Taihe New Material Broke 2 Billion 100 Million In 2018, And Wanhua Chemical Is The Same As Yantai SASAC's "Rocking Qian Shu".

Yantai Taihe new material Limited by Share Ltd (hereinafter referred to as "Taihe new material") released the annual performance bulletin in 2018 on the evening of February 20th. During the reporting period, the company achieved operating income of 2 billion 176 million yuan, an increase of 40% over the same period last year, and realized a net profit of 162 million yuan, an increase of 62% over the same period last year.

Taihe new material explained that in 2018, benefiting from the growth of the two major business boards of aramid and para aramid, the company's profit level has increased considerably.

As for the aramid, due to the tight supply and demand growth, and driven by the rising cost of raw materials, the sales price of aramid continues to rise, and the production line runs at full capacity.

According to market changes, the company promptly dispatcher production to meet market demand, and the product structure is constantly optimized to achieve a substantial increase in profits.

In regard to aramid fiber, Taihe new material has been successful in market cultivation for many years, downstream demand continues to increase, sales prices continue to rise, products continue to produce full sales, and military and civilian integration projects such as military helmets and tactical gloves have come down one after another, with significant economic benefits.

Spandex is affected by factors such as oversupply, Sino US trade friction and so on. The market continues to slump, and the prices of products continue to slide. At the same time, the industry has entered a period of deep adjustment, some enterprises continue to expand production, and there are also bankruptcies, production cuts or production stoppages.

In view of this situation, the company implements the Yantai and Ningxia bistatic strategy, acquiring spandex projects in low-cost areas, actively optimizing the industrial layout, consolidating and enhancing the competitive strength, and achieving a substantial increase in output and sales volume throughout the year.

However, due to the long commissioning cycle and high cost of commissioning of the new project, at the same time, the price of spandex raw materials is running high and the demand for downstream market is not strong. The loss of spandex business has reduced the growth of the company's performance.

According to public information, Taihe new material is a high-tech enterprise mainly engaged in R & D, production and sales of high performance fibers. The company specializes in R & D, production and sales of high performance fibers such as spandex and aramid. Its main products are nysta spandex, thompada, aramid, Teflon and para aramid.

The company is the first spandex production company in China. Nesta spandex is mainly used in the textile field and medical and health field. It is used to increase the elasticity of fabrics. It is known as the "condiment" in textiles and ranks the top five in China.

At present, Taihe new material has aramid fiber production capacity of 7000 tons / year, and the aramid production capacity is 1500 tons / year, ranking the first in the country. The aramid production capacity is second in the world. In addition, the company has spandex production capacity of 75 thousand tons / year (45 thousand tons in this department and 30 thousand tons in Ningxia Vietnam).

According to the financial report, in the first half of 2018, the business income of the aramid plate accounted for 46% of the total revenue of Taihe new material, while the gross profit accounted for 82%, and aramid was the main source of its performance.

From the perspective of gross margin, the spandex industry has been on the decline in recent years. On the contrary, the aramid business has continued to rise and the gross profit margin has increased steadily.

As of the three quarter of 2018, Yantai Taihe Group Co., Ltd. owns 35.5% of Taihe new material, and is the largest shareholder of the company.

The actual control of the company is owned by the Yantai SASAC, which has a 18.1% stake in Taihe Group.

The shareholders of Yantai Yufeng and Yantai Yuhe investments are all executives and backbone of Taihe new material group and joint stock company, and altogether hold 17.4% of Taihe new material.

Deng Jianquan, a securities analyst at the Great Wall, said that with the gradual opening of the downstream application field, the aramid production line of Taihe new material is still unable to meet the demand of the market although it is still at full load. At present, the construction of Taihe new material in Ningxia base has started construction of 3000 tons / year para aramid project. It is expected to be completed and put into operation at the end of 2019 or early 2020. The Yantai Industrial Park 12000 tons / year aramid, 12000 tons / year aramid project is expected to start in 2019, and the two phase project will be completed by the end of 2022.

After the expansion project is completed, the company will have aramid, and the aramid production capacity will be greatly improved.

In terms of spandex, Taihe new material plans to implement bistatic construction in the next five years and invest 3 billion yuan to form a total capacity of 90 thousand tons of spandex.

In the low cost Ningxia area, it plans to invest 2 billion yuan and plan capacity of 60 thousand tons / year. At present, 30 thousand tons of the first phase have been put into operation. After the project is completed, the sales revenue is expected to reach 2 billion yuan, with a total profit of 260 million yuan.

Yantai new park, the company plans to invest 1 billion yuan to build 30 thousand tons of high value-added differential spandex project, while the old plant 40 thousand tons project will shut down and exit, it is estimated that the sales revenue will reach 1 billion 80 million yuan, and the total profit will be 200 million yuan.

The cost of production factors such as coal and electricity in Ningxia is relatively low. It is estimated that the cost of spandex will reach 2000~3000 yuan lower than that in Yantai. The new project in Yantai has better added value of products.

Through the pfer and upgrading of production capacity, the new spandex business of Taihe new material is expected to change the situation of large loss of spandex business and become an important performance growth point for the company.