Last week, the new material sector rose 3.19%, while the Shanghai and Shenzhen 300 index rose 1.08% in the same period. The new material sector led the market by 2.11 percentage points. In terms of individual stocks, 75 of the 98 stocks in the sector rose, and 64 stocks outperformed the market. The top five increases were Shanghai Hiuv New Materials Co.Ltd(688680) (14.36%), Jiangsu Pacific Quartz Co.Ltd(603688) (14.21%), Tangshan Sunfar Silicon Industry Co.Ltd(603938) (13.70%), Novoray Corporation(688300) (12.67%) and Jiangsu Shuangxing Color Plastic New Materials Co.Ltd(002585) (12.47%); The top five declines were Shennan Circuits Co.Ltd(002916) (- 5.48%), Luoyang Glass Company Limited(600876) (- 4.98%), Ningbo Changhong Polymer Scientific & Technical Inc(605008) (- 4.97%), Jiangsu Dewei Advanced Materials Co.Ltd(300325) (- 4.86%) and Valiant Co.Ltd(002643) (- 3.47%).
Industry hot spots:
PVDF: last week, China’s PVDF market operated steadily. According to the statistics of Baichuan Yingfu, as of February 18, the prices of PVDF pellets and PVDF powders in China were 300000 yuan / ton and 310000 yuan / ton respectively, and the price of battery grade PVDF was 455000 yuan / ton, which was the same as that in the same period last week. From the cost side, at present, the mainstream price of raw material R142b in the market is 195000 yuan / ton, and the quotation of some manufacturers has been raised to 200000 yuan / ton, which plays a strong support for the price of PVDF. On the demand side, there has also been positive news recently. On the one hand, China’s policy is still good for new energy vehicles, and the data of Shanxi Guoxin Energy Corporation Limited(600617) vehicles and power batteries in mid January are outstanding. On the other hand, Tesla recently announced that it has recently started pilot mass production of 4680 batteries with higher PVDF consumption. Now that the Lantern Festival is over, it is expected that with the resumption of production by downstream enterprises, the demand for PVDF will gradually open. Considering that China’s production capacity at the supply side is still dominated by industrial grade and the production capacity of lithium grade PVDF is small, it is expected that there is still room for the subsequent price increase of lithium grade PVDF. It is suggested to pay attention to relevant leading enterprises.
CMP grinding fluid: last week, Shanghai Sinyang Semiconductor Materials Co.Ltd(300236) announced that in order to continuously expand its business scope and product application fields, the company signed a capital increase agreement with Suzhou bonarun Electronic Materials Co., Ltd. After negotiation between the two sides, Shanghai Sinyang Semiconductor Materials Co.Ltd(300236) plans to increase the capital of Bora electronics with its own funds by 20 million yuan. After the capital increase is completed, the company will hold 9.1% equity of Bora electronics. The main business of Bora electronics is the development, production and sales of grinding materials and polishing materials. At the same time, the company issued an announcement on the transfer of 100% equity of Shanghai Huiyan, which is mainly engaged in CMP grinding fluid R & D business, for 33 million yuan. Shanghai Sinyang Semiconductor Materials Co.Ltd(300236) after the equity transfer and capital increase in this announcement are completed, it can form a synergistic effect with the company’s existing CMP grinding fluid project, promote the company’s in-depth development in grinding fluid related fields, integrate industrial resource advantages and enhance the company’s comprehensive strength. At the same time, the industrial development of the company will also help China accelerate the realization of domestic substitution of CMP, a “neck” link in the process of integrated circuit production.
Risk factors: downstream demand is less than expected; The domestic substitution process of core materials is less than expected; The construction progress of capacity under construction is less than expected; The price of raw materials fluctuated sharply.
