It is reported that 12th five year programming for construction industry was officially issued by Ministry of Housing and Urban-rural Development on August 18.
The pivotal position of construction industry must be solidified during next 5 years. Both the domestic output and added value are expected to witness growth more than 15%. Besides, the core competitiveness of large-scaled construction enterprises must be elevated through the ownership transformation and M&A of state owned enterprises as well as the establishment of new property system involving technology and management elements.
The programming also put forward that the local governments should give policy support to small and medium sized construction enterprises for their development path of specialization, uniqueness and sophistication. Meanwhile, large sized ones are encouraged to diversify their business ranges.
During 12th five-year plan period, the rebar consumption amount, of which the yield strength more than or equal to 400 will reach 45% of the total reflecting that the steel structure industry may embrace a quick paced growth. As per the report from Guotai Junan Securities, the steel structure output will finish at 50 million tonnes to 65 million tonnes by the end of 2015 which indicates that the whole industry is expected to welcome prosperity in the next few years.
The prosperity of steel structure industry is conducive to the energy conservation. During 12th five-year plan period, the energy consumption of GDP will be reduced by 16% compared with that of 2010. That of unit added value during construction activities will be dropped by 10%.
The listed companies that run steel structure as their main business are sure to benefit from the newly-issued programming, highlighted by analysts. Zhejiang Jinggong P-D Steel Building Co Ltd which pioneered the industry for 5 consecutive years has lifted its gross profit margin by changing its sales strategy from a sub-contractor in charge of manufacturing to a general contractor.
(Sourced from Shanghai Securities News)
