, how will the company’s retail business achieve sustained growth?
A: in the next three to five years, the company’s retail business will grow mainly by increasing market share and expanding categories,
On the one hand, strengthen the expansion in blank and weak markets and increase the network density. At the same time, accelerate the sinking of channels in mature markets and continuously improve the market share; On the other hand, we will strengthen the implementation of the concentric circle strategy, accelerate the market expansion of new categories such as waterproof and water purification, and improve the average household volume, so as to ensure the sustainable and steady development of the company’s retail business.
8. How much impact will the construction of underground pipe network and water conservancy facilities proposed by the government have on the company’s business?
A: Recently, the central economic work conference raised the construction of underground pipe network and water conservancy facilities to a certain height, and local governments also attach great importance to it. Among them, the laying of underground pipe network will involve water supply and drainage pipes, gas pipes, heat pipes and other pipelines, which will have a positive impact on the expansion of the company’s municipal engineering business. Plastic pipes are rarely used in the construction of water conservancy facilities, such as the South-to-North Water Transfer Project, but a large number of plastic pipes may be used in the construction of its branch network. The company’s municipal engineering business will also actively pay attention to and actively develop this business.
9. What is the change trend of the company’s retail business in the fourth quarter of 2021?
A: the company’s retail business operation was normal in the fourth quarter of 2021, basically continuing the steady development trend in the third quarter.
10. What is the trend of plastic pipes replacing other pipes?
A: plastic pipes have the performance characteristics of environmental protection, energy saving, sanitation and good flexibility. The trend of “replacing steel with plastic” is very obvious. Especially with the continuous progress of its application technology and material properties, the application field of plastic pipes has been further expanded. In the future, the application proportion of gas, heating, heating, communication, chemical industry, electric power, ocean, oil field and other fields will continue to increase.
11. What is the layout of the company’s waterproof business?
A: the product series of the company’s waterproof business has been relatively complete, and the business model is basically mature. It is promoted nationwide through the “product + service” model. At present, the market is expanding well.
12. What is the future capacity planning of the company?
A: the company follows the principle of “determining production by sales”. At present, the new capacity of the company mainly comes from the expansion and intelligent transformation of the existing production base. In the future, the production base will be further expanded according to the market expansion plan.
13. What about the company’s overseas production base?
A: affected by the epidemic situation abroad, the company’s production capacity in Thailand Industrial Park is small at present, and will gradually expand according to the market demand in the future.
14. Please look forward to the price increase space of products in 2022?
A: the company’s product pricing mainly adopts the cost plus method, and the gross profit margin is affected by its fluctuation. Among them, the price system of retail products is relatively stable. If the cost side fluctuates greatly, the company will comprehensively consider various factors and adjust the product price appropriately; The prices of engineering products follow the market and are priced according to the order.
15. What is the price of the company’s raw materials in the fourth quarter of 2021?
A: in the fourth quarter of 2021, the price of raw materials decreased month on month, and still increased year on year in 2020, showing a high and volatile trend on the whole. Among them, PPR and PE are relatively stable, while PVC has dropped but is still at a high level.
16. What are the current number of distributors and outlets of the company?
A: at present, the company has more than 1000 first-class dealers and more than 29000 marketing outlets, with a net increase of 1000-2000 every year.
17. What are the competitive advantages of the company’s waterproof business?
A: at present, the company’s waterproof business is positioned in the home decoration waterproof market, mainly targeting international first-class brands. Its core competitive advantages are as follows: first, the company’s products are positioned as high-end and excellent quality; Second, the company is deeply engaged in the home decoration market and has a better understanding of the needs and pain points of customers. “Product + service” can better solve the worries of consumers; Third, the waterproof business belongs to the next process of pipeline installation, which can rely on the distribution channel and sales channel of pipeline business to carry out business and realize resource sharing.
Annex list (if any) none
Date: January 13, 2022
