company news about New Material, New Market: Shihuan New Material Ultra-Fine Glass Wool Has Broad Market Prospects

New Material, New Market: Shihuan New Material Ultra-Fine Glass Wool Has Broad Market Prospects

China Economic News Network

• In 2021, the main business income of my country's glass fiber and products industry will reach 124.4 billion yuan, an increase of 21.4% year-on-year; the total profit will increase by 95.5% year-on-year, reaching a record 23.14 billion yuan. In 2022, as the global demand for energy storage is ignited again, glass fiber will usher in another industry-wide boom. As the basic industry of the national economy, the country has issued a series of industrial policies to vigorously support the material industry to encourage and support the development of the wave fiber industry. For the development of the industry, it has undoubtedly created a very favorable market environment.
• My country's "13th Five-Year Development Plan for Fiber Composite Materials Industry" clearly states that "promote the development of high-performance glass fibers, focus on the development of alkali-resistant, low-dielectric, flat fibers, ultra-fine electronic fibers and ultra-thin electronic cloth, etc. Functional glass fiber, accelerate the research and development of intelligent and green manufacturing technology, and promote the industrialization of high-strength and high-modulus glass fiber and thermoplastic composite materials." By 2022, a series of policy documents such as the "14th Five-Year Plan for the Development of Raw Materials Industry" successively launched by relevant ministries and commissions have once again mentioned the high and continuous development of high-performance fibers and composite materials such as glass fiber and carbon fiber. attention.

• For enterprises in the industry, with the support of a series of national industrial incentive policies, how to break through the barriers of capital, scale effect, technology and talent, brand and certification, and grasp the basic conditions of good policy guidelines and systems , is a new challenge, but at the same time this track is also full of infinite hope and opportunities.

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  Looking back at the last round of glass fiber development opportunities, it originated from the country's proposal to develop green buildings. Due to the safety, reliability and energy-saving effect of glass fiber, it was quickly promoted to the field of construction and installation. This lightweight material includes GRC boards, insulation boards, fireproof boards, and more. In its subdivision field, ultra-fine glass wool is also called microfiber glass wool because of its light weight, high temperature resistance, low temperature resistance, sound insulation and non-combustibility, low thermal conductivity, no fear of insects, no skin puncture, and high water repellency. It is also widely used in architectural installations.

   

• Up to now, entering 2022, global political and economic instability factors have increased, and black swan events have occurred frequently, resulting in another energy crisis, and the pace of development and utilization of new energy in various countries has accelerated. Taking wind power as an example, my country has set off a round of rush to install wind power in the past two years. By 2022, my country's wind power installed capacity will still reach 55GW. As an important composite material, glass fiber is widely used in the manufacture of blades of large-scale units. Although microfiber glass wool and glass fiber wool as special materials belong to the glass fiber industry, they are now more used in battery separators, The thermal insulation layer of the energy storage battery separator and the manufacturing of laboratory-grade filter paper to clean the air.

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  From the perspective of product content, microfiber glass wool belongs to the "specialized, refined, special and new" reserve project, which is in line with the long-term goal of carbon neutrality. Although the material is inconspicuous, it has very broad application prospects. Inner Mongolia Shihuan New Materials, which has been cultivating microfiber glass materials for decades and is the first company in the region to be listed on the NEEQ, is such a company. It has emerged in the tide of demand in the times and has quickly become a dark horse in the industry.

   

• Inner Mongolia Shihuan New Materials was established in April 2011. In 2015, the company's laboratory was identified as an autonomous region-level glass fiber industry engineering laboratory by the Inner Mongolia Autonomous Region People's Government. In 2016, it was appraised as "Vice Chairman Unit" by the National Microfiber Glass Wool and Its Products Committee, and successively passed the ISO9001:2015 quality management system certification, the national high-tech enterprise certification, and the Autonomous Region Microfiber Glass Wool Technology Research Center identified. As of 2021, the company has obtained 25 national patents. After years of development, the company has become the leading enterprise producing microfiber glass wool in the country.

• From 2017 to 2021, the company's operating income increased from 77.4683 million yuan to 273 million yuan. The net profit attributable to the parent increased from 9.1746 million to 69.5548 million yuan. In just 4 years, the profit has achieved a nearly 8-fold increase. Last year's profit was nearly 70 million yuan, reaching a blowout outbreak. The price of the company's main new materials continues to rise, and its annual performance this year may continue to increase significantly.

• The reason why Shihuan New Materials can achieve such high-energy results is precisely because the company aims at the demand side, expands the supply side, strictly controls costs, pays close attention to technology, and relies on technical leverage to achieve long-term development, and finally builds the cornerstone of its rise.

• Starting from the second half of 2020, the glass fiber market has turned hot, the unit price of products has risen, and related product companies have made comprehensive profits. Judging from the trend, the demand of the large glass fiber industry has maintained a steady growth this year. Under the influence of the new needs of the times, the subdivided microfiber glass wool in glass fiber has more uses. Because of its particularity and high efficiency, it can be further promoted and penetrated into the use of battery separators, energy storage battery separators, laboratory filter papers, and air purification in industries such as automobiles, electric vehicles, shipbuilding, wind energy, and solar energy. Glass wool has become the hottest and most promising industry in the market in the past year.

