Market review this week. This week, the wind new material index closed at 409223 points, down 6.44% month on month. Among them, Jiangxi Hungpai New Material Co.Ltd(605366) (4.41%), Anhui Wanwei Updated High-Tech Material Industry Co.Ltd(600063) (4.3%), Jiangyin Jianghua Microelectronics Materials Co.Ltd(603078) (1.59%), Jiangsu Yoke Technology Co.Ltd(002409) (1.47%), Qingdao Gon Technology Co.Ltd(002768) (0.05%); The top five declines were Cathay Biotech Inc(688065) (- 14.03%), Suzhou Jinhong Gas Co.Ltd(688106) (- 13.27%), Hubei Xiangyuan New Material Technology Inc(300980) (- 13.21%), Sinofibers Technology Co.Ltd(300777) (- 12.54%), Triumph Science & Technology Co.Ltd(600552) (- 12.34%); Shenwan tertiary industry display material index closed at 101495 points, down 1.92% month on month; CITIC’s tertiary industry silicone material index closed at 817544 points, down 1.3% month on month; CITIC’s tertiary industry carbon fiber index closed at 353916 points, up 0.49% month on month; CITIC’s tertiary industry lithium battery index closed at 425196 points, down 4.76% month on month; The wind concept degradable plastics index closed at 177006, down 3.77% month on month.
North Huajin Group plans EVA production capacity, and the PV grade EVA production capacity is expanding rapidly. Recently, North Huajin Chemical Industry Group Co., Ltd. announced a new refining and chemical integration project in the petrochemical fine chemical industry park, including EVA unit. China EVA is mainly used for functional shed film, packaging film, shoe material, hot melt adhesive, wire and cable, Cecep Solar Energy Co.Ltd(000591) photovoltaic, etc. With the adjustment of China’s industrial structure, the EVA industry presents differentiated development. The demand in traditional application fields such as foamed shoe materials and films is close to saturation, and the demand in application fields such as Cecep Solar Energy Co.Ltd(000591) batteries, coatings, wires and cables is growing steadily. According to the data of China Photovoltaic Industry Association, transparent EVA adhesive film is the main component packaging material in 2021, accounting for about 52% of the market share. According to China Chemical Information Weekly, the demand for EVA photovoltaic materials in China is expected to reach 1.08 million tons in 2023 and 2 million tons in 2025. Due to the good development prospect of photovoltaic grade EVA industry and attracting enterprise layout, it is expected that there will be more than 5 photovoltaic grade EVA mass production enterprises in China in the next three years, and the output of photovoltaic grade EVA will reach 550000 tons by 2023. However, in the short term, it is difficult to change the supply and demand pattern of PV grade EVA in China. By 2023, the supply and demand gap of the industry will still be about 120000 tons.
Recommendation of key targets: downstream demand promotes industrial upgrading and innovation, and the industry has entered a period of rapid development. China continues to promote manufacturing upgrading, the demand for high-standard and high-performance materials will be gradually released, and the new material industry is expected to develop rapidly. China’s anti-aging anti-aging agent Rianlon Corporation(300596) cannot do without the polymer additives. The capacity of Zhuhai new base is gradually released. With the Kangtai stock, it will enter 100 billion lubricant additives to create second growth points. It is recommended that China’s anti-aging leader Rianlon Corporation(300596) be the focus. The conflict between Russia and Ukraine has led to a shortage of rare gases in the semiconductor industry and a rapid rise in prices. It is suggested to focus on China’s electronic special gas leader Guangdong Huate Gas Co.Ltd(688268) . Considering the industrial coordination layout, it is suggested to focus on the new material platform company Shandong Sinocera Functional Material Co.Ltd(300285) . In terms of electronic chemicals, the downstream wafer factories are gradually completed, and the chip capacity is expected to continue to be released. It is suggested to focus on: Jiangsu Yoke Technology Co.Ltd(002409) , it is suggested to focus on: Anji Microelectronics Technology (Shanghai) Co.Ltd(688019) , Hubei Dinglong Co.Ltd(300054) . For photovoltaic materials, it is suggested to focus on the rubber film faucet Hangzhou First Applied Material Co.Ltd(603806) .
Risk tip: downstream demand is less than expected, product price fluctuation risk, new capacity release is less than expected, etc.
