The scientific and technological revolution and the green revolution continue to sprout new business forms Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , while the problems of anti globalization and arms race caused by the epidemic and the conflict between Russia and Ukraine are becoming increasingly prominent. Ensuring the safety of mineral resources and solving the “neck” problem of key materials will become the key development direction of China’s non-ferrous iron and steel new material industry in the future, which has provided strong guarantee and support for the realization of national resource security and sustainable economic and social development.
The demand for nonferrous mineral resources and seven nonferrous varieties will still maintain high growth, but the problem of supply chain security is prominent. In November 2016, the State Council approved the national mineral resources planning (20162020), which included 24 kinds of minerals in the strategic catalogue, including 12 kinds of nonferrous minerals. From the perspective of “supply risk” and “economic importance”, gold, copper, aluminum, nickel, lithium, cobalt and rare earth are the seven non-ferrous metal resources that deserve more attention in China’s strategic metal mineral resources list.
The self-sufficiency of new military materials, high-end materials such as carbon fiber, superalloy and titanium alloy is still insufficient. 1) The demand for carbon fiber has increased rapidly, the self-sufficiency rate has increased by 37.8% from 4.8% in 20102020, and the trend of import substitution continues; 2) As for superalloys, the number of Chinese production enterprises is limited, the overall technical level lags behind foreign leaders, and the import dependence is strong; 3) The demand for titanium alloy has increased rapidly in recent years, and the domestic high-end titanium alloy bars and wires obviously lag behind the export.
The rise of new semiconductor materials, targets, silicon powder, tin balls, bonding wires and other semiconductor metal materials meets a historic opportunity. 1) Semiconductor targets: Japanese and American manufacturers account for about 90%, and there is an urgent demand for domestic substitution; 2) Most of the high-quality spherical silicon powder is still imported. The preparation of high purity and ultra-fine spherical silicon powder has become a hot spot in powder research in China. 3) For bonding wire, the market share of mainland enterprises is only 11%, and foreign brand manufacturers still occupy most of the market share; 4) tin ball: Japan’s thousand notes and China Taiwan trade promotion enterprises occupy more than 86% of the market share, and the mainland market share is low.
5g industry new materials, high-frequency copper clad laminate, indium phosphide, gallium arsenide, gallium nitride and other materials are urgently needed.
1) high frequency copper clad laminate: the core component of printed circuit board (PCB), the market share of mainland enterprises is only 7.3%, and high-end electronic copper foil is still monopolized by Japan. In 2021, the import volume of electronic copper foil in China was 131300 tons, with a year-on-year growth rate of 18.6%. 2) Indium phosphide, gallium arsenide and gallium nitride materials: there is a large gap between LNP and GaAs in China. The core technology is still in the hands of a few large international companies such as the United States, Japan and Europe. The generation difference of Gan technology is small. There are still opportunities to overtake in corners, but 80% of them still rely on imports.
Investment proposal and investment object
For non-ferrous mineral resources, it is recommended to pay attention to enterprises with rapid expansion of upstream resources such as Ganfeng Lithium Co.Ltd(002460) ( Ganfeng Lithium Co.Ltd(002460) , not rated), Yongxing Special Materials Technology Co.Ltd(002756) ( Yongxing Special Materials Technology Co.Ltd(002756) , bought), Zijin Mining Group Company Limited(601899) ( Zijin Mining Group Company Limited(601899) , not rated), China Molybdenum Co.Ltd(603993) ( China Molybdenum Co.Ltd(603993) , not rated), Zhejiang Huayou Cobalt Co.Ltd(603799) ( Zhejiang Huayou Cobalt Co.Ltd(603799) , bought), China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) ( China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) , not rated); In terms of new military materials, it is suggested to pay attention to Sinofibers Technology Co.Ltd(300777) ( Sinofibers Technology Co.Ltd(300777) , not rated) and Weihai Guangwei Composites Co.Ltd(300699) ( Weihai Guangwei Composites Co.Ltd(300699) , buy) with high-end carbon fiber production capacity; Citic Pacific Special Steel Group Co.Ltd(000708) ( Citic Pacific Special Steel Group Co.Ltd(000708) , buy) and Fushun Special Steel Co.Ltd(600399) ( Fushun Special Steel Co.Ltd(600399) , not rated) of Superalloy capacity expansion; Western Superconducting Technologies Co.Ltd(688122) ( Western Superconducting Technologies Co.Ltd(688122) , not rated) and Baoji Titanium Industry Co.Ltd(600456) ( Baoji Titanium Industry Co.Ltd(600456) , not rated) engaged in titanium processing;
In terms of new semiconductor materials, it is suggested to pay attention to Ningxia Orient Tantalum Industry Co.Ltd(000962) ( Ningxia Orient Tantalum Industry Co.Ltd(000962) , not rated) and Xinjiang Joinworld Co.Ltd(600888) ( Xinjiang Joinworld Co.Ltd(600888) , not rated) with high-purity metal purification capacity; Grinm Advanced Materials Co.Ltd(600206) ( Grinm Advanced Materials Co.Ltd(600206) , not rated), Konfoong Materials International Co.Ltd(300666) ( Konfoong Materials International Co.Ltd(300666) , not rated), Longhua Technology Group(Luoyang)Co.Ltd(300263) ( Longhua Technology Group(Luoyang)Co.Ltd(300263) , not rated), etc. engaged in target manufacturing; Novoray Corporation(688300) ( Novoray Corporation(688300) , not rated) and Jiangsu Yoke Technology Co.Ltd(002409) ( Jiangsu Yoke Technology Co.Ltd(002409) , not rated) engaged in high-end spherical silicon powder in China; And Ningbo Kangqiang Electronics Co.Ltd(002119) ( Ningbo Kangqiang Electronics Co.Ltd(002119) , not rated) engaged in bonding wire manufacturing and Yunnan Tin Co.Ltd(000960) ( Yunnan Tin Co.Ltd(000960) , not rated) engaged in tin ball manufacturing; For 5g new materials, it is recommended to pay attention to high-end electronic copper foil enterprises, such as Nuode Investment Co.Ltd(600110) ( Nuode Investment Co.Ltd(600110) , not rated); Indium phosphide and gallium arsenide related material enterprise Yunnan Lincang Xinyuan Germanium Industry Co.Ltd(002428) ( Yunnan Lincang Xinyuan Germanium Industry Co.Ltd(002428) , not rated); Gallium nitride related enterprises, such as Advanced Technology & Materials Co.Ltd(000969) ( Advanced Technology & Materials Co.Ltd(000969) , not rated), Naura Technology Group Co.Ltd(002371) ( Naura Technology Group Co.Ltd(002371) , not rated), Sanan Optoelectronics Co.Ltd(600703) ( Sanan Optoelectronics Co.Ltd(600703) , buy), Sichuan Haite High-Tech Co.Ltd(002023) ( Sichuan Haite High-Tech Co.Ltd(002023) , not rated).
Risk tips
Macroeconomic slowdown, fluctuations in raw material prices, changes in the international political and economic situation, the risk that the transformation and upgrading of high-end manufacturing is less than expected, and the risk that the market calculation does not meet the expectation based on assumptions, resulting in the deviation of the calculation results.