• Shihuan New Materials is mainly based on the most advanced flame blowing technology, and the production of an important product --- glass fiber filter paper with large dust holding capacity and high filtration efficiency is the product of this technology. At present, there are few manufacturers in the world capable of large-scale production of this filter paper, but it is widely used in electronics manufacturing, medical production, aseptic diagnosis and treatment, food processing, animal breeding and other industries. In the high-quality glass fiber purification cotton market, the market size of glass fiber filter paper required for chip production alone reaches 4.3 billion yuan per year. The demand in the field of integrated circuit manufacturing is more than 1.7 billion yuan. In addition, the demand for high-end panel manufacturing has reached 1.8 billion yuan. The demand for medical professional clean rooms exceeds 1.5 billion yuan.

• Another fact that cannot be ignored is that, as a local leading enterprise, Shihuan New Material's unique company scale advantage is becoming more and more obvious. Since 2004, the company has started large-scale construction. Now the factory covers an area of ​​33,250 square meters, and the engineering laboratory covers an area of ​​2,000 square meters. At present, the company has a number of glass fiber production lines. It is worth mentioning that the media reports at the beginning of listing on the New Third Board showed that Shihuan New Material’s daily glass wool production capacity was as high as 20 tons to 25 tons. The order volume surged for a while, and the supply of products was in short supply.

• In recent years, the state has gradually controlled the production capacity of high-energy-consuming industries, and made a series of clear regulations on the single-line production capacity of the glass fiber industry. As a subdivided industry of the glass fiber industry, Shihuan New Materials is also within the jurisdiction of the national policy. However, the company follows national policies and strictly enforces energy consumption standards. The subsidiary Haisheng Company will complete preparations and start production in 2021, and its production capacity will be released normally and quickly.

• At the current stage of high-growth industrial demand, it means that the supply chain of enterprises has officially entered the stage of "comprehensive upgrading", and the immediate priority is to reduce costs. It can even be said that "thrift leads to prosperity, and prostitution leads to perish." Therefore, , Shihuan New Materials regards procurement as an important part of cost reduction for enterprises. According to the latest semi-annual report of the company, the company raised the usual simple transaction procurement to the level of strategic procurement, and reduced the supply chain cost of the entire product production by coordinating the resource advantages inside and outside the company. The latest semi-annual report also mentioned that the company comprehensively controls procurement costs and quality through "tender procurement, non-tender procurement, centralized procurement" and other modes.

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  On the other hand, in the cooperation mode with major suppliers, the company signs strategic long-term contracts. After considering the two-factor optimization of "purchase volume" and "supplier", Shihuan New Materials also adopts methods such as inquiry, price comparison, and price negotiation for special goods, engineering, and service items, and uses the game mechanism to reduce procurement processing costs. As another big move for the company to reduce costs - the acquisition of mature enterprises, Shihuan New Materials has acquired Inner Mongolia Jiaruihai Glass Fiber Material Co., Ltd., which has fully mastered the technology of microfiber glass wool processing and other technologies. The complete industrial chain of equipment has taken a solid step forward.

  

• If a worker wants to do a good job, he must first sharpen his tools. On the whole, the company has strong R&D strength and large investment. The R&D center implements the general manager responsibility system, and the center has various departments under unified management. The R&D personnel's profession covers multi-disciplinary interdisciplinary majors, and has formed a very professional and young R&D team. At the same time, Shihuan New Materials has formed a strategic cooperation alliance of production, education and research with famous universities and scientific research institutions, and often invites experts and professors to the company for technical guidance.

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  After the establishment of the technical team, Shihuan New Materials increased the research and development expenses and technical breakthroughs for sub-category products according to the development needs. According to public data, the company's research and development expenses in the first half of this year exceeded 5 million yuan, an increase of nearly 70% over the same period last year. And successfully developed a number of core products, including 253 special glass fiber cotton used in the production of energy storage battery separators, glass fiber absorbent separators and 475 high-end glass fiber cotton used in laboratory filter paper, domestic water filters, etc. , The company's product competitiveness has been rapidly improved.

• When we review the glass fiber industry cycle, we can see that 2018 was a period of overcapacity in this industry, but when the industry reappeared in 2020, the installation of new energy led to a gap between supply and demand in the industry. Reflected at the company level, starting from the second half of 2020, the glass fiber market will improve, including the rise in the unit price of ultra-fine glass wool and glass fiber products, the increase in the sales volume of glass wool, and the increase in revenue. The trend will be further extended. What is certain is that only companies that persist in long-term preparations can persevere in the opportunities and challenges and achieve final success.

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  In terms of performance, in 2021, Shihuan New Materials will achieve an operating income of 273 million yuan, a year-on-year increase of 183.53%, a net profit attributable to the parent of more than 65 million yuan, a year-on-year surge of 827.07%, and a return on net assets of more than 80%. The year-on-year growth rate of operating income exceeded 183.53%, ranking fourth among 515 new innovation-level companies. The year-on-year growth rate of net profit attributable to the parent company ranked third, and its performance was stronger than 91% of innovative companies.

  

• In the future, Shihuan New Materials will continue to focus on emerging fields such as new energy, energy storage, and clean filtration, and continue to expand its territory through mergers and acquisitions of microfiber glass wool companies with core technologies. At present, the industry PE of the company's new materials is as high as 60-80 times on average, and the door to corporate valuation space has opened. Under the current economic environment, the comprehensive registration system may be launched at any time, and the company will seize the opportunity to start listing counseling and apply for an IPO. It is foreseeable that with the support of a market with more abundant liquidity, Shihuan New Material Transfer Board will definitely bring greater surprises and more returns to shareholders and all walks of life.