On May 29, 2026, Oriental Yuhong issued a major overseas investment announcement. The company’s controlled subsidiary Indonesia Oriental Yuhong officially launched a localized merger and acquisition project in Indonesia.
The company invested a total of 1,426.388 billion Indonesian rupiahs, equivalent to RMB 542 million, to acquire 55% of the equity of Indonesian manufacturing company PT IALK through a combination of “capital increase + equity acquisition”, and acquired 55% of the equity of local sales leader PT ACUM through pure equity acquisition.
After the transaction is completed, the two companies will be incorporated into Oriental Yuhong’s overseas operation system, achieving absolute control and localized operations.
PT IALK and PT ACUM, the targets of this transaction, are supporting building materials companies under the control of the same actual controller. The industrial division of labor is highly in line with the local market demand in Indonesia, forming a complete closed loop of production and sales.
Among them, PT IALK focuses on the research and development and large-scale production of building materials products such as waterproof coatings, tile adhesives, caulks, and concrete additives. PT ACUM is responsible for omni-channel marketing, wholesale and retail, and terminal services. It is a rare integrated waterproof building materials head asset in Indonesia.
Different from the shallow layout of most companies in the industry that simply go overseas to sell goods, this acquisition of Oriental Yuhong directly targets the core pain points of the waterproofing track in Southeast Asia. The exchange of capital acquisition for the local market and the upgrading of local products with technological empowerment are a landmark move in the company’s internationalization strategy from “going overseas on a large scale” to “deep roots”.
As the largest economy in Southeast Asia, Indonesia’s solid economic fundamentals and continued increase in infrastructure investment provide a long-term growth platform for the local waterproof building materials industry.
The company acquired by Oriental Yuhong was founded in 1985 and has been deeply involved in the Indonesian waterproof building materials market for more than 40 years. After many rounds of industry reshuffles, it has firmly ranked second in the Indonesian waterproof coating industry. It is one of the local waterproof brands with the highest recognition and brand penetration rate in Indonesia’s retail channels.
For overseas companies, the biggest barriers in the Southeast Asian market have never been technology and production capacity, but localized brand recognition, sinking retail channels and scene adaptation capabilities. This is also the core logic of Oriental Yuhong giving up building its own factories and choosing to spend heavily to acquire mature local targets.
On the sales side, PT ACUM has mastered the core sinking retail channel barrier in the Indonesian waterproof market.
PT ACUM is deeply involved in the local To C retail and small and micro workwear markets, and has built a sales network covering all of Indonesia, all islands, and all urban and rural areas. It cooperates with more than 3,000 large-scale building materials supermarkets, chain dealers, terminal decoration stores, and hardware stores. Its channels have penetrated into the rural market. It is the local waterproof brand with the highest channel coverage in Indonesia.
The completion of this Indonesian dual-enterprise merger is a key microcosm of the iterative upgrade of Oriental Yuhong’s international strategy.
Different from the superficial overseas expansion model of most domestic building materials companies that “simply export products and seize overseas markets at low prices”, Oriental Yuhong has formed a mature globalization strategy with the main waterproofing business as the absolute core, localized mergers and acquisitions as the main path, and a hierarchical layout of the global market. It has been fully upgraded from the early “product overseas” to a full-dimensional and in-depth overseas expansion of “technology overseas, brand overseas, production capacity overseas, and solution overseas”.
Reviewing the pace of Oriental Yuhong’s international expansion in recent years, the company has always focused on the main business of waterproofing and supporting building materials, accurately deployed in global high-growth emerging markets, and quickly implemented localized operations through high-frequency and precise local leading mergers and acquisitions, avoiding the shortcomings of long overseas factory construction cycles, high risks, and weak market awareness.
In November 2025, the company spent RMB 144 million to acquire 60% equity of Brazil’s Novakem, entering the South American waterproof market. This acquisition allowed Oriental Yuhong to quickly win the core waterproof market in South America and build a localized production capacity and sales system in South America.
In March 2026, the company once again focused on overseas channel layout, acquiring World Hardware for 164 million Hong Kong dollars to make up for the shortcomings of overseas hardware and building materials channels, achieve accurate matching of waterproof products and terminal channels, and open up the “last mile” of overseas product launches.
Coupled with the 542 million yuan acquisition of localized waterproof faucets in Indonesia, Oriental Yuhong has officially completed its dual-core emerging market layout in Southeast Asia and South America, forming a global pattern of “high-end technology research and development in North America, deep cultivation of production capacity in South America, sinking channels in Southeast Asia, and global product coverage”.
Compared with domestic peers such as Keshun and Beixin, which focus on exporting products and building overseas factories, Oriental Yuhong’s merger-and-acquisition global layout is faster, has higher barriers, and has deeper localization penetration. It has completely escaped the competitive trap of domestic building materials companies’ overseas low-price involution.
In the long term, this transaction will continue to strengthen Oriental Yuhong’s global industry moat.
On the one hand, through localized mergers and acquisitions, the company continues to acquire scarce overseas retail channels, local brands, scene adaptation technology and operational teams, building competition barriers that are difficult to replicate in overseas markets, getting rid of the pressure of homogeneous competition and overcapacity in the domestic market, and opening up a new profit growth curve.
In 2025, the company’s overseas revenue will increase by 62.13% year-on-year to 1.421 billion yuan, accounting for 5.15% of the company’s total annual revenue, and is expected to become the third growth curve of the company’s development.
From the perspective of the industry structure, the global waterproof industry is currently at a critical stage of replacing established international companies as the leader.
In the past, the global high-end waterproof market has long been monopolized by international giants such as Saint-Gobain and Sika. However, Oriental Yuhong has now firmly ranked first in global waterproof material sales and has become China’s benchmark in the global waterproof industry.
The completion of this acquisition in Indonesia will further promote waterproof technology and building materials brands to the core markets of Southeast Asia, break the monopoly of international brands, and reshape the competitive order of the waterproof industry in emerging markets around the world.
For the company’s own development, this transaction perfectly fits Oriental Yuhong’s long-term strategic plan.
As the growth rate of domestic infrastructure slows down, competition in the waterproofing industry becomes increasingly fierce, and industry concentration continues to increase, the growth of the domestic market has gradually peaked, and going overseas to deploy high-growth overseas markets has become the company’s choice to break through growth bottlenecks and broaden development boundaries.
