With the continued high boom in real estate, home appliances, and automobiles, benefiting from the recovery of downstream industries, demand for plastic products has also steadily increased. Although Germany and Japan have mastered high-end advanced large-scale and electric injection molding machines, domestic injection molding machine companies The competitiveness has been continuously strengthened, and it has become the company's new growth driver, struggling to catch up to occupy the global high-end market.
Plastic product output increases steadily but per capita consumption is low
From 2009 to 2017, China's plastics production grew at a CAGR of 6.8%. In 2017, the industry output reached 75.155 million tons, an increase of 3.4% year-on-year. In recent years, the output of plastic products has maintained a steady growth.
In 2014, the average per capita plastic consumption in China was about 54KG. The per capita plastic consumption was far lower than the 145KG (2010 data) for North Americans and 132KG (2010 data) for Western Europe. Shanghai Securities believes that the demand for China's plastic products industry remains It will rise steadily, and the output of the industry will continue to rise.
Downstream consumption upgrades and innovative industries bring new demand
The application industries downstream of the injection molding machine include building materials, automobiles, home appliances, packaging, 3C industry, toys and many other industries. It basically covers the entire downstream manufacturing industry and is closely related to the overall macroeconomic operation. Injection molding machine downstream applications account for a relatively large number of industries including Automotive, Home Appliances, 3C Industry.
With the increasing demand for lighter vehicles, the coverage of automotive plastic products has become wider and wider. It is reported that in Germany, the United States and France, and Japan, the automobiles are up to 300-365 kg, 220-249 kg and 126-150 kg respectively in plastic composite materials. , which accounted for 22.5%, 16.5%, and 10% of the total vehicle volume respectively, while China's nearly 90-100 kg, accounting for less than 8% of the total, is much lower than the developed countries. With the continuous development of the automotive industry, the future automotive plastics market Demand remains strong. Shanghai Securities predicts that by 2020 China's total auto plastic consumption will reach 8.32 million tons, a compound growth rate of 37%.
Not only can plastics be used on mobile phones, but also the use of plastics in other consumer electronics products is increasing. The demand for plastics in the 3C industry has remained high, and computers, communications and other electronic devices were manufactured before March 1818. Fixed-asset investment in the industry grew by 15.4% year-on-year.
Update demand becomes the support of the industry's steady demand
Shanghai Securities Survey believes that the injection molding machine has a service life of 5-10 years, but the frequent use and continuous emergence of downstream products will increase the precision of injection molding machines and shorten the life of injection molding machines by 3-5 years. 2010-2011 is the peak of injection molding machine sales. In 2010, it will usher in explosive growth and sales will increase by more than 60%. The service life of 2016 will soon reach and the downstream manufacturing investment will bottom out. The demand for injection molding machines will come soon. Shanghai Securities believes that the update of injection molding machines is very important. The support point makes the development of the injection molding machine industry more stable.
Emerging market rises steadily
Benefiting from the national 4 trillion investment policy, China's injection molding machines have been steadily growing. The compound plastics market capacity growth rate for the period of 2010-2016 was 4.29%, and the market size in 2017 reached 45 billion yuan, a year-on-year increase of 16.5%. China is expected to be 2019 Injection molding machine accounts for one-third of the global market, and the compounding growth rate of China's injection molding machine market is 6% from 2017 to 2020, and the market size will reach 53.6 billion yuan in 2020.
With the emerging of emerging markets, demand and production of plastics in emerging markets are expected to rise. Taking India as an example, Shanghai Securities believes that per capita plastic consumption in India is expected to increase from the current 11KG to 30KG in 2020, and India’s plastic production will double in 2018. It is expected to grow from 7.5 million last year to 15 million tons.
The company is moving toward the high-end market and continuously enhances its global competitiveness
Although Europe and Japan occupy the high-end market of injection molding machines in the world, Chinese companies are struggling to catch up and invest heavily in R&D under the support of national policies. Some excellent companies already occupy the mid-range global market, and some of China's leading injection molding machines have entered the world's forefront. Columns such as Haitian International, Yizhimi, etc. Haitian International, Ishmi and other injection molding machine companies have increased their own competition, the scale has continued to grow, and corporate net profit has also continued to grow.
In recent years, the import layer of China's injection molding machines continues to decline, with a compound growth rate of -4.08% for 2010-2017, and a compound annual growth rate of -3.21% for imports. China's export volume of injection molding machines is increasing from 2010 to 2017. The compound growth rate was 9.12%, and the compound growth rate of exports was 9.38%. In 2010, the trade deficit of China's injection molding machines was -1.993 billion yuan. By 2017, the trade surplus was 2.851 billion yuan, which basically showed a year-on-year increase. Shanghai Securities believes that from the deficit to the surplus China's injection molding machine products already have core competitiveness and have been recognized by foreign customers.
Summary: Continuing consumption increase + downstream consumption upgrade + industry update demand pushes the injection molding machine market to rise steadily. With the continuous increase in the competitiveness of China's domestic injection molding machine companies + support from government policies + continuous innovation in R&D, gradually deploy the global market and continue to Buy in the high-end market, the future will be the birth of a new injection molding machine leading enterprises.
