On October 9th, Qifeng Xincai (002521) shares suffered the biggest one-day decline of the year, falling more than 8 per cent at one point in intraday trading. Qifeng Xincai promptly replied to investors that the company's current production and operation is normal and there are sufficient orders on hand. Just after that day, Qifeng Xincai issued a particularly bright performance forecast, which is expected to increase by about 40 times in the first three quarters of this year. The front and back contrast has attracted the attention of investors.
According to disclosure, Qifeng Xincai is expected to make a profit of 150 million yuan to 160 million yuan in the first three quarters, an increase of 3935.51% Murray 4204.55% over the same period last year, of which 100 million yuan to 110 million yuan is expected in the third quarter. Qifeng Xincai said that during the reporting period, customer demand was strong, and the company's production and sales volume increased significantly. At the same time, the price of major raw materials decreased and the cost decreased. And according to the market demand, the company continues to optimize the product structure, effectively promote cost reduction and efficiency measures, and further enhance the competitiveness of products.
Qifeng New material mainly produces high-grade decorative base paper, including decorative base paper, latex paper and so on. It is understood that since the second half of the year, the paper industry has slowly recovered, of which special paper is the first to achieve a breakthrough. Compared with Qifeng Xincai's annual report last year, although the net profit of 8.4758 million yuan stood firm, it fell by 94.87% compared with the same period last year, ranking "at the bottom" in the papermaking industry, and this performance soared 40 times to become the dark horse of counterattack. Judging from the stock price performance, the share price of Qifeng Xincai has risen about 50% so far this year, ranking in the forefront of the papermaking sector.
It is understood that in recent years, the overall growth rate of the decorative base paper industry is relatively fast, and the industry has a relatively obvious import substitution effect, imported products gradually withdraw from the Chinese market, and the localization rate is gradually improved. At the same time, thanks to the growing demand of the downstream industry, the products of the decorative base paper industry chain are increasingly favored by end consumers.
A few days ago, Huawang Technology, which is also mainly engaged in decorating base paper, said at the performance presentation that the company is currently in a sufficient number of orders-on-hand, and the capacity utilization rate is at a high level. At the same time, the company's "annual output of 180000 tons of special paper production line expansion project (first phase)" 80, 000 tons of the main production line has reached the scheduled state of use in June 2023, the current production line is stable.
With the growth of demand, the current decorative base paper industry is accelerating capital operation and increasing the layout of the industrial chain. At present, Qifeng new materials are promoting a fixed increase, and it is proposed to introduce nuclear titanium dioxide into upstream enterprises to supplement the cost-side layout. On September 5, Qifeng updated the fund-raising prospectus, drawing up an increase of no less than 390 million yuan and no more than 549 million yuan, and a new 200000-ton special paper project (first phase) to expand production. After the implementation of the project, the production capacity of decorative base paper will be increased by 80, 000 tons, and then the production capacity of decorative base paper will reach 504000 tons. It is estimated that after the project is completed and fully reached production, the annual sales income is 800 million yuan, the net profit is 63.5416 million yuan, and the gross profit margin is 18.38%, which is higher than the gross profit margin of the company's decorative base paper series products.
Titanium dioxide is the main filler of decorative base paper, and the cost of titanium dioxide accounts for about 40% of the production cost of Qifeng new decorative base paper. It has been revealed that in terms of cooperation, Qifeng new materials have launched 80-100 new types of decorative base paper products every year to meet the differentiated needs of the market for decorative base paper. In order to shorten the development cycle of new products, medium nuclear titanium dioxide needs to cooperate with Qifeng new materials to develop customized titanium dioxide needed for new products, so as to reduce the cost of research and development. After the new products of Qifeng new materials are successfully developed and put on the market, the customized titanium dioxide developed for its new products should be purchased exclusively as raw materials.
Qifeng Xincai said that through this strategic cooperation, the company introduced CNR titanium dioxide into the application technology of titanium dioxide based on the surface electrical characteristics of titanium dioxide to improve the uniform distribution of titanium dioxide in decorative base paper and the process of high retention of titanium dioxide in decorative base paper. and cooperate in high-end customized titanium dioxide research and development, new product research and development, raw material purchase and marketing and market expansion. The two sides jointly explore the development model of the whole industry chain from titanium dioxide to decorative base paper. Jointly create "Qifeng-China Nuclear" high-end decorative base paper brand.
According to the analysis of the industry, from the perspective of the pattern of the decorative base paper industry, at present, the production capacity concentration of enterprises at the head of the Chinese market continues to improve, while the market requirements for the quality of decorative base paper are further improved, and the demand for high-end decorative base paper will be further expanded. In addition, Chinese enterprises accelerate to go to sea, and under the opportunity that the overseas market space is further opened, Chinese decorative base paper enterprises with higher product quality and can directly participate in international competition will have better development prospects.
