The Synthetic Leather And Leather Industry Is Under The Pressure Of Environmental Protection.

Recently, Hua Fengchao and 300180.SZ, the listed companies which mainly use microfiber PU synthetic leather as the main business, have attracted much attention from the capital market, and their share prices have reached a new high in the near future.

Great wisdom News Agency (micro signal DZH_news) interviewed many people in the industry learned that under the pressure of sewage treatment and environmental protection policy, the leather and synthetic leather enterprises whose environmental protection is not up to date will be gradually closed down, and backward production capacity will be phased out. In the process, the development prospects of the third generation synthetic leather (ultra microfiber leather) with environmental protection, performance and price advantages are promising and the trend towards oligopoly is promising.

Acting manager of Shanghai min Shen Environmental Protection Technology Co., Ltd. revealed to big wisdom news agency that before some synthetic leather enterprises were directly discharged, or the enterprises could not meet the standard of pollution treatment, the environmental protection policy became more and more strict, so the synthetic leather enterprises at present were hard to see, but the cost of pollution control correspondingly increased.

Another synthetic leather dealer, who did not want to be named, also said that under the strict investigation of environmental protection, small businesses were afraid to cut corners on pollution control equipment and the cost was rising sharply.

In early 2013, the "upgrading and upgrading scheme of synthetic leather industry" introduced by Wenzhou showed that by the end of December 2015, the production line of synthetic leather enterprises in Longwan district (including hi tech Park) and Wenzhou economic and Technological Development Zone had been cut by more than 50%.

The synthetic leather city, Lishui, Zhejiang, launched the verification of the production lines that were not approved before construction. In May 2014, the Lishui Environmental Protection Bureau of Zhejiang Province recently closed 23 unapproved synthetic leather production lines, with an annual capacity of 3600-3650 square meters.

Public information shows that in 2012, Zhejiang accounted for 42.6% of the national synthetic leather production capacity, and the synthetic leather industry was one of the pillar industries in Lishui.

As of press release, environmental governance for synthetic leather enterprises in Lishui has achieved initial success.

Shanghai min Shen Environmental Protection Technology Co., Ltd. acting manager to great wisdom news agency said, recently, the company for a local synthetic leather enterprise to undertake sewage treatment EPC general contracting project, the enterprise has passed the phased environmental protection acceptance, sewage index ranking ahead; the company adopts the new biological treatment technology, compared with other technologies, not only sewage treatment standard, and the cost of governance is lower.

In addition, according to the great wisdom news agency, leather is also a product of this wave of environmental protection. The Ministry of industry and Commerce officially announced the "leather industry standard conditions" in 2014. The leather industry is forced to close down due to environmental problems and a large number of backward production capacity.

Microfiber leather, which is the closest synthetic leather to leather, is the most important substitute for dermis.

Hua Feng

It has been publicly stated that the net profit in the first quarter of 2014 increased by 71% over the same period last year, mainly due to the pressure of environmental protection on leather leather industry, making the order of substitutes for microfiber leather increased.

The synthetic leather industry is a fully competitive type. The industry boom has been in the doldrums since 2011. In 2013, under the pressure of multiple environmental policies, the days of small businesses are even more difficult.

However, many industry insiders agree that the sales performance of the third generation synthetic leather (microfiber leather) is thriving, but the listed companies do not disclose the specific sales data.

It is reported that artificial leather is divided into three generation products, PVC artificial leather (first generation), PU synthetic leather (second generation) and microfiber leather (third generation).

Microfiber leather is considered to be the sunrise product of synthetic leather. Besides, it is the best substitute for leather, and it is expected to fully enjoy the market gap left by the genuine leather.

Haitong Securities

Research reports released by Zhang Rui and Cao Xiaofei show that although the microfiber leather has developed rapidly in recent years, its consumption in the whole synthetic leather is still small. "It is predicted that the growth rate of the future will be far faster than that of the synthetic leather industry, and the consumption of synthetic leather will continue to increase."

It is reported that compared with ordinary PVC leather, the inner structure and appearance texture of microfiber leather are very close to the genuine leather, but the price is only 1/4-1/52005-2010 of the leather. The consumption of domestic super fiber leather is more than 35%, and its growth rate is much higher than that of the synthetic leather industry, which is about 13%. At present, the consumption of synthetic leather is 5% less than that of the synthetic leather, and the room for future upgrading is still very large.

The above Haitong Securities analyst also said, assuming that the future microfiber leather will increase to 20% in the proportion of synthetic leather consumption, with the annual consumption of 3 billion 500 million square meters of synthetic leather, the consumption of microfiber leather will reach 700 million square meters / year, while the current consumption of microfiber leather will be 100 million square meters / year, and will be promoted in the future.

Still very large.

The ultra fiber leather industry shows the trend of oligopoly, and Hua Feng super fiber has the top

After three years of integration, the Hua Fengchao fiber, the same big stock, 002343.SZ and 002395.SZ share the majority of the market share. The production capacity accounts for about 60% of the total production capacity. The small scale enterprises will tend to be eliminated if there is no scale benefit, which indicates that the ultra fiber industry is now heading for oligopoly trend.

Among them, Huafeng ultra fiber has the advantages of capacity, innovation and profitability.

By the end of 2013, the capacity data of China's Microfiber leather listed companies are shown above.

(source: Changjiang Securities Yu Yu, Yang Chao, Ling Xueliang released Research Report)

According to the deadline, Huafeng microfiber is the first super fiber leading enterprise in China. Its capacity is expanding rapidly. Its domestic market share is over 10% in 2012. It is the first super fiber leather manufacturer in China. In the 2009-2013 year, the company's capacity increased from 9 million square meters to 28 million 800 thousand square meters per year. It is estimated that the capacity of the company will reach 36 million square meters per year by the end of 2014, and its capacity will be ahead of other enterprises.

A listed company insider and a synthetic leather dealer who did not want to be named complained that Huafeng microfiber was good at price war relying on its own capacity advantages, and small capacity enterprises had difficulty in taking advantage of the confrontation with Huafeng microfiber.

In addition to the advantages of production capacity, the insiders, who share second of the total capacity of microfiber leather, have admitted to the great wisdom news agency that the competition for old products is too fierce, so the competitiveness of enterprises mainly comes from the R & D capability of microfiber innovative products.

Huafeng ultra fiber insider responded that the company has gradually abandoned the sports leather market and increased the intensity of new product research and development.

Recently, Huafeng microfiber revealed that the company will expand its application scope and new applications in the new field.

Hua Fengchao said earlier that the company's R & D superfine fiber innovative products can solve the common irritating odors in the dermis, formaldehyde and heavy metals exceeding the standard, thus quickly getting customers' favor.

In the background of the overall downturn of the synthetic leather and the rising of the scale of the super fiber leather, Huafeng microfiber has maintained a relatively good growth rate. In the first three quarters of this year, its net profit still had a year-on-year growth rate of 18.42%. However, the same industry shares, wo Xin shares and double elephant shares all slipped year by year.

A shares market related to the super fiber leather listed companies as shown below.

However, only Huafeng microfiber and its large shares are mainly engaged in super fiber leather, and wo Xin shares and double elephant shares run other products.