11 Billion! The Chemical Fiber Giant Can Not Get Away From The 1400 Acres Of Land In Tongxiang.

New Feng Ming Group Limited by Share Ltd (hereinafter referred to as "Xin Feng Ming") announced today (June 8th) that the wholly owned subsidiary of Tongxiang Zhongyou Chemical Fiber Co., Ltd. (hereinafter referred to as "Zhongyou chemical fiber") intends to invest in the construction of new materials with its own funds or self raised funds, with a construction area of about 1400 mu. The project is located on the north side of Hangzhou Avenue, Tongxiang City Industrial Park. It has a total investment of about 11 billion yuan, including an annual output of 2 million tons, a total investment of 6 billion 550 million tons of direct spinning polyester staple fiber, a total investment of 1 million tons of functional differential fiber, and a total investment of 300 thousand tons of polyester film and other new materials 1 billion 450 million yuan, and the construction period of the project is expected to be 60 months.

New Feng Ming said that with the continuous improvement of the company's overall capacity, according to "one continent, two lakes" layout requirements, the company Zhou Quan base capacity exceeded 2 million 900 thousand tons. In order to further expand the Chau spring area, strengthen Chau spring industrial clusters and production forces, further enhance the company's profitability and improve the industrial chain structure, the company plans the investment. After the completion of the project, it will help improve the industrial chain structure, further enhance the company's profitability, and consolidate and enhance the industry status.

Insiders said that according to the current capacity planning, it is expected that in 2021, the new Feng Ming industry will jump into second of the industry with 5 million 800 thousand tons of filament production capacity, accounting for 13% of the total industry, showing a trend of strong and constant strength. In addition, new Feng Ming is building a total of 4 million 400 thousand tons of PTA capacity in two phases. After commissioning, it will achieve self-sufficiency of raw materials, enhance company competitiveness and enterprises' ability to resist risks.

Analysis shows that the core competitiveness of new Feng Ming lies in cost control. In 2019, the financial report also showed that the sales, management, financial and R & D expenses of new Feng Ming were 0.45%, 0.84%, 0.81% and 2% respectively. Management ability is evident. During the reporting period, the new chemical fiber business revenue was 28 billion 926 million yuan, up 7.21% compared with the same period last year. As of the end of the reporting period, the total production capacity of the new polyester filament reached 4 million 300 thousand tons. In 2020, the new growth line production capacity was estimated to be 600 thousand tons, which contributed to the improvement of its performance. The annual production of 2 million 200 thousand tons of PTA item in the first phase of the new Feng Ming project was put into operation in October 2019, all of which can meet the production self use and further reduce production costs. Profit space. In the future, the price of PX will go down after the domestic refining and chemical production capacity is put into operation, and the PTA profit is expected to further improve in the future. In the three quarter of 2020, new Feng Ming is expected to put 2 million 200 thousand tons of PTA into operation again. The company will adhere to the basic line of "PTA- filament" and extend the company's industrial chain.

Guoxin Securities analyst Gong Cheng said earlier that as the domestic private refining and chemical industry put into operation, PX's external dependence declined, and prices fell sharply. PX processing fees dropped to 400 yuan / ton at the end of 2019. From the PTA expansion of new Feng Ming, the PX price declines significantly, making the company profitable.

Analysis shows that with the domestic private refining and chemical industry put into operation, prices show a sharp decline. In 2018, domestic PX import dependency reached 60%, and PX accounted for a relatively large profit in the polyester filament industry chain. With the 2019 Hengli refining and chemical project put into operation, the price of PX dropped rapidly, and the processing fee of PX dropped to 400 yuan / ton at the end of 2019. New Feng Ming PX for outsourcing, costs accounted for 85% of PTA, from the company's PTA expansion, PX prices fell significantly better company profitability.

Gong Cheng believes that the price of polyester industry chain has been declining due to the impact of the fall of international crude oil prices. However, the upstream PTA and MEG prices are significantly higher than those of polyester, and the profits of the industrial chain will shift downstream. The profitability of new Feng Ming polyester filament will increase significantly. Downstream demand side, although the epidemic may affect polyester downstream demand, polyester demand is closely related to the national economy. In the long run, market demand will continue to grow with consumption upgrading. On the other hand, the market share of new Feng Ming capacity expansion will gradually increase, and the performance will continue to increase.

