Quzhou Wuzhou Special Paper Co.Ltd(605007) (605007) Zhang Haijun, Secretary of the board of directors, has been very busy recently. From February 13 to February 23, he has received four research activities on institutional investors. Quzhou Wuzhou Special Paper Co.Ltd(605007) has also attracted market attention because of the rise in the price of paper products.
in the latest research activity, Quzhou Wuzhou Special Paper Co.Ltd(605007) said that in terms of food card, "on Monday (February 21), the company sent a price increase letter of 300 yuan / ton. The specific price increase depends on the relationship between supply and demand of the industry. At present, the demand for food card is still very strong." In terms of grasin paper, "the company raised the price by 500 yuan / ton in mid February and 500 yuan / ton in March."
food white card in short supply new projects enter the year of capacity release
For the company's latest operating conditions, Quzhou Wuzhou Special Paper Co.Ltd(605007) said that benefiting from the rise of sales price and proper control of raw material cost, the company had significant benefits in the first half of 2021, the sales price fell in the second half of 2021, and the pressure on the cost side was high, resulting in a month on month decline in the first and second half of 2021. The company expects that there will be a certain increase in 21 years compared with 20 years. At the product level, the demand for grazin paper and food card is very strong, with both Chinese and international factors.
In terms of production capacity, Quzhou Wuzhou Special Paper Co.Ltd(605007) revealed that the company's original food paperboard production capacity is about 280000 tons. The construction of Jiangxi base was completed in 2021, and the base has four lines. This year is the year of capacity release, and the production capacity of the new production line is about 500000 tons of food cards. It is expected to contribute 70% of the capacity utilization in 2022, that is, the production and sales of about 350000 tons. The company has made a comprehensive plan in terms of capacity digestion and performed smoothly in 2022q1.
"After the 500000 ton food card is put into operation, investors are particularly concerned about the digestion of production capacity and the increment of demand side. From the current sales situation in January, the white food card is in short supply, and the production capacity climbing is also ideal. Without the influence of other factors, the annual production capacity utilization rate is expected to reach 70%."
As for the reasons for the strong demand for products, the company said that in China, Henan Province has just promulgated a comprehensive plastic ban from March 1, "The demand for food white card is expected to be good this year. We see that the trend of replacing plastic with paper may be better than expected, and the guidance of national policies will be faster. It is expected that plastic prohibition orders may be issued in succession in all provinces and regions of the country this year.". Internationally, affected by the epidemic, the supply chain of European and American countries has stagnated, and the demand for food white cards in international business is very strong. Since the fourth quarter of last year, the export orders have increased rapidly. The company expects the export volume of food white cards to increase significantly year-on-year, which is also the reason why the supply is in short supply at present.
It is noteworthy that the recent rise in the cost of wood pulp and the increase in energy prices have brought cost disturbances to the paper industry. Quzhou Wuzhou Special Paper Co.Ltd(605007) frankly, the company has some production capacity in Qujiang District, and the price of steam extraction increased due to the rise in the price of power coal in the fourth quarter of last year.
\u3000\u3000 "In terms of product structure, the consumption of steam per ton of different special paper products is different, and white card accounts for the vast majority of the products in Quzhou base. Generally speaking, it was affected and controllable in the fourth quarter of last year. At present, the company's main production capacity comes from Jiangxi base, which has its own self-sufficiency in steam and electricity cogeneration. Since this year, all four production lines in Jiangxi base have been put into operation, which has a large scale of energy consumption The effect has gradually appeared. At the policy level, ensuring the stability of energy prices is the main tone. The rise in energy costs caused by the rise in the price of thermal coal in the fourth quarter of last year should be a temporary event. " The company said.
it is expected to produce and sell more than 1 million tons this year
For the prediction of annual sales in 2021 and 2022, Quzhou Wuzhou Special Paper Co.Ltd(605007) said that the company expects about 600000 tons of sales in 2021 and more than 1 million tons in 2022, with a target of 1.1 million tons.
at the client level, Quzhou Wuzhou Special Paper Co.Ltd(605007) introduces that the company has a large customer base, including major large and medium-sized customers in China; In terms of structure, the product structure is rich, including different levels of customer groups. The new production capacity can be digested by the majority of customer groups, and with the increase of production capacity, it also expands new customers, especially to meet the needs of high-end customers; On the other hand, at present, the global food card supply side is concentrated at both ends of Europe and China. Europe is affected by the large-scale strike of paper mills and the epidemic, and the production side is affected. It can only meet the needs of Europe and drive a large number of orders to Chinese manufacturers.
