Analysis of the operating conditions of the GEM IPO of Huamao Weiye on the Shenzhen Stock Exchange

Mondo Finance Updated on 2024-02-08

Online article of listed companies in China.

1. Company profile

Huamao Weiye Green Technology Co., Ltd. *** hereinafter referred to as "Huamao Weiye" or the company) is a fine chemical enterprise advocating the concept of "green chemistry" and focusing on the innovation and research and development of green chemical synthesis technology at the intersection of multiple disciplines, and is committed to solving the "three wastes" problem in chemical synthesis from the source of reaction, with the vision of becoming an influential global green and low-carbon industrial chain technology support platform.

Relying on the core technology, the company has formed a unique idea and method of research and development of green chemical synthesis process, explored and designed seven types of chemical reaction types that can achieve green synthesis process routes, and has outstanding ability to carry out green transformation of chemical industrial preparation, which constitutes an important engine and core competitiveness for the company's rapid development.

At present, the company's commercialized products mainly include a variety of catalysts used in the field of polyurethane and solvent products NMMO used in the field of lyocell fiber, among which the global market share of DMDEE in polyurethane catalyst has reached the first place, and NMMO has achieved import substitution in the year of product launch, which has strongly promoted the development of China's lyocell fiber industry. The company can also provide epitaxial services of green chemical synthesis technology to assist customers in the chemical industry in the green transformation of their products.

Second, the industry prospects

According to the "Industrial Classification of the National Economy" (GB T4754-2017), the industry in which the company is located belongs to the "C26 chemical raw materials and chemical products manufacturing" of "C manufacturing".

At present, fine chemical industry is one of the most dynamic emerging fields in the chemical industry, and its products cover all aspects of social and economic life, and are widely used in medicine, pesticides, fuels, electronic materials, food additives, aerospace, automobiles, machinery, new building materials, new energy technology and environmental protection. Due to the irreplaceable nature of fine chemicals, their application scope continues to expand in depth, and the rapid development of the fine chemical industry has become the development trend of the industry. After more than 30 years of rapid development, China's fine chemical industry has made great progress, and the scale of China's fine chemical market will exceed 5 in 20215 trillion yuan, with a compound annual growth rate of 8%.

The proportion of fine chemicals in the total output value of the chemical industry, that is, the level of refinement rate, is an important indicator to measure the level of science and technology and the degree of economic development of a country or region. At present, China's overall refinement rate has increased to about 45%, but compared with the 60%-70% refinement rate of developed economies such as North America, Western Europe and Japan, China's refinement rate still has a lot of room for improvement.

Polyurethane (PU) is the full name of polyurethane, which is a general term for macromolecular compounds containing repeated urethane groups on the main chain, and is an organic polymer material that reacts with polyisocyanate and polyol and has multiple urethane segments, known as the "fifth largest plastic".

China's polyurethane consumption demand is strong, and the scale is increasing rapidly. In recent years, with the continuous expansion and deepening of polyurethane applications, polyurethane products have achieved rapid growth in consumption in many fields such as construction, electronic equipment, new energy and environmental protection. According to Zhiyan Consulting, in 2021, China's polyurethane production and consumption will be 15.32 million tons and 12.63 million tons, respectively, with a compound annual growth rate of 675% and 402%。

In 2020, the global output of polyurethane products was about 23.19 million tons, of which China's polyurethane products output was about 14.7 million tons. According to **, by 2025, the global and Chinese production of polyurethane products is as follows:

Lyocell products are biodegradable materials prepared by the lyocell method using lignocellulose as raw material and NMMO as solvent. Before the launch of the company's NMMO products, the NMMO solvent used in the production of lyocell fibers in China needed to be imported from abroad, and the main source of NMMO that could provide NMMO was APL from India.

From China's point of view, lyocell fiber belongs to the national strategic emerging industry, advanced technology and equipment, green environmental protection, and can realize resource recycling, in line with the development direction of the national "14th Five-Year Plan", and is listed as the key development direction of green manufacturing in "Made in China 2025".

In 2021, China's lyocell fiber import volume will be 8890,000 tons, a year-on-year increase of 1566%, export volume is 0780,000 tons, a year-on-year increase of 6303%, China's apparent demand reached 17610,000 tons, China's demand for lyocell fiber is entering a period of rapid growth, and the international market has been opened.

According to the "2021 Annual Report" of Sanlian Hongpu (300384), from the perspective of consumption upgrading, if only the demand for high-end fibers is met, the demand for lyocell fibers in China is about 1.08 million tons; If the cost-effective substitution demand can be met, the demand can be expanded to 4.45 million tons. In 2018, the global demand for lyocell fiber was about 1 million tons per year, and it continues to increase steadily at an annual growth rate of 16-18%.

