China National Chemical Engineering Co.Ltd(601117) Tianchen Qixiang’s first batch of hexanediamine products went off the assembly line and left the factory, and the localization of hexanedionitrile was further improved.
Recently, the hexanediamine unit of Tianchen Qixiang new material nylon new material project (phase I) under China National Chemical Engineering Co.Ltd(601117) successfully started up at one time, and the unit successfully produced the first batch of qualified products, and the product quality reached high-grade products. The global adiponitrile production capacity is mostly used for the production of hexanediamine, and the hexanediamine production capacity is mostly used for polymerized nylon 66. The successful start-up of Tianchen Qixiang hexanediamine plant will play an important role in alleviating the cost pressure of downstream enterprises, making up the short board of China’s Nylon industry chain, promoting the upgrading of materials and technology in the field of national defense and expanding the market application pattern China National Chemical Engineering Co.Ltd(601117) will promote the production and operation of adiponitrile unit as planned and make every effort to ensure the smooth output of adiponitrile products.
Previously, the global supply of adiponitrile was mainly monopolized by overseas enterprises, with high production costs and restricting the downstream application of PA66; In the future, with the breakthrough of adiponitrile localization, the reduction of production cost is expected to drive the increase of PA66 permeability.
Adiponitrile is one of the most important raw materials in the PA66 industrial chain (petrochemical – adiponitrile – hexanediamine – Civil PA66 chip – Civil PA66 fiber). Due to the high threshold of technology and investment, it is highly monopolized by overseas enterprises (in 2020, China’s adiponitrile import was 258000 tons, consumption was 288000 tons, and the actual output of civil PA66 was about 70000 tons).
The localization of adiponitrile is expected to promote the downstream application penetration of PA66. In the future, with the breakthrough in the localization of adiponitrile, it is expected that China will increase the output of adiponitrile by more than 650000 tons from 2022 to 23, far exceeding this forward export volume, effectively driving the decline in the price of civil PA66 chips and civil PA66 fiber, gradually expanding the use scenario of PA66 and effectively improving the market scale of PA66.
PA66 has better performance and wider applicability, and is expected to partially replace a variety of fibers including PA6. Compared with PA6, PA66 has better mechanical strength, stiffness, heat resistance, wear resistance and creep resistance. It is widely used in outdoor sports, yoga clothes, down jacket and other products; At the same time, it has a variety of applications in automobiles, UAVs, electronics and electricity. After the localization of adiponitrile, the production cost of PA66 is reduced, which drives PA66 to partially replace the existing PA6, including nylon, polyester and other conventional fiber markets, with a broad space.
The new production capacity of nylon filament has entered the release period, and the product structure has been optimized; Huai’an project provides long-term increment, and effectively improves the market share and brand strength with the help of the first mover advantage of the track within 2 years.
At present, the Zhe Jiang Taihua New Material Co.Ltd(603055) 120000 ton high-end nylon filament project has been put into operation and entered the production capacity release period. After the production capacity is fully released, the annual production capacity of nylon of the subsidiary Zhejiang Jiahua special nylon Co., Ltd. is expected to reach more than 185000 tons, opening a new growth space for the future development of the company.
At the same time, the company invested 10 billion yuan to build a new green multifunctional nylon new material integration project in Huai’an, Jiangsu Province. At present, the construction has been started; The first phase will add 100000 tons of recycled differentiated nylon silk and 60000 tons of PA66 differentiated nylon silk, so as to further expand the competitive advantage and overall market share of the company’s differentiated products and maintain a leading market position.
Zhe Jiang Taihua New Material Co.Ltd(603055) has a complete chemical fiber textile industry chain integrating R & D, spinning, weaving, dyeing and finishing and sales. It is capable of R & D and production of environmental protection and health, outdoor sports, special protection and other series and a variety of high-grade functional nylon fabrics. It is in the forefront of the industry in terms of production capacity, technical level and new product development capacity; It is a rare high-tech enterprise in China that can produce high-grade nylon 66-fdy products. The company’s production capacity, technical level and R & D capacity are ahead of its peers, and has successfully grasped the opportunity of nylon industry to significantly expand production, gradually release new production capacity, further strengthen the depth of cooperation with the brand and help expand new customers. We expect the company’s EPS in 22-23 years to be 0.70/0.95 yuan and PE to be 16x / 12x respectively.
Prompt: the risk of capacity expansion is less than expected; The price of raw materials fluctuates greatly; Risks such as lower downstream demand than expected.
