In the next five years, the demand for degradable plastics in China is expected to grow rapidly. It is conservatively estimated that the demand will be 3.5-4.5 million tons in 2025.
Beijing introduced measures to ban non degradable plastic bags
According to the Beijing Municipal Development and Reform Commission, the key points of the 2022 Beijing plastic pollution control action plan were recently issued.
The key points of this release focus on deepening the governance work from 8 aspects, and put forward 23 specific measures. Among them, for non degradable disposable plastic products, it will promote the reduction from the source by the end of 2022, Beijing Express outlets will prohibit the use of non degradable plastic packaging bags, disposable plastic woven bags, etc., and electronic waybills, “slimming tape” and recycling transfer bags will basically achieve full coverage
degradable plastics demand grows rapidly
Plastic is widely used, but recycling is very limited, so plastic waste can be seen everywhere. Environmental pollution is a serious problem that can not be ignored.
According to UNEP data, plastic production soared from 2 million tons per year in 1950 to 348 million tons in 2017, becoming a global industry worth US $522.6 billion, and the production capacity is expected to double by 2040.
According to CNR, on March 2, the resumed session of the fifth United Nations Environment Conference adopted the resolution on ending plastic pollution (Draft). The resolution aims to promote the global control of plastic pollution, which is one of the most ambitious environmental actions in the world since the 1989 Montreal Protocol.
According to the statistics of the International Energy Agency (IEA), in the past five years, more than 60 countries have imposed bans or taxes on disposable plastics, while major economies such as the European Union, the United States and China have upgraded the “plastic restriction order” to “plastic prohibition order”.
The main alternative fields of degradable plastics are plastic bags, express bags, agricultural films and disposable tableware Huaxi Securities Co.Ltd(002926) it is estimated that the demand for degradable plastics is expected to exceed 1 million tons in 2023 in the next five years, the demand for degradable plastics in China is expected to grow rapidly. It is conservatively estimated that the demand will be 3.5-4.5 million tons in 2025
Sealand Securities Co.Ltd(000750) research report points out that driven by the plastic ban policy, predicts that by 2025, China’s total market demand for degradable plastics will reach 4.15 million tons, 9.23 times that of 2018, and the market space will be 83 billion at a unit price of 20000 yuan / ton
more than half of the concept stocks have a rolling P / E ratio of less than 30 times
According to the statistics of securities times · databao, there are more than 70 listed companies with degradable business. From the performance data of the first quarter of this year, the net profit of seven companies doubled, including Lecron Industrial Development Group Co.Ltd(300343) , Malion New Materials Co.Ltd(300586) , Anhui Wanwei Updated High-Tech Material Industry Co.Ltd(600063) , Hunan Yussen Energy Technology Co.Ltd(002986) , Jiangsu Sanfame Polyester Material Co.Ltd(600370) , etc.
Lecron Industrial Development Group Co.Ltd(300343) achieved a profit of 308 million yuan in the first quarter, an increase of 22 times year-on-year, mainly due to the effective release of the company’s polyvinylidene fluoride (PVDF) production capacity under the influence of the market situation of the new energy industry, bringing new profit growth points. The company mentioned in its annual report that 60000 T / a biodegradable polymer project is currently under construction.
From the perspective of valuation level, at present, more than half of degradable plastic concept stocks have a rolling P / E ratio of less than 30 times, of which 13 stocks have a rolling P / E ratio of single digits, such as Xinxiang Chemical Fibre Co.Ltd(000949) , Huafon Chemical Co.Ltd(002064) , Xinjiang Tianye Co.Ltd(600075) , Sinochem International Corporation(600500) , Xinjiang Zhongtai Chenical Co.Ltd(002092) 23456; , etc.
Xinxiang Chemical Fibre Co.Ltd(000949) rolling P / E ratio is less than 4 times, ranking the lowest. As the selling price of the main product spandex fiber increased compared with the same period of last year and the profitability improved, the gross profit increased significantly. The company achieved a profit of 1.365 billion yuan in 2021, a year-on-year increase of 15.33 times.
Kingfa Sci.& Tech.Co.Ltd(600143) is one of the enterprises with the most complete product range in the global new chemical materials industry. It is also the largest and most complete modified plastic manufacturer in the Asia Pacific region. According to the annual report, the company sold 79000 tons of fully biodegradable plastics in 2021.
Henan Jindan Lactic Acid Technology Co.Ltd(300829) at present, the main products are lactic acid, sodium lactate and calcium lactate. The annual production capacity of lactic acid and series products is 178000 tons, ranking the leading position in China’s industry. The company’s research projects are the key technology research and development and industrialization project of biodegradable polymer new material polylactic acid, and the technology research and development of starch based degradable new material is related to degradable plastics.
Ningbo Changhong Polymer Scientific & Technical Inc(605008) annual report shows that the Shanghai Pudong Development Bank Co.Ltd(600000) T / a full biodegradable thermoplastic Industrial Park PBAT / PBS / PBT flexible production project, the first 120000 T / a project in phase I, has been completed and put into production. In the first quarter of this year, the profit was 87 million yuan, a year-on-year increase of 49.16%.
Beijing Sanlian Hope Shin-Gosentechnical Service Co.Ltd(300384) is an international advanced supplier of complete polymer production technology. By the end of the first quarter of 2022, the newly signed contract amount of the company’s renewable materials and degradable materials business in 2022 had broken the level of new contract amount in 2021.