3. Industry policy

The issuer is in the fine chemical industry, and its main products are used in downstream fields such as polyurethane industry and lyocell fiber industry. In recent years, various ministries and industry organizations have issued a number of policies and plans to encourage and support the fine chemical industry and downstream industries.

The national policies of "green manufacturing", "dual carbon goals" and "dual control of energy consumption" have set higher barriers to the development of the chemical industry, and also put forward higher requirements for the low-carbon environmental protection, energy conservation and emission reduction and green production technology level of chemical enterprises. The chemical industry is an important part of the raw material industry, and the country has integrated the raw material industry for the first time to prepare a plan, which has raised the development of the raw material industry to a new strategic height. The company's development plan is in line with the direction of national policy encouragement, positioning high-end products, key raw materials and core technologies independently and controllably, and promoting the green and low-carbon development of the industry. The company's technology and product reserves are in line with the key technology and key material innovation direction of the national plan. The raw material industry, which has entered a new stage of high-quality development, has created a good policy environment and valuable strategic development opportunities for the company's development.

Some recent industrial policies:

Fourth, industry competition

According to the list of the top 50 global chemical companies in 2022 released by Chemical and Engineering News, the world's top chemical companies are still dominated by European, American and Japanese companies, occupying most of the world's high-end product market.

China's fine chemical enterprises are mainly private enterprises, with low market concentration and small production capacity, so they are mainly concentrated in the low-end market and face fierce market competition. However, with the rapid development of China's fine chemical industry, a number of large-scale fine chemical enterprises such as Wanhua Chemical, Zhejiang Longsheng, and Xinhecheng have emerged.

In the field of polyurethane, the global tertiary amine polyurethane catalyst manufacturers are good at producing different categories, and the industry as a whole maintains orderly competition and mutual penetration. Overall, the core manufacturers of the first echelon include Huntsman, BASF, etc., which occupy a dominant position.

In the field of lyocell fiber, the localization of NMMO, a key raw material, has been one of the key factors restricting the development of the industry, and the launch of the issuer's products has solved the problem of domestic NMMO's dependence on imports, which plays an important role in promoting the development of the industry. At present, the issuer is a major global producer of NMMO, with a domestic market share of 51 in 20211%。With the gradual completion of the issuer's production line and the implementation of the fundraising project, the issuer will occupy a more important position in the field of lyocell fiber.

Comparison of comparable listed companies in the same industry:

Fifth, the core competitiveness

1) R&D and technical advantages.

The company has established a set of R&D system combining principle technology, process technology and product orientation, and has formed three core technologies covering chemicals from R&D to industrial preparation, including green chemical design theory and method, catalyst design and R&D technology, reactor adaptability design and process enhancement technology, and the green synthesis process used has a series of advantages such as low-carbon and environmental protection.

2) Advantages of flexible production.

The company's production lines are built with independent deep participation in the design, the production line has the characteristics of strong adjustability at the beginning of the design, and the production workshops have both general equipment and facilities, as well as unique reaction devices, the company can flexibly adjust the process, strengthen the capacity utilization rate, and solve the bottleneck process. The characteristics of "flexible production" enable the company to flexibly adjust the output of different products according to market demand, optimize the allocation of chemical products in the industrial chain, meet market demand in a timely manner, avoid the performance risk caused by demand fluctuations in downstream industries, and ensure the company's profitability.

3) Product performance advantages.

The purity of fine chemicals has a direct impact on product performance, the company has a strong separation and purification technology, based on a clear understanding of the production process of downstream customers, can be traced in the product specific harmful impurities, can develop a purification process that can remove these harmful impurities, in order to produce high-quality products.

4) Green environmental protection advantages.

Based on the company's focus on green chemical synthesis technology and the technical advantages formed, the company has shown better adaptability than the serious environmental protection problems commonly faced by traditional fine chemical enterprises, such as access thresholds, engineering procedures and environmental supervision. In the face of product opportunities or industrial opportunities that are limited by environmental issues, the company has also shown a better ability to capture opportunities.

Sixth, the situation of public opinion.

Recent hot articles on public opinion:

Negative public opinion is mainly focused on:

Cooperate with universities in R&D or hide the R&D director "appears" as a patent inventor of a related party before entering the company;

Production capacity data and EIA "confrontation" Pollutants frequently exceed the standard emission and internal control may be missing.

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