The second batch of prefabricated building model cities are released. Prefabricated decoration is expected to become a new trend in the future

On September 15, the General Office of the Ministry of Housing and Urban-Rural Development issued the "Notice on Identifying the Second Batch of Prefabricated Building Model Cities and Industrial Bases" (hereinafter referred to as the "Notice"). 18 cities including Chongqing are recognized as the second batch of prefabricated construction model cities, 12 parks including Tianjin Modern Construction Industrial Park, and 121 enterprises including Beijing Construction Engineering Group Co., Ltd. are the second batch of prefabricated construction industrial bases.

Prior to this, 13 departments including the Ministry of Housing and Urban-Rural Development and Reform Commission jointly issued the "Guiding Opinions on Promoting the Coordinated Development of Intelligent Construction and Building Industrialization". It is clear that by 2025, the policy system and industrial system for the coordinated development of intelligent construction and construction industrialization in my country will be basically established.

According to data from the China Building Decoration Association, the prefabricated decoration building area in 2019 was 45.29 million square meters, accounting for less than 2% of the newly built building area. The current penetration rate of prefabricated decoration is low. Huatai Securities believes that prefabricated decoration has obvious advantages and is expected to become a new trend in future decoration. It is estimated that by 2025, the scale of the prefabricated decoration market is expected to increase from 113.2 billion yuan in 2019 to 639 billion yuan, with a compound growth rate of more than 30%. In the mid- to long-term perspective, labor costs continue to rise and environmental protection requirements become stricter, and prefabricated decoration is more in line with the development direction of building industrialization.

At present, decoration companies entering the prefabricated decoration market are mainly divided into two modes: material integration and self-developed main materials. Huatai Securities believes that the material integration model does not change the original main material, the short term can be significantly increased to meet the needs of developers to improve the assembly rate, self-researched main material model can gradually solve customer acceptance and cost issues, straight face industry pain points, the future is expected to become a trend. Gold Mantis is the absolute leader in the field of traditional public decoration, and has a strong ability to integrate the industrial chain of prefabricated decoration; Yasha Co., Ltd. self-developed main materials and has obvious product advantages; Quanzhu Co., Ltd. is the leader in the field of residential full decoration and continues to iterate the prefabricated interior system , Ke Lida's advantages in the field of material connection will greatly promote its assembly business development.