China Glass Fiber: Restructuring And Consolidating Competition Power And Price To Promote Performance

More than 1 years, China's glass fiber Market (600176)

Recently, China's fiberglass trend is strong because of the market's recognition of the follow-up effect brought about by the restructuring.

The market believes that restructuring will bring fundamental changes to the company.

At present, the giant stone group contributes more than 90% of net profit. If the acquisition of 49% stake in megalith is completed, it will enhance the company's capacity expansion.

Asset restructuring, strengthening the leading position of the industry

According to the asset restructuring plan, the company intends to issue about 154 million 361 thousand shares to 4 major companies, including China building materials and other 4 companies, to purchase 49% stake in its giant stone group, which is valued at about 2 billion 937 million yuan.

China glass fiber is now holding 51% stake in the giant stone group. After the reorganization is completed, the giant stone group will become a wholly owned subsidiary of China fiberglass.

The main business of the giant stone group is the production and sales of glass fiber and products. The scale of production is ranked first in China. Its main business income and net profit contributed more than 90% to China's glass fiber.

"This paction is closely related to the implementation of the company's strong and excellent fiberglass industry."

The company said that through restructuring, China Fiberglass will hold a 100% stake in the giant stone group, which will further enhance the competitiveness of China's fiberglass in the field of glass fiber business, expand and strengthen the glass fiber industry, highlight the main business of China's glass fiber, improve asset quality and improve its financial position; at the same time, it can increase shareholder returns, enhance the capacity expansion and industrial chain integration capability through the capital market, further consolidate and strengthen the leading position of the company, and enhance the core competitiveness and sustained profitability of the company.

Volume and price rise to further open up space

Following the price increase of 7% to 12% in January 1st this year, the company decided to raise the price from 10% to 14% again in July 1st.

It is noteworthy that the price increases exceeded expectations in time and magnitude.

Many agencies believe that this fully demonstrates that the glass fiber industry is in the new round of upward cycle and releases a signal of strong future price.

The fiberglass industry is entering a period of big demand and price increase.

According to relevant forecasts, global glass fiber production capacity was 488 and 5 million 200 thousand tons in 2011 and 2012, while global fiberglass demand reached 483 and 5 million 410 thousand tons. The gap between supply and demand will appear in 2012.

Judging from the current upstream and downstream situation, the fiberglass industry is still on the rise, and there is no shortage of continued price increase in the future.

China's glass fiber has 935 thousand tons of capacity, accounting for nearly 20% of the world's fiberglass production capacity, and is also in the leading position in the industry.

At present, the company's new product research and development is constantly advancing, bringing the cost advantage through the technological pformation of the production line, and at the same time increasing the proportion of sales of high-end products.

In the first quarter of this year, the company achieved a net profit of 61 million, an increase of 264.36%, which became a bright spot in the market.

Transformation and upgrading aimed at high-end adjustment structure

After ten years of rapid development, China's glass fiber has encountered many new problems. For example, the national macro-control has been increasing year by year, the price of energy and raw materials has been rising, the RMB has continued to appreciate, and the rise of international trade protectionism.

First, slow down domestic extensive investment and aim at high-end adjustment structure.

The company will continuously build and improve the quality of the three production bases in China, and put forward the goal of building the Tongxiang base into a global headquarters and innovation base. At the same time, it will make full use of the new facilities in Jiujiang and make use of the power and energy security in the central and western regions to maintain a reasonable scale of production.

At the same time, the company will further increase the proportion of products in new markets and new fields.

Second, we should push forward the process of internationalization and realize the effective utilization of global resources.

While controlling the scale of domestic rational investment, we should actively implement the construction of overseas production bases.

Third, improve the global marketing system and strengthen the right to speak in the glass fiber market.

On the basis of the existing global marketing network, the company will further set up overseas holding subsidiaries and exclusive distributors in countries and regions with relatively mature market conditions.

We should speed up headquarters construction and establish an international collectivized management system for global unified procurement, unified sales, unified management and unified talent deployment.