Jilin Carbon Valley, the leader of carbon fiber precursor, released its annual report on the 18th. Last year, the company doubled its carbon fiber revenue and profit. The company is very optimistic about the development of the industry in the next three to five years, and is currently expanding its production significantly. The expansion of production is also a collective action of the current industry. The question is, will there be excess production if there is more expansion?
carbon fiber shine
In 2021, Jilin Carbon Valley realized an operating revenue of 1.209 billion yuan, a year-on-year increase of 9.71%; The net profit was 315 million yuan, a year-on-year increase of 126.09%. Among them, the company’s main product carbon fiber precursor income was 1.12 billion yuan, and other income (Note: Trade) decreased significantly from nearly 500 million yuan to less than 50000 yuan. The company explained that with the rapid development of civil and industrial product markets of carbon fiber tow, the company’s production capacity was released in an orderly manner, the sales of carbon fiber precursor, the main product, was rapidly expanded, and the main business income increased by 104.14% year-on-year. The substantial increase in profits is due to the strong market demand for carbon fiber precursor, the rising price and the steady rise of comprehensive gross profit margin.
Statistics show that the gross profit margin of Jilin Carbon Valley carbon fiber precursor last year was 41.42%, an increase of 6.04 percentage points over the same period of the previous year. As recognized by the capital market, Jilin Carbon Valley’s share price is very resistant to decline.
Carbon fiber is a basic new material which combines structural materials and functional materials, has a variety of excellent properties and has a wide application prospect. It not only has excellent enhancement and weight reduction effect, but also has the properties of corrosion resistance, high temperature resistance, low expansion coefficient and conductivity. It has great development space in the fields of aerospace, wind power, hydrogen energy, photovoltaic, construction engineering, rail transit, automobile and so on.
Carbon fiber industry is a national strategic emerging industry and has broad development prospects in the lightweight market. After long-term independent research and development, the output of China’s carbon fiber industry will gradually increase in 2019. At present, the industry as a whole has reached the technical capacity of T400, some enterprises have realized the large-scale production of T700 Carbon fiber, and T800 and above have entered the small batch test production.
Song Jia, an analyst of Baichuan Yingfu chemical industry, said that she has been looking at carbon fiber since 2019. Since then, carbon fiber has been rising, with a cumulative increase of about 80%, and the gross profit of the industry has been rising. According to the data of Baichuan Yingfu, as of April 15, the average price of small tow carbon fiber in China was 225 yuan / kg, unchanged from last week; The average price of large tow carbon fiber in China was 145 yuan / kg, unchanged from last week.
According to Song Jia’s analysis, the main reason for the continuous rise of carbon fiber prices is that the downstream demand is strong, and the production expansion speed of carbon fiber enterprises can not keep up, resulting in little inventory in the industry, so that it is difficult for new customers to get goods if they want to come in and purchase.
Jilin Carbon Valley said in its annual report that the “carbon peak and carbon neutralization” strategy will have a far-reaching impact on the carbon fiber industry: the new energy strategy will greatly stimulate the development of new energy such as wind power, photovoltaic and hydrogen energy. The next 3-5 years will be a period of great development of China’s carbon fiber industry.
The carbon fiber industry chain includes upstream precursor, midstream carbon fiber and downstream application fields. In recent years, a number of related companies have been listed, such as Jilin Carbon Valley in the upper reaches, Sinofibers Technology Co.Ltd(300777) , Zhongfu Shenying in the middle reaches. In addition, Jilin Chemical Fibre Co.Ltd(000420) , Sinopec Shanghai Petrochemical Company Limited(600688) also added carbon fiber business, and xinsanban Hengshen shares have been immersed in this field for many years Weihai Guangwei Composites Co.Ltd(300699) products are covered with carbon fiber and downstream composite materials.
Among the above companies, last year, the net profit of Zhongfu Shenying was about 260 million yuan to 290 million yuan, with a year-on-year increase of 205.05% – 240.25%; The net profit of Hengshen shares was about RMB 131million to RMB 160million, with a loss of nearly RMB billion in the previous year.
industry expansion
The tight supply situation makes the expansion of production the key word of the carbon fiber industry in 2022.
According to the production capacity and commencement data of Jilin Carbon Valley, the company designs a carbon fiber precursor project with an annual output of 40000 tons, with a production capacity under construction and an investment of 964 million yuan. The completion time is: 7 of the 8 production lines have been put into operation and the other one is about to be put into operation.
Sinofibers Technology Co.Ltd(300777) mainly produces high-performance carbon fiber. In March this year, it completed a financing of nearly 2 billion yuan. After the completion of the raised investment project, it has an annual production capacity of 1500 tons (12K) of high-performance carbon fiber and fabric products. Before the completion of the fund-raising, Sinofibers Technology Co.Ltd(300777) signed a large order of carbon fiber and fabric exceeding RMB 2.1 billion, accounting for 556.94% of the company’s operating revenue in 2020, and the contract performance period is from 2022 to 2023.
Zhongfu Shenying has just landed on the gem, and the company has built China’s first 1000 ton dry jet wet spinning carbon fiber industrialization production line. The net fund raised this time is 2.777 billion yuan, which is intended to be used for the project of high-performance carbon fiber and supporting precursor with an annual output of 10000 tons in Xining, the aerospace high-performance carbon fiber and precursor test line project, and the R & D and manufacturing project of carbon fiber aviation application.
In addition, some enterprises have newly entered the carbon fiber industry Jilin Chemical Fibre Co.Ltd(000420) the total amount of funds to be raised is no more than 1.2 billion yuan, which will be used for 12000 tons of carbon fiber composite material project and repayment of bank loans The oxidation carbonization production line of Sinopec Shanghai Petrochemical Company Limited(600688) 1500 T / a pan based carbon fiber phase II project is expected to be completed in May this year. The projects under construction this year include 24000 T / a precursor and 12000 T / a 48 Κ Large tow carbon fiber project.
Weihai Guangwei Composites Co.Ltd(300699) business is relatively complex, forming a profit model of integrated and coordinated development from polyacrylonitrile precursor, carbon fiber and downstream composite materials. In 2021, the proportion of operating revenue contributed by carbon fiber business was 48.92%. Statistics show that the planned capacity of Inner Mongolia Guangwei carbon fiber project is 10000 tons, and the capacity under construction in phase I is 4000 tons. It is expected to be completed and put into operation in 2022.
With so many enterprises expanding production, will there be excess carbon fiber? Song Jia, an analyst of Baichuan Yingfu chemical industry, believes that the new carbon fiber production capacity is expected to be released intensively by the end of this year. At that time, it depends on whether the downstream demand can be undertaken. In addition to wind power, the downstream of carbon fiber has great growth potential in photovoltaic and aerospace markets.
For example, the permeability of carbon matrix composites in the photovoltaic field has begun to increase rapidly Kbc Corporation Ltd(688598) took the lead in breaking through the technology of making carbon / carbon composites, a new material for photovoltaic thermal field with carbon fiber, and greatly expanded its production. In 2020, the company registered on the science and innovation board and raised more than 900 million yuan for expansion. In 2021, 600 million yuan will be raised through convertible bonds to build a thermal field composite production capacity construction project. In February 2022, the company again offered a financing plan of 3.1 billion yuan, of which 1.8 billion yuan was invested in the “capacity expansion project of high-purity and large-scale advanced carbon matrix composites”.
