Net profit increased by 5000%! The boom in this chemical industry segment is extremely high​!

Recently, Xinxiang Chemical Fiber disclosed its third-quarter performance forecast. Benefiting from the rising volume and price of main products such as spandex, it is estimated that the net profit attributable to shareholders of listed companies in the first three quarters will be about 1.23 billion yuan to 1.3 billion yuan, a year-on-year increase of 4746%-5022 %.

In addition to Xinxiang Chemical Fiber, the three-quarter performance forecasts of spandex production leaders Huafeng Chemical and Taihe New Materials are also quite eye-catching.

The agency believes that the overall demand for the spandex industry is strong, and the industry's prosperity continues to rise due to the impact of the return of foreign orders, the demand for stretch fabrics such as sportswear, yoga wear and casual wear, and some spandex for health and epidemic prevention. As the new production capacity has to be put into production at the end of the year, the shortage of spandex cannot be resolved in the short term. With the arrival of the traditional peak season of "Golden Nine and Silver Ten", the demand for spandex may become even tighter.

Spandex prices have increased by more than 100% during the year

It is understood that after more than 20 years of development, China has become the world's largest producer of spandex, with spandex production capacity accounting for more than 70% of the global production capacity. As a functional fabric, the market demand for spandex is increasing year by year.

Due to the strong demand in the industry and the continuous increase in product prices, domestic spandex companies have generally improved their profits, leading companies have accelerated their market share, and resources have gradually concentrated on leading companies, and the industry concentration has further increased.

According to industry insiders, with the continuous improvement of the national economy and the transformation of life consumption concepts, the application of spandex continues to expand, and the spandex content of the fabric continues to increase. In addition, spandex has a broad potential for differentiated development. At present, its application in medical, automotive interiors and other industries is still relatively small, and it is expected that it will usher in a broad market space in the future.

Net profit in the first three quarters is expected to increase several times

Currently, among the A-share listed companies, the major listed companies that take spandex as their main products are Huafeng Chemical, Xinxiang Chemical Fiber and Taihe New Materials.

On October 11, Huafeng Chemical, the largest domestic and second-largest spandex manufacturer in the world, disclosed its performance forecast for the first three quarters of this year. It is expected to achieve a net profit of 5.8 billion to 6.2 billion yuan attributable to shareholders of the listed company, an increase over the same period last year. 367.3% to 399.52%.

The company said that during the reporting period, the chemical industry's prosperity continued to rise and the market continued to improve. The company seized market opportunities, adjusted market strategies in real time, and strengthened internal management to improve quality and efficiency. The production and sales volume and sales price of the company's leading products have increased significantly compared with the same period last year, the overall gross profit margin has increased significantly, and the profitability has increased significantly year-on-year.

On October 12, Taihe New Materials disclosed its first three quarters performance forecast, and it is expected to realize a net profit of 710 million to 740 million yuan attributable to the parent, an increase of 289.31%-305.76% over the same period last year. Among them, the net profit attributable to the parent in the third quarter was 270 million yuan to 300 million yuan, a year-on-year increase of 362.92%-414.36%, a month-on-month increase of 2.66%-14.07%, and a single-quarter performance hit a record high.

The company explained that, driven by factors such as supply and demand, the price of spandex products has increased significantly; at the same time, the market demand for aramid products is strong, production and sales have increased significantly, and the company's profitability has increased significantly year-on-year.

Three leading companies actively expand production

As the spandex boom continues to rise, leading companies are actively expanding the production capacity of high-quality spandex and optimizing product structure.

Recently, Huafeng Chemical announced that the second phase of the 100,000-ton differential spandex project invested and constructed by the holding subsidiary Huafeng Chongqing Spandex has entered the commissioning stage in early September. Guosen Securities believes that after the project is officially put into production, the company will have a production capacity of 220,000 tons of spandex per year, which will rank first in the world, and the product structure will be further optimized.

Prior to the end of August, the company had disclosed its expansion plan and planned to raise 2.8 billion yuan for the expansion project with an annual output of 300,000 tons of differentiated spandex. The company said that after the completion of the project, it will significantly increase the production capacity of spandex products, thereby further optimizing the product structure, enhancing the scale effect, and increasing market share and competitiveness.

Xinxiang Chemical Fiber has a spandex production capacity of 100,000 tons per year, ranking among the top three in China. Recently, the company said when receiving investigations from institutional investors that the relevant projects are progressing smoothly and will be completed and put into production as planned.

It is reported that the first phase of the company’s 100,000 tons of high-quality superfine spandex fiber project with an annual output of 30,000 tons per year started in the third quarter of last year. The construction period is 18 months. The second phase of the fine-denier spandex fiber project with an annual capacity of 30,000 tons will start in the second quarter of this year. The construction period will be 18 months. It is expected to be put into operation in the second half of 2022.

Recently, Taihe New Materials stated on the investor interaction platform that the company's existing spandex effective production capacity is about 50,000 tons, and it is expected that by the end of 2022, the company's effective production capacity will reach about 90,000 tons.