Degree-
Market review of this week (February 14-february 18)
The new materials index rose 4.03%, outperforming the gem index. OLED materials rose 0.32%, semiconductor materials rose 3.1%, membrane materials rose 4.85%, additives rose 0%, carbon fiber rose 3.23%, and tail gas treatment rose 0.7%. The top five increases were Zhuzhou Times New Material Technology Co.Ltd(600458) , Shanghai Hiuv New Materials Co.Ltd(688680) , Jiangsu Pacific Quartz Co.Ltd(603688) , Tangshan Sunfar Silicon Industry Co.Ltd(603938) , Novoray Corporation(688300) ; The top five declines were Hangzhou Oxygen Plant Group Co.Ltd(002430) , Nanjing Cosmos Chemical Co.Ltd(300856) , Actblue Co.Ltd(300816) , Pan Asian Microvent Tech (Jiangsu) Corporation(688386) , Valiant Co.Ltd(002643) .
Observation of new materials week: the localization of lubricating oil additives has started, and the four major factories have come to China to expand the demand for single agent
Lubricating oil additive is an indispensable functional component in the production of lubricating materials. The mass proportion of lubricating oil is 2% – 30%, which is widely used in motor vehicles, metalworking fluids and industrial engines. Shanghai lubricating oil industry association predicts that the market demand for lubricating oil additives in China will continue to grow steadily. In 2023, the demand for lubricating oil additives in China will reach 1.12 million tons, accounting for about 20.63% of the global market in the same period. From the international perspective, the industry is highly concentrated. Lubrizol, Infineum, Chevron oronite and Afton have long occupied 85% of the global market share. In China’s lubricant additive industry, Xinxiang Richful Lube Additive Co.Ltd(300910) , Kangtai Co., Ltd., Wuxi Nanfang and other enterprises belong to the first tier enterprises. Lubrizol, runyinglian and Chevron olennaise, the four major international lubricant additive companies, have established production bases in China one after another. Their end products are mainly composite agents, and their production lines are mainly composite agent production lines, which need a large number of single agents as production raw materials. According to the statistics of China lubricating oil network, the capacity of Lubrizol, runyinglian and Chevron’s compound agent production lines in China is 175000 tons, 100000 tons and 100000 tons respectively, totaling 375000 tons; Lubrizol’s single agent capacity is 71200 tons, and Lubrizol Yinglian and Chevron have not built a single agent production line yet. The compound agent is made by physical blending of single agent. Calculated by 1:1, the demand gap of single agent corresponding to the production capacity of Lubrizol, runyinglian and Chevron compound agent is about 300000 tons. The phase II expansion project of runyinglian in Zhangjiagang was officially launched in 2020, which will further expand the single agent demand of the four major manufacturers in the Chinese market. In the long run, the improvement of the localization rate of compound agents in the future will bring greater growth space for domestic enterprises. Beneficiary objects: Rianlon Corporation(300596) , Xinxiang Richful Lube Additive Co.Ltd(300910) , etc.
Important company announcements and industry information
[ Haohua Chemical Science & Technology Corp.Ltd(600378) ] the term of office of the seventh board of directors and board of supervisors of the company will expire on February 20, 2022. In view of the work related to the joint reorganization of the two modernizations, the general election of the board of directors and the board of supervisors of the company will be postponed appropriately.
[ Zhejiang Yongtai Technology Co .Ltd(002326) ] the company plans to invest in the construction project with an annual output of 150000 tons of electrolyte with self raised funds, with a total investment of 400 million yuan. It is planned to form a production capacity of 150000 tons of electrolyte with a construction period of one year.
Beneficial object
We are optimistic about the broad market of functional membrane materials under the background of industrial transfer, the breakthrough of domestic substitution of high-end electronic materials from 0 to 1, and the new opportunities of new materials in the wave of new energy. Beneficiary objects: Jiangsu Sidike New Materials Science & Technology Co.Ltd(300806) , Haohua Chemical Science & Technology Corp.Ltd(600378) , Red Avenue New Materials Group Co.Ltd(603650) , Wuxi Acryl Technology Co.Ltd(603722) , Rianlon Corporation(300596) , Sichuan Em Technology Co.Ltd(601208) , Ningbo Solartron Technology Co.Ltd(688299) , Zhejiang Jiemei Electronic And Technology Co.Ltd(002859) , Xi’An Manareco New Materials Co.Ltd(688550) , Puyang Huicheng Electronic Material Co.Ltd(300481) etc.
Risk tip: technological breakthrough is less than expected, industry competition intensifies, raw material price fluctuations, etc.
