In a flurry of financial reports, Chinese and Asian plastics firms are posting generally solid results.
While noting some challenges in China's economy and trade friction with the U.S., the companies were generally touting good returns on the back of Beijing's continued infrastructure spending, faster economic growth last year and strategic moves like shifting lower-end manufacturing to Vietnam.
At pipe-making giant China Lesso Group Holdings Ltd., for example, sales rose 18.2 percent to 20.36 billion yuan ($3.246 billion) for the year ending Dec. 31. Gross profit was 5.314 billion yuan ($846.0 million), up 16 percent.
Pipes and pipe fittings represented nearly 90 percent of those sales, and the company told the Hong Kong Stock Exchange that it's benefited greatly from Beijing's aggressive spending on water, sewer, drainage, power supply and telecommunications.
Continued migration from coal heating, for example, is driving demand for natural gas pipe. Sales in this category jumped 119 percent to 412 million yuan ($65.6 million).
Lesso's dominant market is the mainland, as exports amounted to only 3.5 percent of sales.
Still, the company sees opportunities in other countries from Beijing's Belt and Road Initiative, and as it continues to try to build a global presence for its lessohome.com interior decoration products business, establishing service centers in the United States, Canada, Australia, Asia and the Middle East.
This year, the company said it plans to open a Lesso Home center in New York.
The firm has 22 production facilities throughout China. The most recent opened in Hunan in the second half of 2017. Two production facilities are under construction in Zhejiang and Fujian provinces.