Taihe New Material: Special Fiber "Heavy Drama"

"In recent years, China has become the number one in the world. Chemical fiber High tech fiber will be the highlight of the future development of chemical fiber industry. Li Jianan, a researcher at CIC's chemical industry, said.

As a key high-tech enterprise of the national Torch Program, Taihe new material specializes in R & D and production of high-tech special fibers, and is currently the largest special fiber producer in China.

From the company's performance, from 2011 to 2013, its net profit was 140 million yuan, 45 million yuan and 84 million yuan respectively, up by -45.57%, -68.10% and 89.61% respectively compared with the same period last year. In the first quarter of this year, the company achieved a net profit of 51 million yuan, an increase of 278.40% over the same period, corresponding to a net asset value of 3.48 yuan per share.

"Benefiting from rising industry boom, the spandex market in the first quarter of this year Price At a high level, compared to the same period last year, the price of raw materials increased significantly, while the price of main raw materials decreased. The price difference between spandex and raw materials increased and the company's consolidated gross profit margin increased by 9.43 percentage points. In addition, the increase in sales and profitability of aramid fiber also contributed to a year-on-year increase in corporate profits. Everbright Securities analyst Mao Wei said.

It is understood that in recent five years Spandex Industry Consumption compound annual growth rate exceeds 17%, and last year spandex productivity growth is only about 4%. As productivity growth is far below demand growth, the industry generally maintains a tight supply pattern, spandex price elasticity is enormous.

Mao Wei said that due to the high technical threshold, the company's production of aramid products in the field of protection, especially the color silk, has obvious competitive advantages. It is expected that some of the products will continue to maintain a good profit level in the future. In the aspect of aramid fiber, the company launched high-precision fiber for PM2.5, and intensified its promotion in the field of protection, such as military police, etc., which is conducive to get rid of the disorderly competition in the low-end market. In terms of aramid, the quality of the company's products is improved and its cost is reduced, and the space for subsequent development is broad. However, analysts said that the company is also facing many uncertainties, such as the continued downturn in demand for textile products downstream, the expansion of aramid products market is less than expected and industry competition intensified.

In the two tier market, since last year's share price fell 15.05% year-round, since the beginning of this year, as of July 4th closing, Taihe new material performance is good, share price rose 11.64% in the same period, outperformed the chemical fiber plate (Shenyang second level industry) which has risen 1.82% in the same period. In the 27 listed companies of the sector, Taihe new stock price rose earlier. At present, the company's TTM is 35.84 times higher than that of the 15.05 sector.

From the main position position, as at the end of the first quarter of this year, 7 main institutions, including 2 general legal persons, 4 funds and 1 brokerages, were holding Tai and new materials, holding a total of 214 million shares, accounting for 42.07% of the A shares. Among them, the fund positions compared with the end of last year, 3 additional positions, holdings of 1 million 280 thousand shares; 0 reduction of positions. After the company's share price outperformed the industry index, a total of 15 agencies issued a rating in the near future, with the overall rating rising. As of June 28th, a total of 14 institutions made forecasts of the company's performance this year, with an average forecast net profit of 215 million yuan. According to this forecast, the net profit of the company increased by 154.62% over the same period last year.