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ST Yihua invested over 800 million yuan in PBAT resin and other material projects, and listed companies rushed to the beach!

 Last Update: 2022-08-27
 Source: Internet
 Author: User

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With the implementation of the "strictest plastic restriction order" in China, the degradable plastic market is regarded by the industry as ushering in a period of development opportunities.
Under this background, many listed companies have rushed to the degradable field

On the evening of February 25, ST Yihua announced that the company plans to invest in the construction of a 60,000-ton/year biodegradable new material project.
The main product is PBAT resin, and it can also produce other resin products
.
The total investment of the 60,000-ton/year production line is 807 million yuan, the sales revenue is expected to be 1.
496 billion yuan/year, and the total profit is expected to be 102 million yuan/year; the construction period is expected to be 15 months
.

In fact, the secondary market has already reacted in advance
.
In the past 10 trading days, ST Yihua has increased by nearly 40%
.
Among the Flush degradable plastic concept stocks, the top gainers in the past 20 days are Lianhong Xinke, Zhongtai Chemical, and Hengyi Petrochemical, with a cumulative increase of 51%, 33% and 31% respectively
.

Estimated annual revenue of 1.
5 billion

Specifically:

(1) This project is planned to be undertaken by Hubei Yihua Degradable New Materials Co.
, Ltd.
, a newly established holding subsidiary of ST Yihua.
The company's registered capital is tentatively set at 20 million yuan, and it is planned to be paid in place after the project is reviewed by the company's general meeting of shareholders
.

(2) The construction content of the project is designed according to 60,000 tons/year, the main product is PBAT resin, and other resin products can also be produced
.
PBAT, the full name of polybutylene adipate/terephthalate, is a thermoplastic biodegradable plastic, mainly used in agricultural mulching films, packaging bags, shopping bags and other fields
.

(3) In terms of project investment and income, the announcement disclosed that the total investment of the 60,000-ton/year production line is 807 million yuan, the sales revenue is expected to be 1.
496 billion yuan/year, and the total profit is expected to be 102 million yuan/year; the project construction period is expected to be 15 months
.

In order to control the further aggravation of "white pollution", "plastic ban" is becoming a common measure to protect the environment around the world
.
As a substitute for non-degradable disposable plastics, the degradable materials encouraged by the state have been vigorously promoted and applied, and the degradable material industry may enter a stage of rapid development
.

It is against this background that ST Yihua began to enter the field of degradable materials
.
The company stated that the raw materials PTA, AA, and BDO required for the proposed construction project have overcapacity in China and are produced in the neighboring provinces of Hubei Province
.
At present, most of the domestic products are sold to Europe and the United States, and the supply is in short supply.
With the implementation of the domestic plastic ban, it is predicted that the domestic demand will increase significantly in the future
.

At the same time, after the completion of this project, it can improve the company's industrial scale and comprehensive competitiveness in the field of fine chemicals, which is in line with the company's long-term development plan and development strategy, and will have a positive impact on the company's future financial status and operating results
.

However, ST Yihua also reminded the risk that the main raw materials of PBAT are PTA, AA and BDO, the downstream derivatives of petroleum.
At present, the PBAT project is developing rapidly and the demand for raw materials is strong, which may raise the market price of raw materials and lead to uncertainty of project benefits
.
In addition, the biodegradable polyester industry has a rapid development momentum, and this project will face more competitors.
At present, the implementation of the "plastic ban" policy varies across the country, and the degradable plastic consumer market still needs to be further cultivated
.

Listed companies grab the beach for degradable projects

In January 2020, the National Development and Reform Commission and the Ministry of Ecology and Environment announced the "Opinions on Further Strengthening the Control of Plastic Pollution", and then various national ministries and commissions followed up on the policies
.

In July 2020, the "Notice on Solidly Promoting the Control of Plastic Pollution" jointly issued by the National Development and Reform Commission, the Ministry of Ecology and Environment and other nine departments clarified that from January 1, 2021, in the built-up areas of municipalities directly under the Central Government, provincial capital cities, and cities under separate state planning In the shopping malls, supermarkets, pharmacies, bookstores and other places, catering take-out services and various exhibition activities, the use of non-degradable plastic shopping bags is prohibited, but it is not prohibited to connect roll bags, fresh-keeping bags and garbage bags for the time being
.

This is also known in the industry as the implementation of the most stringent plastic restriction order in history
.
In this regard, Haitong Securities believes that degradable plastics usher in a great opportunity for development
.
"The nationwide ban on plastics and plastics will be completed in three time periods: 2020, 2022, and 2025.

Among them, non-degradable plastic bags and disposable plastic tableware are the main targets for ban and restriction.
These two areas are expected to be Be the first to stimulate demand in the biodegradable plastics industry
.
”

"We believe that with the promotion of the plastic ban and plastic restriction policy, the industry demand will indeed usher in rapid growth in the next two years, and the PBAT market opportunities are promising, but with the substantial expansion of production capacity in the later period, the subsequent market competition will intensify, and the production capacity will be small.
, tail companies with high costs may face a crisis
.
” said an analyst at Haitong Securities
.

It is also in this context that many listed companies have recently increased the degradable market
.

Ruifeng High-tech announced on the evening of February 2 that the company plans to invest no more than 230 million yuan to build a PBAT (Phase II) project with an annual output of 60,000 tons of biodegradable polymer materials
.
In addition, the company plans to invest in the expansion of the ACR project with an annual output of 30,000 tons, and the project investment amount does not exceed 60 million yuan
.

On January 19, Hengli Petrochemical and Oerlikon Barmag Huitong held the signing ceremony of the PBS biodegradable plastic project with an annual output of 600,000 tons (click to read the details), marking the largest and most productive biodegradable new material project in Henggli.
Power settled
.

Dawn Co.
, Ltd.
announced on the evening of January 17 that the company plans to invest in the construction of a 120,000-ton/year biodegradable resin (PBAT) project, of which the first phase will build a 60,000-ton/year continuous polymerization production unit (click to read more)
.
China Textile Research Institute Co.
, Ltd.
has reached a strategic cooperation with the company on this project
.

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