Market review:
Last week, the new materials sector fell 2.61%, while the Shanghai and Shenzhen 300 index fell 1.68% in the same period. The new materials sector lagged behind the market by 0.93 percentage points. In terms of individual stocks, 24 of the 98 stocks in the sector rose, and 44 stocks outperformed the market. The top five gainers were Tangshan Sanyou Chemical Industries Co.Ltd(600409) (10.24%), Danhua Chemical Technology Co.Ltd(600844) (9.86%), Tangshan Sunfar Silicon Industry Co.Ltd(603938) (9.51%), Tanyuan Technology Co.Ltd(603133) (9.40%), Shanghai Hiuv New Materials Co.Ltd(688680) (7.40%); The top five declines were Jiangsu Shuangxing Color Plastic New Materials Co.Ltd(002585) (- 14.95%), Aofu Environmental Technology Co.Ltd(688021) (- 13.49%), Suzhou Jinhong Gas Co.Ltd(688106) (- 13.46%), Zhejiang Yongtai Technology Co .Ltd(002326) (- 13.09%), Lecron Industrial Development Group Co.Ltd(300343) (- 10.61%).
Industry hot spots:
Degradable plastics: on March 2, the fifth United Nations Environment Conference adopted the resolution on ending plastic pollution (Draft) in Nairobi, the capital of Kenya, which was approved and signed by 175 heads of state, environment ministers and other representatives. The resolution points out that an internationally legally binding agreement will be reached by 2024, involving the whole life cycle of plastic products, including their production, design, recycling and treatment, in order to promote global governance of plastic pollution. Earlier, the Ministry of ecology and environment of China also stressed again at a regular press conference in February that it would implement the legal requirements for plastic pollution control and promote the implementation of the opinions on further strengthening plastic pollution control and the action plan for plastic pollution control in the 14th five year plan. Since the formal implementation of the plastic restriction order in early 2021, the promotion and application effect of degradable plastic products such as PBAT and PLA in China has been good, and the new production capacity of degradable plastics has been released rapidly. Recently, the release of plastic pollution control and other relevant news may further expand the demand and application fields of degradable plastics in the future.
PVDF: Recently, Lecron Industrial Development Group Co.Ltd(300343) announced that Hua’an new material, a subsidiary of the company, has passed the Contemporary Amperex Technology Co.Limited(300750) supplier access audit and has been officially incorporated into the Contemporary Amperex Technology Co.Limited(300750) supply chain system, mainly providing lithium battery grade PVDF products for Contemporary Amperex Technology Co.Limited(300750) and its affiliates (Qinghai times, Liyang times, SAIC times, Sichuan times, etc.). According to the cooperation framework agreement previously signed by both parties, under the condition that the quality, price and delivery of Hua’an Xincai lithium battery grade PVDF meet the Contemporary Amperex Technology Co.Limited(300750) requirements, Contemporary Amperex Technology Co.Limited(300750) guarantees that the quantity of Hua’an Xincai lithium battery grade PVDF purchased each year is 80% of the total annual output of PVDF. Both parties have implemented and completed the product delivery in February in accordance with the agreed terms. The formal cooperation between Huaan new material and Contemporary Amperex Technology Co.Limited(300750) means that the quality of lithium grade PVDF has been recognized by the authorities in the industry. At present, lithium grade PVDF is still in a state of imbalance between supply and demand, and the price continues to rise. The mainstream quotation range is 56 Shenzhen Zhongjin Lingnan Nonfemet Co.Ltd(000060) 0000 yuan / ton. Huaan new material R142b can be self-sufficient and can be used as raw materials for export. With the rapid development of the new energy industry, it is expected that the prices of lithium battery grade PVDF and R142b will remain high in the short term, which will help boost the company’s revenue and profit performance in 2022.
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.
