Market review:
Last week, the new material sector fell 2.52%, while the Shanghai and Shenzhen 300 index fell 4.22% in the same period, and the new material sector led the market by 1.70 percentage points. In terms of individual stocks, 18 of the 98 stocks in the sector rose, and 49 stocks outperformed the market. The top five gainers were Tangshan Sunfar Silicon Industry Co.Ltd(603938) (11.01%), National Silicon Industry Group Co.Ltd(688126) (9.61%), Jiangsu Dewei Advanced Materials Co.Ltd(300325) (8.61%), Jiangyin Jianghua Microelectronics Materials Co.Ltd(603078) (7.00%), Phichem Corporation(300398) (5.93%); The top five declines were Aofu Environmental Technology Co.Ltd(688021) (- 17.03%), Shanghai Pret Composites Co.Ltd(002324) (- 14.07%), Ningbo Changhong Polymer Scientific & Technical Inc(605008) (- 13.12%), Henan Jindan Lactic Acid Technology Co.Ltd(300829) (- 12.68%) and Guangdong Guanghua Sci-Tech Co.Ltd(002741) (- 11.37%).
Industry hot spots:
Neon gas: Recently, according to foreign media reports, two major neon gas suppliers inGas and cryoin in Ukraine have suspended operations due to the continuous impact of the Ukrainian Russian war. Neon is an important raw material for semiconductor chip manufacturing, and the two Ukrainian neon suppliers supply 45% - 54% of the world's semiconductor grade neon. If the dispute between Ukraine and Russia continues, the two enterprises will suspend business for a long time, while other neon production enterprises still need a time cycle of 9 months to 2 years to increase production capacity. During this period, it may cause the global semiconductor grade neon gas supply interruption, which will have an impact on chip production. At the same time, due to the smaller market scale and higher price elasticity of rare gases such as neon, the change of supply and demand structure is easy to cause the sharp rise and fall of product prices. Since the war between Ukraine and Russia, the price of neon has soared rapidly. As of March 12, the mainstream price of 100% high-purity neon in China was 15000 yuan / m3, up 361.5% from March 1 and 1400% from the beginning of the year. Now the mainstream suppliers in Ukraine have officially announced the suspension of business, which may cause the global neon price to rise again. It is suggested to pay attention to the leading manufacturers of neon and other electronic special gases in China.
Electrolyte materials: at the beginning of 2022, the production and sales of Shanxi Guoxin Energy Corporation Limited(600617) automobiles are booming. According to the data released by China Automobile Association, from January to February 2022, the cumulative output of Shanxi Guoxin Energy Corporation Limited(600617) vehicles in China was 820000, an increase of 158.2% year-on-year; The sales volume was 765000, a year-on-year increase of 154.7%. GGII therefore predicts that the sales volume of Shanxi Guoxin Energy Corporation Limited(600617) automobile market is expected to exceed 5.5 million in 2022. While the new energy market continues to improve, it has driven the demand for electrolyte materials upstream of lithium batteries, which in turn boosted the performance of relevant manufacturers. Recently, a number of electrolyte material manufacturers have announced the performance forecast for the first quarter of 2022 or the operation data from January to February. The performance of Guangzhou Tinci Materials Technology Co.Ltd(002709) , Do-Fluoride New Materials Co.Ltd(002407) , Zhejiang Yongtai Technology Co .Ltd(002326) and other enterprises has increased significantly year-on-year in the beginning of 2022. At present, lithium hexafluorophosphate, VC, DMC and electrolyte are still in the period of capacity climbing and expansion. Although the recent high price has been loosened, the callback range in the short term is limited under the condition of continuous high downstream demand. According to the statistics of Baichuan Yingfu, as of March 11, the average market price of lithium hexafluorophosphate in China was 535000 yuan / ton, the market price of VC was 23 Fawer Automotive Parts Limited Company(000030) 0000 yuan / ton, the market price of battery grade DMC was 8 Xiandai Investment Co.Ltd(000900) 0 yuan / ton, the market price of lithium iron phosphate electrolyte was 105000125000 yuan / ton, and the market price of ternary conventional power electrolyte was 128000147000 yuan / ton. For leading enterprises, while the orders are sufficient, the electrolyte materials will still maintain a considerable and relatively stable profit level in the short term. It is suggested to pay attention to the dynamics of relevant enterprises.
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.