Oriental Securities researcher Zhao Chen pointed out that the downstream polyester terminal for textile and clothing, although affected by the epidemic, short-term demand has declined, but in the long term, with the increase of residents' income, global consumption will continue to grow. According to historical data, in the past ten years, the production speed of polyester filament in China has increased by about 10%, and in 2019 the capacity has exceeded 40 million tons. The core of this industry competition is the cost of competition. At present, only the leader has the ability to expand production, and small businesses can only continue to share market share. The current epidemic will objectively accelerate the trend of concentration of the industry to the leading companies.

Zhao Chen pointed out that the volume of polyester industry is as high as 40 million tons, and the volume of its upstream PTA is more than 30 million tons, which is basically the largest single product in the chemical industry, and the downstream is a partial consumption of textile and apparel. Unlike the real estate chain's large single products, the demand is far from the top. At the same time, the industry concentration degree is very low. The largest listed company has a market value of only about 20000000000. It is a typical large industry and small company. At present, all the new capacity comes from the top three enterprises, and the industry concentration degree is irreversible upgrading. Among them, the new Feng Ming has the strongest cost advantage, the highest ROE history and the lowest market share, only 11%, and occupies third of the industry. This also indicates great growth space. 。

According to public information, Tongxiang Zhong Heng Chemical Fiber Co., Ltd. was founded in February 2000. The company is located in zhouquan Industrial Park, Tongxiang City, Jiaxing City, Zhejiang province. It covers PTA (terephthalic acid), PET (polyester), polyester, spinning, blasting, import and export trade, and has been among the top 500 Chinese private enterprises, the top 500 manufacturing enterprises in China, and Zhejiang top 100 enterprises for many years. List of enterprises. The company landed on the A shares of the Shanghai Stock Exchange in April 2017 (stock code 603225).

New Feng Ming is the leader of the civilian polyester filament industry. Its main stock business is the development, production and sale of civilian polyester filament. Its main products are three kinds of polyester filament, POY (polyester preoriented yarn), FDY (full stretch yarn) and DTY (stretch textured yarn). The polyester filament is mainly used for silk garments at the early stage. With the development of various processing technologies, it has been extended to wool like, imitation hemp, cotton imitation and so on. In the field of clothing, it has developed into decorative, industrial and non fibrous areas. Its typical application areas and terminal products are:

Clothing: underwear, pajamas, shirts, skirts, jackets, suits, jackets, sportswear, neckties, headwear, scarves and so on;

Decoration: curtain, window curtain cloth, wall covering, tablecloth, tapestry, carpet, sofa cover, automobile interior decoration cloth, rain cape, umbrella, etc.

Bedding: bedspread, quilt, pillow towel, quilt cover, bedspread, mosquito net, cotton wool and so on.

Industrial products: sewing thread, tire meridian, conveyor belt, canvas, geotextile, filter cloth, tent, net and rope.

Non fibrous products: artificial suede, mainly used for fur coats, leather jackets, women's tops and so on.

According to the financial report, in 2019, the annual output of 4 million 300 thousand tons of new polyester filament is third, ranking third in the whole country. The capacity in 2020 and 2021 will reach 5 million tons and 6 million tons respectively, and the market share will be increased to 12.7%.

Aforementioned Oriental Securities researcher Zhao Chen also pointed out that in terms of profitability, new Feng Ming should be the most potential growth enterprise in the industry, and its market share has increased rapidly from 7% to 11% in the past 5 years. Looking forward to the future, the layout of the three major bases of new Feng Ming in Tongxiang Chau Quan, Huzhou Wuxing and Pinghu Dushan has basically taken shape. In the future, the new Feng Ming has the advantage of cost, so long as it keeps the pace of expansion, eventually it will become an oligopoly in the polyester +PTA industry and occupy the 30-40% market share. This also means that the ultimate profit will reach nearly ten billion.