Jiangnan High Fiber: Composite Short Fiber Tap

The characteristics of the non-woven fabric made of ES fiber are characterized by "dot bonding" instead of "zone bonding". Therefore, compared with general nonwovens, the products are characterized by bulking, softness, high strength, good permeability and strong adsorption capacity. They can adapt to the high speed production of new sanitary napkin and diaper production line, and are especially suitable for non-woven fabrics for disposable sanitary products. The world's most important manufacturers of diapers, sanitary napkins and other sanitary products, such as P & G, Kimberly, Johnson, euni Jia and Wang Hua, are making use of new non-woven fabrics made of ES fiber instead of the original ordinary non-woven fabrics to produce disposable sanitary products. ES fiber is a leather core structure of two component fiber, belonging to the high-end varieties of differential fiber, because ES fiber unique two sets.

Conservative judgement of China's ES fiber demand in 2010 to 180 thousand tons, in 2015 will reach 320 thousand tons, compound annual growth rate of 16%, and the demand for the entire industry will be greater.

We are optimistic about the domestic market.

The company mainly produces and sells polyester top and composite staple fiber, and its capacity reaches 26 thousand tons and 100 thousand tons respectively. It has become the largest scale production equipment and the most advanced polyester fiber top and composite staple production enterprise in China.

Polyester top is the traditional main product of the company. The main raw material is polyester (PET). Downstream demand is mainly used to produce woolen fabrics blended with wool, mainly used for production suits, uniforms, etc.

The company monopolizes the domestic market share by more than 60%, has a strong market pricing power, and the gross profit margin is maintained at around 30% for a long time.

Companies provide differentiated products for different customers, and it is more difficult for new entrants to open up the market.

Polyester wool business will remain stable.

In terms of composite short fibers, the company is the largest composite short fiber producer in China, with a market share of about 30%. Raw materials are mainly polyethylene (PE) and polypropylene (PT). Raw materials account for about 80% of the cost, and their prices are mainly affected by fluctuations in international crude oil prices and supply and demand.

The main products are ES fiber and high strength fiber, and the production capacity is about 50 thousand tons. At present, the ES fiber production capacity of the company is around 50%, of which ES fiber is the key development direction.

The total amount of funds raised by the company is not more than 426 million yuan, the construction of 80 thousand tons of multi-functional composite short fiber, the production of core core composite short fiber, construction period of 12 months.

The annual sales revenue of the project is 1 billion 32 million yuan, the total annual profit will be 80 million 110 thousand yuan, and the output of composite short fiber will reach 190 thousand tons, which will consolidate the leading position of the industry.

Composite short fiber business will grow at a high speed.

In the first three quarters of 2010, EPS was 0.19 yuan, which is expected to be 0.3 yuan a year, corresponding to 30 times earnings. Due to the leading position of polyester and ES fibers, the polyester industry is gradually entering the business cycle. The new ES fiber production capacity is expected to be put into operation at the end of next year. The net profit growth rate of the company's net profit is expected to exceed 30% over the next 3 years, corresponding to the earnings ratio of 14 times.