When it comes to the construction industry, it is inevitable to be associated with the dusty construction site. However, rebar, cement, and scaffolding, the familiar words in the traditional construction industry, have gradually drifted away, and today’s traditional buildings are undergoing a comprehensive transformation into prefabricated buildings.
Different from traditional construction methods, prefabricated buildings will assemble a large number of prefabricated components at the factory link. The construction process is similar to “building blocks”, and construction work will be completed by building prefabricated components. The advantage of this construction method is that it can improve the quality of the project, shorten the construction period, and also reduce environmental pollution.
After years of intensive cultivation, Broad Living, which was established in 2006, has developed into China’s largest PC component manufacturer and PC production equipment manufacturer, occupying market shares of 13.0% and 38.3%, respectively. Its business involves the midstream and upstream of the industry and is in the leading position in the industry .
The domestic assembly and construction market is still a blue ocean
Favorable policies promote the rapid growth of assembly buildings. The “Thirteenth Five-Year Plan” Prefabricated Building Action Plan launched by the Ministry of Housing and Urban-Rural Development of China in February 2017 clearly stated that by 2020, the proportion of prefabricated buildings in the country will exceed 15% of new buildings and 30% by 2025. Following it is another trillion-level market. According to estimates by the Institute of Foresight Industry, it is estimated that by 2025, the scale of China’s fabricated building market will reach more than 1.5 trillion yuan.
According to the data, Broad Living Group mainly provides overall solutions for China’s construction industrialization, including globalization, large-scale, professional and intelligent prefabricated building manufacturing and services. Its business scope mainly focuses on three major sections, namely PC component manufacturing, PC production equipment manufacturing and construction general contracting. As of the end of April 2019, revenue from PC component manufacturing and PC production equipment manufacturing business accounted for 88% of the total revenue during the period.
Relying on the first-class manufacturing capabilities of prefabricated buildings, Yuanda Living Industry opened the door to the capital market, officially listed on the Hong Kong Stock Exchange on November 6, and obtained over-subscription. The issue price is HK $ 9.68 per share, about 122 million shares are sold, and the raised funds do not exceed HK $ 1,521 million. The funds are mainly used to develop the PC component manufacturing business and intelligent equipment business.
According to the prospectus, as of April 30, 2019, Broad Living has 15 wholly-owned PC factories and has contracted to invest in 85 joint factories. Covering 100% of China’s cities with GDP exceeding 1 trillion yuan in 2018 and 65% of cities with GDP exceeding 100 billion yuan in 2018.
In addition to policy blessings and the industry’s leading position, the steady growth of Broad Life has also strengthened investor confidence. The prospectus shows that the revenue of Broad Living has shown a steady growth trend in the past three years. From 2016 to 2018, Broad Living has achieved a compound annual growth rate of 16.5%; a gross profit compound annual growth rate of 9.7%; and an annual profit of 198 million yuan. , 168 million yuan 466 million yuan.
Technology helps modernize the construction industry
Nowadays, the construction industry is being optimized and upgraded under the promotion of digitalization. Broad Living is keeping up with the development trend. It is building a digital system covering the entire construction industry chain and is committed to achieving digital design, digital factories and digital construction sites.
According to Zhang Jian, Chairman of Broad Life, “Broad Life is committed to digitally defining the construction industry chain, replacing people with machines, building houses like cars, and upgrading manual, discrete traditional construction industries to intensive, Efficient modern manufacturing. ”
Broad Living has exported and implemented the concept of building modernization. It is understood that the current all-round cooperation targets of Broad Living include real estate developers, builders, design institutes and government platform companies, among which Vanke, Country Garden, China Construction, China Academy of Building Research, Shaanxi Energy Group, etc. are influential Businesses and institutions.
Zhongtai International said that PC component business revenue of Broad Living is expected to continue to grow in the next few years. Broad Living has the largest market share in the country, and has a complete technical system, brand premium and customer advantages. It has a solid market leadership position and a clear future competitive advantage.
Broad Living has achieved a leapfrog development with a steady and steady attitude, standing on the guise of modernization of the construction industry, while helping the traditional construction industry to take on a new look, and has become an important force to promote the real economy to high-quality development.
Talking about the development plan for the next five years, Tang Fen, Executive Director and General Manager of Broad Living, stated that the penetration rate of prefabricated buildings in the Chinese market is less than 5%, while Germany has reached 32%, Northern Europe has more than 40%, and Singapore has more than 70%. The future development space is huge.
In the future, Broad Living will continue to cultivate the domestic market. It is expected that 67 joint factories will be established, covering 66 cities with a GDP of more than 100 billion yuan. In addition, Broad Living will expand its journey overseas, and 20% of the funds raised from the IPO will also be used to open up overseas markets and establish technology and production centers for overseas markets. At the same time, it will decide whether to open a factory overseas according to the development of the overseas market.
It is understood that Broad’s overseas development strategy “divide into two roads”: to promote and export fully-assembled villa products to some developed countries and regions in Europe, North America and the Persian Gulf; all the way to countries along the “Belt and Road” And other developing countries, exporting a complete set of prefabricated building products and construction management, technology, equipment and services to develop social housing.
According to Tang Fen, in the future, the Broad Labor Union will continue to focus on five major strategies, namely, continue to invest in PC factories, upgrade digital platforms, continue to focus on strategic customers, continue to implement the “Broad Alliance” plan to expand overseas markets.