With the continued boom in a series of sectors such as real estate, home appliances and automobiles, the demand for plastic products also rose steadily, and the injection molding machine industry ushered in a wave of impressive recovery. Among them, Chenxiong Group (00057 ), Its share price since the end of 2016 all the way up, up nearly 70% so far.
Moreover, the company has just handed out a satisfactory interim results sheet.
Performance revealed the industry boom
Zhenxiong Group revenue growth both revenue growth, which increase the profitability of the domestic business is the main motive force .November 27, 2017, the company released its interim results announcement, for the six months ended September 30, 2017 a total revenue of 870 million Hong Kong dollars (Same below), an increase of 22% over the same period of last year. Net profit attributable to owners of the Company was RMB65.962 million, an increase of 210% over the same period of last year, and a proposed interim dividend of RMB0.03 per share.
Looking at the announcement, it found that the company's profit before tax was 93.55 million yuan, an increase of 111% over the same period of last year. However, the growth momentum was almost entirely from the businesses in Mainland China and Hong Kong. As shown in the figure below, the performance in the PRC increased by nearly 155% To 80.67 million yuan, the contribution of performance in Taiwan and other overseas countries accounted for relatively small and not much change.
The company said that in addition to its new products welcomed by the market, 2017 China's economic performance has brought even more surprises, first GDP growth turned up, is expected to reach 6.8-6.9% higher growth, while a public Economic indicators (including PMI) have reported success, especially in the automotive industry also ushered in a wave of soaring, so strong demand for the company's products, including two large-scale injection molding machine, sales more nearly doubled last year.
And it is also important to note that the company's transcripts are still affected by environmental protection. In August and September 2017, the Central Government strictly implemented environmental protection policies in various provinces and municipalities, rectified substandard factories and production lines, banned Due to the polluting process, many medium and small-sized manufacturing enterprises were basically shut down during the two-month period. As a result, the state of rectification affected the supply of parts and components and therefore affected the sales of the Company in the second quarter to a certain extent.
This means that the injection molding machine industry heat may be even stronger than expected.
Injection molding machine industry in the future
As one of the three major synthetic materials, plastic has been developing rapidly since its publication.With the plastic substitution of steel, the plastic substitution of non-ferrous metals, the plastic substitution of cement, and the progressive development of plastic substitution wood, plastics are widely used in various fields.
According to the data from National Bureau of Statistics of China, the output of plastic products in China was 7.268 million tons in September 2017, an increase of 2.8% over the same period of last year. From January to September, the total output of plastic products in China was 60.52 million tons, an increase of 5.6% over the same period of last year.
Statistics of the General Administration of Customs also showed that in October, China's export of plastic products reached 20 billion yuan, up slightly by 0.76% over the same period of last year; from January to October, China exported 9.516 million tons of plastic products, up 12.4% over the same period of last year; and its export value was 214.01 billion yuan , An increase of 13.8% over the same period of last year.
The plastic molding equipment is for plastic applications, the need for plastic and other new polymer materials processing technology and equipment, of which injection molding machine is an important branch in the field of plastic machinery, the United States, Japan, Germany, Italy, Canada Other countries such as plastic injection machine output accounted for the proportion of plastic processing machinery reached 60% -85%.
From a global perspective, the injection molding machine output value accounted for more than 40% of the total output value of plastic machinery, plastic machinery industry in China and the world plastic machinery industry's product composition is roughly the same, injection molding machine is also the largest output, the highest output, the largest export of plastic machinery products.
Downstream demand side of injection molding machines have risen one after another in recent years. Downstream applications of injection molding machines mainly include building materials, automobiles and parts, home appliances and 3C, packaging and warehousing logistics, etc. Real estate growth continued to be good since the second half of 2016, , Also led the sharp increase in the air conditioning industry boom, so demand for home appliances are equally strong, and then superimposed on the help of the automotive sector, ushered in the wave of injection molding machine industry rise.
The future of high-end modified plastics application expansion and stability of the downstream demand support, the injection molding machine industry in the future worth the wait. Modified plastic as a modified species, refers to the common plastic and engineering plastics, based on the filling, blending, enhanced And other methods of processing and modification, improve the flame retardant, strength, impact resistance, toughness and other aspects of performance, so a wider application.
The current application of steel than the only 30:70, well below the developed countries and the world average, with the economic development and improved plastic technology, this part of the domestic will have greater room for improvement.
In the alternative growth of plastics at the same time, the downstream areas still have considerable prosperity.First look at the field of home appliances, white lead enterprises pre-existing fluctuations in raw material prices and the RMB exchange rate against the US dollar gradually weakened, and gradually improve the gross margin, in this context The advantages of the leading white goods industry chain will continue to be optimized, and the market share will also be strengthened. The business climate may continue to be maintained.
Followed by the automotive sector, automobile production is still continuing to grow, and according to the requirements of the development of new energy vehicles, by 2020, 2025, 2030, vehicle quality than in 2015, respectively, by 10%, 20% 35% .This means that the proportion of plastic auto weight will continue to increase, modified plastics in automotive plastics from decorative parts to structural parts, functional parts continue to change, its share of the proportion of automotive plastic is also growing.
The automotive sector is destined to become the fastest-growing segment of consumption in the modified plastics industry.
In the field of building materials, the national infrastructure investment from January to October in 2017 was 11.31 trillion yuan, an increase of 19.6% over the same period of last year. The growth rate was higher than the growth rate of 17.4% in 2016 and 17.2% in 2015, showing an acceleration trend .
For the real estate started to slow down, in the near future will still be under great pressure, but the mainstream of the stock is still relatively inadequate housing prices, overlay government grants for the end of the year, short-term land transactions or will continue high for the subsequent investment And started to provide support.
Since the future of the injection molding machine industry is not pessimistic, then the industry leading - Haitian International (01882) is still worth a look.
Big advantage is obvious
Haitian International, as the world's largest injection molding machine manufacturer, currently has a market share of nearly 40% in the domestic injection molding machine market and a market share of more than 50% in the mainframe area. The company owns Mars series, Changfei series and Jupiter series And other series of injection molding machine products, including the downstream automotive, home appliances, 3C, home and other industries.
The company's competitive advantage is more prominent, the annual sales of nearly 10 billion scale, compared to rivals 10-20 billion in sales volume, the scale advantage is obvious, and the company in the brand, technology, management, etc. have significant Advantage.
I believe Haitian International injection molding machine industry in the considerable future development, the benefit is the most direct, it is worth attention wave.