EVA material manufacturers will continue to benefit

On October 24, the “Dual Carbon” work opinions issued by the Central Committee of the Communist Party of China and the State Council proposed to speed up the optimization of building energy structure and launch rooftop photovoltaic activities; on October 20, the National Energy Administration issued a notice requiring all grid companies to meet the conditions for grid connection Wind power and photovoltaic power generation projects in China must take effective measures to ensure timely grid connection

The industry believes that driven by this series of policies, the photovoltaic industry will usher in a period of rapid development, and the demand for ethylene-vinyl acetate copolymer (EVA) photovoltaic materials and EVA film in the industry chain will surge.

Since the beginning of this year, global energy problems have become increasingly prominent.

In fact, 2021 can be said to be a big year for photovoltaic demand in China

It is worth noting that the total installed capacity of household photovoltaic projects newly included in the national financial subsidy scale this year has increased significantly.

From a global perspective, according to the China Photovoltaic Industry Association, the global photovoltaic market will continue to expand at an accelerated pace in 2021, with new installed capacity expected to reach 150-170GW, and an additional 270-330GW in 2025

Zhongtai Securities pointed out that the potential demand of the photovoltaic industry is very high, and the current industrial chain is in an expansion stage in terms of unit profit and total profit

Especially in the EVA industry chain, the rapid development of the photovoltaic industry will drive a surge in demand for EVA photovoltaic materials

From the perspective of supply, EVA photovoltaic materials have high production barriers, long expansion periods, and many restrictions on conversion.

However, relative to the demand of 630,000 tons, the domestic EVA photovoltaic material supply and demand gap is obvious

In the context of supply shortage, domestic EVA photovoltaic material prices are also rising

With the surge in demand for EVA materials and the sharp rise in prices, the performance of listed companies with EVA materials and EVA film production capacity has also been very impressive this year, and their stock prices have reached record highs

Since the beginning of this year, the market value of Oriental Shenghong, which acquired Serbang, the largest EVA producer in China, has approached 200 billion yuan, hitting record highs, and Levima's share price has also risen 520%

On October 28, the performance report issued by Oriental Shenghong showed that the company achieved operating income of 25.

It is understood that at the beginning of July this year, Oriental Shenghong announced that it planned to acquire 100% equity of the petrochemical asset Serbon under the actual controller Miao Hangen at a price of 14.

Under the background of expected tight supply and demand in the future, the EVA industry will still maintain a relatively high level of prosperity
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Industry insiders believe that after the completion of the acquisition, Oriental Shenghong will benefit from the bright prospects of EVA photovoltaic materials, and its profitability is expected to increase substantially
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Therefore, many institutions are also optimistic about the company's development prospects
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　　It is understood that in the last 90 days, Oriental Shenghong has given ratings from 16 institutions, 14 with buy ratings and 2 with overweight ratings
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