Many listed companies in the chemical fiber and new materials sectors have recently released third-quarter performance reports. The reporter analyzed and sorted out the operating conditions of several companies in the carbon fiber industry, including three listed companies whose main business includes carbon fiber and two NEEQ-listed companies. Their operating conditions are a powerful reflection of the overall development of their subdivided industries.
If the polyester market still has fluctuations for a certain period of time despite the overall good market, then the market situation of domestic carbon fiber this year can only be described as “supply exceeds demand”, To describe it as “continuously hot”. In fact, this hot market has continued since last year and has not yet seen any relief. Benefiting from this hot market, the domestic carbon fiber industry as a whole has delivered the most brilliant answer since industrialization – achieving industry-wide profits in the first three quarters of this year.
It is particularly worth noting that since the beginning of this year, due to tight supply, the price of carbon fiber in the domestic market has continued to rise. Since the beginning of the year, the price of civilian carbon fiber products has increased by 30% to 50%, and that of military carbon fiber products has increased by 30% to 50%. Product prices have doubled or even increased. The sharp rise in prices has, on the one hand, supported the surge in net profits of some companies, but on the other hand, it has also lowered the gross profit margin of the company’s carbon beam business.
The third quarter report of Weihai Guangwei Composite Materials Co., Ltd. shows that in the first three quarters, the company achieved revenue of 1.963 billion yuan, a year-on-year increase of 22.42%, and achieved attributable net profit of 618 million yuan. A year-on-year increase of 17.89%.
Looking at business segments, during the period, the carbon fiber business of its subsidiary Weihai Tuduo Fiber Co., Ltd. achieved revenue of 1.048 billion yuan, a year-on-year increase of 18.02%; the carbon beam business of the energy new materials segment achieved revenue of 1.048 billion yuan. Revenue was 538 million yuan, a slight increase of 2.83% year-on-year. The prepreg business of the General New Materials segment continues to actively expand application fields such as aerospace, wind power, rail transit, etc., and the proportion of high-end applications has gradually increased. In the first three quarters, the prepreg business achieved revenue of 287 million yuan, a year-on-year increase of 81.92%.
“The revenue from the carbon beam business increased slightly, mainly due to the tight supply of raw material carbon fiber market, rising prices, and exchange rate changes since this year, resulting in insufficient delivery of product orders and loss of product profitability. There has been a decrease.” said the person in charge of Guangwei Composite Materials.
It is worth noting that since this year, the fiber sector has expanded its “high-strength and high-model carbon fiber industrialization project” with M40J/M55J grade carbon fiber as its products, and gradually expanded its output based on actual demand. Since the second quarter, the production capacity of the “military-civilian integrated high-strength carbon fiber efficient preparation technology industrialization project” using T700S grade/T800S grade carbon fiber as products has been gradually released.
The reporter learned during the interview that the carbon fiber needed for Guangwei Composite’s wind power carbon beam business mainly relies on external procurement.
Li Taoyang, an analyst at CITIC Construction Investment, pointed out that Guangwei Composite Materials is one of the leading companies in the domestic carbon fiber industry and continues to strengthen investment in R&D and innovation, with new projects, new products, and new products. The results of technological research and development are remarkable, and the performance growth in the first three quarters of this year is stable. In the future, as the company’s product R&D technology and production capabilities continue to improve, the demand for downstream equipment continues to increase, the demand for domestic carbon fiber continues to grow, and the demand in industrial fields such as wind power is released, the company’s military and civilian products business will continue to maintain steady growth. In particular, benefiting from the dual impact of the accelerated construction of aviation equipment and the increase in the penetration rate of composite materials, Guangwei’s composite military product business revenue is expected to maintain rapid growth in the next few years.
The third quarterly report of Jilin Carbon Valley Carbon Fiber Co., Ltd., a company listed on the New Third Board, shows that in the first three quarters, the company achieved revenue of 723 million yuan, a year-on-year decrease of 18.23%, and achieved attribution to the listed company. Shareholders’ net profit was 179 million yuan, a year-on-year increase of 108.61%.
Talking about the reasons for the company’s revenue decline in the first three quarters under the hot market, Jilin Carbon Valley said: “It is mainly due to the company’s acrylonitrile trading business from January to June 2020. Since June 2020, the company has no longer conducted acrylonitrile trading business.”
The data that can be referenced is that from July to September this year, Jilin Carbon Valley’s production and sales continued to increase, and its sales volume continued to increase. Revenue increased by 72.03% year-on-year.
The third quarterly report of Zhongjian Technology Co., Ltd. shows that in the first three quarters, the company achieved operating income of 300 million yuan, a year-on-year increase of 15.43%, and achieved attributable net profit of 145 million yuan, a year-on-year increase 10.29%.
In order to seize the market opportunities in the current hot market, various companies have accelerated the construction of new projects.
Jilin Chemical Fiber Co., Ltd. issued an announcement announcing that on October 28, its holding subsidiary Jilin Kemeike Chemical Co., Ltd. started a production line with an annual output of 600 tons of 1K and 3K carbon fibers. Success, another production line is also being commissioned. It is understood that the project started construction in April this year and includes two carbonization production lines with an annual output of 300 tons.
The civil engineering work of the Guangwei Baotou project, which will have an annual production capacity of 4,000 tons in the first phase, has basically been completed, and the preparation and installation stages of auxiliary projects and equipment will follow. “Currently, the company’s carbon fiber resources for the carbon beam business are in short supply, and the company is making every effort to promote the Baotou project to be put into production and reach production as soon as possible.” said the person in charge of Guangwei Composite Materials.
Zhongjian Technology also recently announced that it plans to invest 1.867 billion yuan to build a polyacrylonitrile raw silk production line, an oxidation carbonization line, a carbon fiber fabric production workshop, etc. After completion, it will form Annual production capacity of 1,500 tons (12K) of high-performance carbon fiber and fabrics.
The reporter also learned during the interview that at present, major domestic�The production lines of fiber manufacturers are operating at full capacity, and products are still booming in both production and sales, with demand exceeding supply.
Talking about the next supply situation of carbon fiber in the domestic market, an industry insider said: “In the future, with the increase in my country’s low-cost carbon fiber supply capacity and Japan’s demand for mainland China’s T700 With the relaxation of the embargo on high-grade fiber, the tight supply of civil carbon fiber in my country may be alleviated to a certain extent. The specific price trend will depend on the actual market situation.”
Overall, It is expected that in the next 2 to 3 years, the prosperous market situation of domestic carbon fiber will continue, and domestic carbon fiber will usher in new and great development.
“In the past two years, my country’s carbon fiber production has not only grown rapidly, but also achieved industry-wide profitability for the first time in the first half of this year. With the technological progress and demand growth in the wind power, photovoltaic and transportation industries , high-performance fibers represented by carbon fiber will usher in a ‘golden era’. Technological progress will accelerate and competition will intensify. It is expected that the competitive landscape of the global carbon fiber industry will undergo major changes in the next 5 to 10 years.” China Textile Industry Federation Vice President Duan Xiaoping said this at a recent global chemical fiber industry conference. </p
