Meltblown fabric prices have fallen but still make a profit, Non-woven fabric heat

    With the stabilization of domestic covid-19, the mask industry chain, which was once sought after by the market,   continued to cool   down. Previously, it has been reported that the price of meltblown cloth plummeted by more than 90%. But even so, the performance of most listed companies engaged in the production of melt-blown fabrics may have fallen short, and some companies'   performance in the first quarter of this year has even surpassed that of last year.

   Although the current market is gradually getting colder, domestic melt-blown fabric manufacturers still make a profit,   but for the future market, most companies say it is unpredictable, depending on the development of the epidemic. Zhang Rui, director of the sales department of a non-woven fabric company in Anhui, said that for the entire industry, the current market is not as hot as in the previous two months, but many types of non-woven fabrics are still in short supply, such as spunlace for the production of fast-moving consumer goods , Super fiber, etc. are still in an increasing state, and the heat is expected to continue until the end of this year.

◆The price plunge is still profitable◆

With the stabilization of the domestic epidemic situation, the market for meltblown fabrics has gradually cooled

"For low-end products, the prices of products below level 95 have fallen sharply, but the prices of products at levels 95 and 99 are still considerable, and the profits are also considerable. (Under level 90) low-quality products have very little profit and no one at low prices. Yes, high-quality products are not a problem." The staff of Guoen (002768.SZ) said, "The company produces melt-blown materials, so the production cost of melt-blown cloth is low, and it has a strong ability to withstand price drops. This is other Many melt-blown fabric manufacturers cannot compare."

Guoen shares announced in May this year that it plans to invest in the construction of 20 meltblown fabric production lines. According to the staff of the manufacturer, the first phase has been completed and put into mass production.

Regarding the investment plan of the remaining production line, the staff member said, "It depends on the overall market situation of the first phase. It is impossible to say that there is no market. (The company) will still do this. The company will announce the specific progress of the project. Next, if the investor is the boss, dare to build the remaining production line, everyone should take a look, the company should also be responsible to the investor."

The staff of Midland New Materials (300586.SZ) in South China said, "The company's orders are still relatively full. Before the epidemic, the price of melt-blown cloth was about 20,000/ton, and all have earned. The current price is Between 50,000 and more than 100,000 yuan per ton, the gross profit margin is also very high, and the specific price depends on the size of customer orders. In the case of high gross profit, the profit contribution of the company's main business in the first half of the year is still very large."

Regarding the company's performance in the second half of the year, the above-mentioned staff said, "It depends on the epidemic situation. The price of the (meltblown) market in the later period is really unpredictable in the second half of the year. The situation is changing, there are risks but there are certain opportunities. ."

◆ The performance in the first half of this year may have been sacked ◆

In the process of the reporter's bottom-up survey, the listed companies are not as oblivious to their performance, but combing the public information shows that the performance of related companies in the first half of this year may have fallen short.

On April 22 this year, Yanjiang Co., Ltd. (300658.SZ) mentioned in its reply to the Shenzhen Stock Exchange’s concern letter that in the first quarter of 2020, the company’s meltblown non-woven fabrics had a profit of about 17 million yuan, accounting for about 45% in 2020. In the first half of the year, melt-blown non-woven fabrics will have a greater impact on the company's performance.

According to the above announcement, Yanjiang shares began to sell medical melt-blown non-woven fabrics in April. According to its calculation on April 22, taking into account the order and delivery conditions, production capacity, production schedule and other factors, the business is expected to The annual performance impact will exceed 32.923 million yuan, accounting for 40% of the net profit for the full year of 2019.

Research institutions have also been relatively optimistic about the performance of related listed companies. On April 24, Anxin Securities issued a research report saying that the price of melt-blown polypropylene rose sharply, which is expected to increase considerable profits for Guoen shares. The annual net profit will reach 570 million yuan.

On June 22 this year, the trial registration system of the non-woven fabric company Jinchun Stock GEM was accepted. The company's main products are spunlace, hot air and filament ultra-fine fiber non-woven fabrics. It is used for the production of disinfectant wipes, masks and other civilian and medical Raw materials for protective products. Although Jinchun's non-meltblown nonwoven fabrics were affected by the epidemic, the company's demand for other nonwoven fabric products also rose sharply.

According to the prospectus, in the first quarter of this year, Jinchun’s sales revenue increased by 13.82% compared with the same period last year, and net profit attributable to its mother increased by 206.10% year-on-year. In addition, Jinchun expects that in the first half of this year, the company's operating income will increase by 29.30% to 33.47% year-on-year, and its net profit will increase by 241.80% to 266.21% year-on-year. It is expected that the company's full-year net profit in 2020 will increase significantly from 2019.

◆ The popularity of non-woven fabrics is expected to continue until the end of this year ◆

Meltblown fabric is a type of nonwoven fabric, also known as "nonwoven fabric", which refers to fabrics that do not require spinning and weaving. The nonwoven fabric industry originated in Europe and the United States in the 1950s and began in the 1970s. In the end, it was introduced into China for industrial production. During the development process, non-woven fabrics evolved various processes such as spunbonding, needle punching, spunlacing, chemical bonding, thermal bonding, air-laid, wet method, melt-blown and so on.

Because it is the core material of medical protective masks, melt-blown cloth is well known to the public, and even when the epidemic is serious, it is even "difficult to find a cloth". However, before the epidemic, meltblown fabrics were relatively niche in the nonwovens industry. The data shows that the output of spunbond nonwoven fabrics is 3.0943 million tons in 2019, accounting for 49.80% of the total output of nonwoven fabrics. In the same period, the output of meltblown nonwoven fabrics accounted for only 1.07% of the total nonwoven fabrics. .

Zhang Rui, director of the sales department of a non-woven company in Anhui, said that at present, the market for non-woven fabrics is not as hot as in the previous two months, but many types are still in short supply, such as spunlace and ultra-fiber used for the production of fast-moving consumer goods. Demand for non-woven products is still increasing. Affected by the epidemic, the demand for non-woven fabrics has soared abroad, and there is a shortage of foreign goods. There are also many purchase orders for non-woven fabrics in China.

Zhang Rui said that the popularity of the entire market is expected to continue until the end of this year, but the market in 2021 and beyond can not be conclusively concluded. After all, in the absence of the epidemic, the non-woven industry directly related to the epidemic only meets the daily medical care industry. After the epidemic, consumers’ consumption behaviors, habits, and awareness will change, and non-woven fabrics of daily fast-moving varieties will have a tendency to continue.

Everbright Securities Research believes that in the short term, the epidemic will catalyze the demand for spunlace and melt-blown non-woven fabrics. In the future, the government and hospitals will also increase the reserves of protective products, and residents' demand for cleaning supplies such as disinfecting wipes is also expected to increase. Will catalyze the growth of demand for non-woven fabrics.

In the future, the growth of demand for downstream medical products, personal health care and other products will drive the continuous growth of non-woven fabrics.