Market review:
Last week, the new materials sector rose 6.48%, while the Shanghai and Shenzhen 300 index fell 1.67% in the same period. The new materials sector led the market by 8.15 percentage points. In terms of individual stocks, 74 of the 98 stocks in the sector rose, and 91 outperformed the market. The top five gainers were Hoshine Silicon Industry Co.Ltd(603260) (31.23%), Lecron Industrial Development Group Co.Ltd(300343) (17.85%), Guangdong Huate Gas Co.Ltd(688268) (14.59%), Shenzhen Prince New Materials Co.Ltd(002735) (13.24%), Jiangsu Pacific Quartz Co.Ltd(603688) (12.95%); The top five declines were Shandong Sinocera Functional Material Co.Ltd(300285) (- 9.25%), Shenzhen Danbond Technology Co.Ltd(002618) (- 5.14%), Kangda New Materials(Group) Co.Ltd(002669) (- 4.74%), Rayitek Hi-Tech Film Company Ltd.Shenzhen(688323) (- 4.73%) and Tangshan Sanyou Chemical Industries Co.Ltd(600409) (- 2.61%).
Industry hot spots:
PVDF: last week, Quzhou ecological environment bureau announced its intention to approve the environmental impact assessment documents of Zhejiang Juhua Co.Ltd(600160) “new 48kt / avdf technical transformation and expansion project”, “new 30kt / apvdf technical transformation and expansion project (phase I) and new 23.5kt/apvdf project”. The project is expected to be completed and put into operation in the fourth quarter of 2023 with a total investment of 1.7 billion yuan. At present, Zhejiang Juhua Co.Ltd(600160) has formed a complete industrial chain of VDC to HCFC-142b VDF VDF PVDF upstream and downstream, with PVDF production capacity of 3500 tons, including 2500 tons of emulsion method and 1000 tons of suspension method, and another 6500 tons of suspended PVDF is expected to be put into operation in the first half of 2022, and the technical barrier of suspension technology is even higher, which can produce lithium grade PVDF. At this stage, lithium grade PVDF is still in short supply, and the mainstream quotation range in the market is 56 Shenzhen Zhongjin Lingnan Nonfemet Co.Ltd(000060) 0000 yuan / ton. Moreover, the high price of upstream R142b is difficult to fall, and the market quotation is in the range of 19 Shenzhen Zhongheng Huafa Co.Ltd(000020) 0000 yuan / ton, which has strong support for PVDF price. Considering that Zhejiang Juhua Co.Ltd(600160) has formed a perfect layout in the upstream and downstream of PVDF industrial chain for many years, if its subsequent 6500 tons of suspension PVDF capacity and newly planned expansion capacity can be put into operation as planned, the subsequent PVDF and its industrial chain business are expected to contribute considerable performance increment to the company.
Lithium battery materials: on February 25, the 100000 t / a lithium battery cathode material integration project of Yunnan Zhongsheng new materials Co., Ltd. was officially started, including raw material pretreatment, coating, carbonization, graphitization, finished product processing and other plants and equipment. The production capacity of two production lines in phase I of 30000 tons is expected to be completed in July 2022. On the same day, the foundation laying ceremony was held for the 200000 ton lithium battery high-energy cathode material project of Fengyuan (Yunnan) lithium energy technology Co., Ltd., a subsidiary of Shandong Fengyuan Chemical Co.Ltd(002805) company. The total investment of the project is 6.5 billion yuan, with an annual output of more than 50000 tons of lithium iron phosphate cathode material in phase I and a planned land area of 247 mu. Since the beginning of 2022, the production and sales of China Shanxi Guoxin Energy Corporation Limited(600617) automobile market have been booming, and the procurement demand of downstream battery manufacturers for positive and negative materials is not weak in the off-season. Under the trend of strong demand, tight supply and high raw material prices, the price of lithium battery anode and cathode materials has risen all the way without correction, and the supplier has strong willingness to support the price. Before entering the peak period of new production capacity, it is expected that the price of lithium battery anode and cathode materials will continue to operate at a high level. It is suggested to pay attention to the leading enterprises in the lithium battery material industry chain with cost advantages and scale advantages.
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.