Among them, in terms of key products, Quzhou Wuzhou Special Paper Co.Ltd(605007) is China's Taiwan region, with 18 million people consuming 300 thousand tons of food cartons. Due to the catering habits in Hubei, the scale of food white card in Wuhan market alone is 200000 tons. The company believes that the scale of substitution demand is expected to be considerable after China's comprehensive plastic ban. Therefore, the company is stepping up the construction of Hubei new base and supporting chemical mechanical pulp production line.
It is worth mentioning that Quzhou Wuzhou Special Paper Co.Ltd(605007) announced in January this year that it plans to build a pulp and paper integration project with an annual output of 4.49 million tons in Hanchuan Xinhe Town paper products Industrial Park, Xiaogan, Hubei Province. The total investment of the project is 17.3 billion yuan and the planned land area is 4483 mu. It is the largest single industrial project introduced by Xiaogan so far and the first manufacturing project with more than 10 billion yuan in the city. The company revealed the progress in the research that the project has obtained the energy consumption index, completed the project, and is currently doing the environmental impact assessment.
\u3000\u3000 "Among the uses of the company's products, in addition to the steady growth of noodle bowl paper every year, the demand for lunch boxes, milk tea cups, coffee cups and fast food has increased rapidly, and the recent export situation is also good. The supply of food cards is mainly in Europe and China, and Southeast Asia, East Asia, South America and central and Eastern Europe are net imports. Due to the epidemic in Europe, and the production capacity has been eliminated in succession in the past few years, the superposition of energy can be realized The source cost has increased and the paper price has soared recently, so China's white card export has increased greatly recently. " The company said.
recent intensive price rise of paper enterprises
The reporter of securities times · e company noted that recently, paper enterprises have intensively issued price increase letters. Following the price increase announced by the box board corrugated paper factory, the prices of cultural paper and white cardboard have also been raised one after another. According to Zhuo Chuang information, from January to February, the price increase of large-scale paper mills gradually fell to the ground. Since the beginning of the year, the average price of double offset paper market has increased by 3.8%, and the average price of white cardboard market has increased by 5.5%.
Recently, there are rumors that Shandong Bohui Paper Industry Co.Ltd(600966) (600966) has comprehensively increased the price of cardboard by 200 yuan / ton. Insiders of the company responded: "from the perspective of cost, it is not surprising that the price of paper has increased. The price of pulp and various chemical raw materials are rising. The company has both self-produced pulp and purchased pulp. The self-produced pulp is made of wood chips, and the wood chips are also rising. In addition to cardboard, the price of double offset paper has increased by more, up 300 yuan / ton."
Shandong Sun Paper Co.Ltd(002078) (002078) also said that the rise in the price of cultural paper was mainly due to better demand. The pulp of cultural paper mainly depends on outsourcing. Due to the impact of the epidemic and the rise of freight, the price of imported pulp is at a high level as a whole. At present, the price of cultural paper exceeds 5000 yuan / ton, which will rise by 300 yuan / ton in March, with a price increase of about 6%.
Institutions are also optimistic about the opportunities of the paper industry. The Equity Research Department of Oriental Fund said that there are three main reasons for the rise in the prices of cultural paper and white cardboard. First, the downstream demand has improved. The peak bidding season for cultural paper was ushered in February, and the impact of the "double reduction" policy on the demand for cultural paper has gradually weakened. Second, the recent shortage of overseas white cardboard supply chain has led to the return of orders to China, which has significantly increased the export demand of white cardboard. Third, the cost side is supported. According to Zhuo Chuang information, since the beginning of the year, the spot price of Chinese commodity coniferous pulp has increased by 6.7%, and the spot price of broad-leaved pulp has increased by 6.3%, further promoting the rise of paper price.
The Equity Research Department of Dongfang Fund believes that the investment opportunities in the paper industry deserve attention: first, it is suggested to pay attention to cultural paper enterprises that have significantly benefited from the rise in wood pulp prices and whose profitability is expected to be repaired. Second, it is suggested to pay attention to the white cardboard enterprises with the recent rapid growth of export orders and the gradual implementation of new production capacity.
