The current situation of the building materials industry is not optimistic, like an ugly test sheet.
The area of newly started residential construction in 2025 has dropped by 74% from the high point in 2019. The total credit plus asset impairment loss of waterproof faucet Oriental Yuhong in a single year has exceeded 1.6 billion yuan. Bunny Baby’s non-net profit has shrunk for three consecutive years, with a year-on-year decrease of 18.2% in 2025.
However, Beixin Building Materials submitted a completely different report.
In 2025, the net profit attributable to the parent company will be 2.999 billion yuan, the net profit rate will be 11.5%, and the operating cash flow will be 4.2 billion yuan. The cumulative dividends in the 29 years after listing have officially exceeded 10.7 billion yuan.
This is not a matter of luck, but a positive conclusion drawn from a complete “industry diagnosis”.
Most building materials companies suffer from “real estate dependence.”
Oriental Yuhong’s waterproofing business has long accounted for more than 80% of total revenue. A large number of engineering-side accounts receivable are difficult to recover due to thunderstorms among real estate companies, and the proportion of impairment losses in revenue has climbed to 6.79%.
Bunny decorative sheet revenue accounts for more than 82%. From 2023 to 2025, the gross sales profit margin will continue to decline, and the growth rate of non-net profit will continue to be negative.
The common problem of these companies is that they have a single business structure and put all their eggs in the basket of new real estate projects. When the basket collapses, bad debts and losses become inevitable.
Beixin Building Materials launched a de-risking strategy many years ago.
In 2025, gypsum board revenue will be 11.963 billion yuan, accounting for 47.32%, and non-gypsum board business will account for more than 52%; the total revenue of waterproofing and coatings will be nearly 9.3 billion yuan, and the two-wing business will contribute more than one-third of the net profit attributable to the parent company.
What’s more critical is the cycle mismatch. Gypsum board is directly connected to the increase in new real estate construction, while waterproofing and coatings belong to the post-cycle real estate category and benefit from the renovation of existing old houses and urban renewal.
The one with poor implementation effect of price increases in 2025 is gypsum board, but the waterproofing and coatings industries are the first to reach a leading coordinated price increase. The profit restoration of both wings has just offset the pressure on the main business. This is the “cold and warm complementarity” at the business structure level. Single-category companies do not have this buffer layer.
Beixin Building Materials’ cost moat is “picked” and “picked”.
Its raw material costs are naturally lower than those of its peers. In 2025, it will consume approximately 14.47 million tons of industrial by-product gypsum. The raw material cost per ton of this waste from power plants and chemical plants is only about one-tenth of that of natural gypsum.
Coupled with the “One Dime” cost saving plan covering the entire chain of procurement, production and management, and the three-wheel drive of group centralized procurement, process optimization, and organizational flattening, the complete cost per unit of gypsum board is more than 13% lower than that of the industry’s leading companies, and more than 30% lower than that of small and medium-sized manufacturers.
At the same time, 90% of key equipment has been automatically inspected, and per capita production efficiency has increased by approximately 40%.
These numbers add up to a cost base that peers cannot replicate in the short term.
Is the downturn in the building materials industry a phased adjustment or a structural recession?
For most companies, it is the latter, because their business logic and cost structure have not changed.
But for BNBM, the answer is closer to “staged stability.”
External factors are still under pressure. Although the decline in new real estate construction starts has narrowed, a V-shaped rebound has not yet been seen.
The internal factors are very solid. Business diversification resolves single-track risks, full-chain cost control creates a profit safety cushion, and the governance mechanism of central enterprises (37.5% independent director ratio, including shareholder returns in the assessment of senior executives) locks in the discipline of dividend distribution.
Ping An Securities predicts that net profits attributable to the parent company will reach 3.46 billion, 3.86 billion, and 4.29 billion yuan respectively from 2026 to 2028.
The only risk is the rigid increase in expenses caused by the expansion of the two wings. Sales expenses will increase by 10% year-on-year in 2025, but this is a controllable cost during the merger and acquisition integration period, which is far lower than the bad debt exposure of its peers, which often exceeds billions.
In other words, the “spots” in the industry diagnosis report have been isolated by three layers of protection here at BNBM: de-realization of the business structure, absolute cost leadership, and stable and sustainable governance.
This is not cyclical luck, but systemic immunity.
