①In the first half of the year, both the spandex and aramid industries experienced price declines. Tayho Advanced Materials Group's net income attributable to the parent company for the first half of the year was 11.7 billion yuan, a year-on-year decrease of 45.37%, and the gross margin decreased by 8.68 percentage points compared to the same period last year; ②The company's Q2 performance rebounded, with revenue and net profit increasing by 6.1% and 16% respectively; ③The company's battery aramid coating separator has achieved small-scale orders, and the new production line is under construction and will enter a period of capacity release in the future.
On the evening of today, Tayho Advanced Materials Group released its 2024 interim report, with the company achieving a revenue of 1.952 billion yuan in the first half of the year, a year-on-year increase of 0.55%; net income attributable to the parent company was 11.7 billion yuan, a year-on-year decrease of 45.37%. It is worth noting that the company's performance declined in the first quarter, while the second-quarter revenue and net profit increased by 6.1% and 16% respectively.
Securities News August 16th (Reporter Fang Yanbo) Although the impact of falling product prices on profitability still exists, Tayho Advanced Materials Group (002254.SZ) has seen a recovery in the second quarter from its performance.
Tayho Advanced Materials Group's business spans across various industry sectors such as green chemicals, high-end textiles, high-performance fibers, and new energy materials. It is China's first production enterprise for spandex, meta-aramid, para-aramid, and aramid paper. Currently, the company ranks 5th globally in spandex production capacity, 2nd globally in meta-aramid and aramid paper production capacity, and 3rd globally in para-aramid production capacity.
In the first half of this year, despite the recovery in the spandex industry, the imbalance between supply and demand due to newly added capacity in recent years has led to historically low product prices, resulting in continued weakness in the industry's price, profit, and other indicators.
Similar to the situation in the spandex industry, the demand for domestic meta-aramid for protection weakened in the first half of the year, and intensified industry price competition due to the eagerness of potential new entrants in the domestic market. Similarly, para-aramid also experienced a decline in product prices, against the backdrop of a slowdown in information and communications infrastructure construction and the gradual recovery of international leading supply.
Under this influence, Tayho Advanced Materials Group's overall gross margin in the first half of the year was only 18.19%, a decrease of 8.68 percentage points compared to the same period last year.
Regarding future expectations for the industry, in the interim report, Tayho Advanced Materials Group stated that the incremental expectations for the spandex industry in the second half of the year will be much greater than those in the first half, and prices are expected to gradually adjust at the bottom in the medium term; as for the aramid industry, the company believes that, in the absence of major changes in the supply and demand environment, with the development of the new energy industry and the lightweight transformation of the automotive industry, aramid still has considerable room for development, and the market size is expected to increase significantly.
In fact, the application of aramid materials in the new energy industry has always been a hot topic in the capital markets, especially the aramid-coated separator in Tayho Advanced Materials' new energy products, which has attracted the attention of many investors.
In its semi-annual report, Tayho Advanced Materials stated that aramid-coated separator is an emerging type of separator and is still in the early stage of development. However, it is one of the new products with great development potential in the lithium battery separator market. The company's SAFEBM aramid-coated separator has made good progress in projects such as power batteries, household energy storage batteries, low-temperature batteries, and semi-solid state batteries. Some customers have placed small batch orders, and new workshops and production lines are under construction.
The company believes that with the continuous highlighting of the advantages of aramid-coated separator and the commissioning of new production capacity, it is expected that the SAFEBM aramid-coated separator market will enter a period of capacity release in the next few years.