Can Jinfa technology use degradable plastics to realize the return of the king?

May 07, 2022

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Degradable plastic production expansion release, strong performance outbreak to be tested

During the period when the share price of Jinfa technology fell endlessly, the market for new materials such as degradable plastics and carbon fiber ushered in favorable policies. Especially degradable plastics. On September 15, 2021, the national development and Reform Commission and the Ministry of ecological environment jointly issued the action plan for plastic pollution control in the 14th five year plan (hereinafter referred to as the plan), which officially launched the national starting gun for the remediation of white pollution (plastic pollution) in the next five years.

It is also emphasized in the plan that the alternative products of plastics should be promoted scientifically and steadily. Fully consider the impact of bamboo and wood products, paper products, degradable plastic products and other resources and environment in the whole life cycle, and improve the quality and food safety standards of relevant products. Carry out research on the degradation mechanism and impact of different types of degradable plastics, and scientifically evaluate their environmental safety and controllability.

Affected by this favorable policy, the share prices of degradable plastic concept stocks such as COFCO technology and Ruifeng Gaocai rose to varying degrees. Interestingly, the favorable policies came out, but Goldilocks did not rise. The stock price was as stable as Mount Tai and continued to consolidate. Many investors raised a series of questions about whether blonde technology has made degradable plastics and whether it attaches importance to degradable plastics

In fact, Jinfa technology has a layout in terms of degradable plastics, and its production capacity is being expanded. In addition, the production capacity from degradable plastics is continuously releasing. However, the revenue from degradable plastics accounts for less than 10% of the total revenue, which is not enough to bring strong support to the company.

Specifically, in terms of sales volume in the first half of 2021, Jinfa technology’s new materials sector achieved a sales volume of 54800 tons of finished products, a year-on-year increase of 47.92%. Among them, the sales of biodegradable plastic products were 44100 tons, with a year-on-year increase of 40.32%; In terms of performance, in the first half of 2021, the revenue of the new material sector led by biodegradable plastics, carbon fiber and special engineering plastics was 1.365 billion yuan, a year-on-year increase of 69.44%, accounting for about 7.08% of the total revenue; In terms of capacity under construction, in the first half of 2021, Jinfa technology put 60000 T / a PBAT into operation, and the PLA capacity under construction is 30000 T / A, which is planned to be put into operation before the end of 2021. It can be predicted that in 2021, Jinfa technology will release its degradable plastic production capacity compared with previous years.

Investors should note that although the production capacity of Goldilocks degradable plastics will be released in 2021, it remains to be seen whether it will bring greater profits to the company. Especially in the context of large fluctuations in the price of raw materials and the intensification of industrial competition caused by the collective production of the industry.

According to the management of Jinfa technology, in the first half of 2021, the profitability of degradable plastics decreased due to the superposition of factors such as commodity price fluctuation and freight rise. In terms of the production of industrial competitors, in 2021, like Jinfa technology, 10000 tons of PLA of Jindan technology and 60000 tons of PBAT of Ruifeng high material entered the production stage. Among them, the 60000 ton PBAT of Ruifeng Gaocai is expected to be completed and commissioned by the end of September, and the one-step PLA product business with successful pilot test.