Affected by policy factors, the recent collective rise of civil explosive concept stocks. The commodity index rose by 23.2% in the past two months. In terms of individual stocks, Poly Union Chemical Holding Group Co.Ltd(002037) won eight trading limits from January 26 to February 11. In addition, Sichuan Yahua Industrial Group Co.Ltd(002497) , Shanxi Huhua Group Co.Ltd(003002) , Tibet Gaozheng Explosive Co.Ltd(002827) , Hunan Nanling Industry Explosive Material Co.Ltd(002096) and other stocks all showed strong trends.
Behind the concern of capital, the civil explosive industry is ushering in major changes. It is understood that last December, the Ministry of industry and information technology made clear the time node for the full use of digital electronic detonators: stop production by the end of June 2022 and stop selling other industrial detonators except industrial digital electronic detonators by the end of August 2022.
On the interactive trading platform, investors pay close attention to the production capacity and relevant layout of electronic detonators of relevant listed companies. Many companies said that they are further increasing production capacity according to industrial policies and gradually realize the replacement of electronic detonators for traditional industrial detonators.
the time node for the full use of electronic detonators is finalized
Electronic detonators are electric detonators that use electronic control modules to control the initiation process. It is understood that compared with traditional detonators, electronic detonators have more advantages in safety and control functions, and are more in line with the overall development trend of the current civil explosive industry. In recent years, the state has gradually increased its support for the use of electronic detonators.
In December 2021, the Ministry of industry and information technology issued the safety development plan for the civil explosives industry in the 14th five year plan, which further defined the time node for the full use of digital electronic detonators.
\u3000\u3000 "The key to the civil explosive industry lies in the administrative access threshold. Those who can enter the industry will not have much difference in technology. The impact of the above policies on the civil explosive industry is small, and even if there are, it is limited to a small level. For example, a company has many traditional detonators in its inventory, which may not be digested before the regulatory deadline, which may cause some losses, but due to the impact of regulation After a six-month buffer period, the general problem will not be too big. " Kuang Yuqing, the founder of lens research, told the Securities Daily.
According to the data of China blasting equipment industry association, the output of industrial detonators in China was 890 million in 2021, including 164 million electronic detonators, with a year-on-year increase of 40% over last year. At present, the proportion of electronic detonators in the output of industrial detonators has increased from 12% in 2020 to 18% in 2021.
The industry estimates that the annual consumption of traditional detonators in the market is about 1 billion to 1.2 billion. Assuming 100% penetration of electronic detonators in the future, the market space of electronic detonators will reach 15 billion to 18 billion yuan at an average price of 15 yuan.
listed companies accelerate capacity replacement
With the finalization of the time node for the full use of electronic detonators, many civil explosive listed companies have turned to the capacity replacement of electronic detonators.
According to the requirements of the plan, if ordinary detonators are transformed and upgraded to digital electronic detonators, the production capacity of ordinary detonators shall be replaced by that of digital electronic detonators in the ratio of 10:1; For the demolition of the basic detonator production line, the replacement proportion of the demolished part of the production capacity shall be adjusted to 5:1; For the demolition of the whole detonator production line, the replacement proportion of the dismantled part of the production capacity shall be adjusted to 3:1; For the cancellation of production sites, the replacement proportion of some cancelled capacity shall be adjusted to 2:1.
Hunan Nanling Industry Explosive Material Co.Ltd(002096) on the interactive platform, the company has an existing capacity of 150 million ordinary detonators / year; The production capacity of electronic detonators is 28 million rounds / year. The production capacity of electronic detonators is being further increased and the production structure is being optimized according to industrial policies. Sichuan Yahua Industrial Group Co.Ltd(002497) in response to investors' questions on the interactive platform, it said that at present, the production capacity of electronic detonators is more than 50 million, and the production and sales volume is the first in the country. In the future, it will also actively respond to the requirements of the Ministry of industry and information technology, actively expand the production capacity of electronic detonators and continuously improve the market share.
Poly Union Chemical Holding Group Co.Ltd(002037) said on the interactive easy platform that the company has been promoting the construction of digital electronic detonator production line and capacity replacement in a prepared and planned manner in accordance with the national industrial policy. Due to different time points, the relevant capacity data are still being updated.
In addition, many listed companies also seize the time and hope to seize more share in the electronic detonator Market through M & A. Shenzhen King Explorer Science And Technology Corporation(002917) said that the company currently has an annual production capacity of 167 million industrial detonators, of which the holding subsidiary Shandong shengshida has completed the merger and acquisition of Taishan civil explosion, becoming the largest detonator production enterprise in Shandong Province.
When conducting comprehensive research on the replacement structure of electronic detonator, it is said that the policy of 6037{electronic detonator production constitutes a large-scale detonator. Although the unit price of digital electronic detonators is higher than that of ordinary industrial detonators, resulting in an increase in the procurement cost of detonators, if digital electronic detonators are used, due to the high delay accuracy, the use of explosives can be reduced by 5% to 15% and the use efficiency of explosives can be improved.
"Electronic detonators are in the process of rapidly replacing traditional detonators. Under the mandatory regulations of supervision, in addition to rapidly promoting the popularization and application of electronic detonators and completely replacing traditional detonators, it will also promote the acceleration of the concentration of the civil explosive industry under M & A integration, making the advantages of leading enterprises in the industry more apparent." Bai Wenxi, chief economist of IPG China, told the Securities Daily, "at this stage, in addition to focusing on technology R & D, relevant listed companies should also focus on improving their own production capacity and industry M & A integration, so as to improve their market share and industry influence."
