Jinghua New Materials: China's leading manufacturer of masking tape and adhesive materials
The company is mainly engaged in R&D, production and sales of all kinds of adhesive materials. It is one of the leading masking tape manufacturers and well-known adhesive material manufacturers in China. The issuer's products are mainly used for paint shielding, bonding, fixing, protection, conductivity and insulation in the fields of building decoration, automobile manufacturing and automobile beauty, electronic and electrical products manufacturing, furniture manufacturing, stationery, packaging, shoe materials, aviation, ships, high-speed rail, etc. Judging from its main business revenue, the company's main varieties are concentrated on masking tape, electronic adhesive tape, and cloth adhesive tape. In 2016, the sales of the three accounted for 88.61% of the company's total sales. From 2014 to 2016, the contribution of the company's three categories of products to the overall gross profit of the main business remained stable, and in 2017, the gross margin of H1 masking paper adhesive tape declined slightly.
Future highlights:
(1) The products are widely used and the downstream industry has a large market space. The company's industry continues to develop steadily, and high-end, functional adhesives have good prospects for development. From 2014 to 2017, H1's main business revenue accounted for more than 98%. The main business was outstanding, and the market growth was good.
(2) With the advancement of the fund-raising project with an annual output of 132 million square meters of functional tape, the company will produce an additional 132 million square meters. It is expected that each product line will be produced between 2021 and 2022. After full production, the company's overall production capacity will increase by about 43% compared to the current production capacity, and the compound annual growth rate (five-year production) is about 7.48%, expanding the product market share.
(3) Duct-based hot melt adhesive tape, one of the company's main products, is mainly used in the packaging and stationery sector. In the express delivery industry, the consumption of packaging tape used by express delivery in 2015 was 16.985 billion meters, up 5.535 billion meters from 11.45 billion meters in 2014. The express delivery industry is expected to grow from 20.7 billion units in 2015 to 70 billion units in 2020, with an average annual growth rate of 27.6%. With the rapid development of the domestic logistics industry, demand for packaging continues to rise, demand for duct tape also continues to rise, and the market prospects are broad.
Risk warning: rising raw material prices, risk of performance fluctuations, fund-raising projects falling short of expectations