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    Synthetic Leather Industry Is Expected To Rebound As A Whole

    2014/12/5 12:17:00 25

    Synthetic Leather IndustryPU LeatherRaw Material Price

      

    Synthetic leather industry

    It is expected to get warmer overall. Based on the general elasticity of the synthetic leather, it recommends Amway shares and double elephant shares, and recommends Huafeng microfiber based on the upgrading of fiber permeability and upgrading of products.

    Among them, Amway's stock performance is the most flexible, and it is the first choice.

      

    Raw material price

    Keep falling: synthetic leather, especially PVC leather.

    PU leather

    The upstream raw materials are mainly polyurethane, which is highly correlated with oil prices.

    According to the 2013 annual report of Bi Xiang share, PVC/PU leather raw materials accounted for more than 75% of the operating cost, while the cost of raw materials for superfine fiber accounted for more than 65%.

    In the past one or two years, the price of raw materials has continued to fall, and the future price of oil will drop further.

    Demand for steady recovery: after several years of downturn, we believe that next year, the downstream industry of synthetic leather is expected to recover.

    Textile and clothing, especially sports brands, have gone through the painful process of stock (mainly in the channels) during the past 2-3 years. According to the results of grassroots research, channel inventory has basically been completed throughout the year.

    From the data analysis of listed companies disclosing financial data, sports brand was basically negative growth last year, but in the middle of this year, it has basically recovered positive growth and corporate profits have also improved. This is an important signal for the full recovery of the industry.

    And sofa / clothing and other areas are also expected to bottom up warmer, is expected to drive upstream synthetic leather production and marketing.

    Environmental protection promotes the improvement of competition pattern: in recent two years, Fujian, Zhejiang and many other places have introduced policies to reduce the production capacity of unqualified and unprotected synthetic leather, and other environmental storms are also being carried out to continuously raise the cost of small and medium-sized enterprises.

    Judging from the data, the production of synthetic leather has not basically increased in recent years.

    On the other hand, production capacity is also expected to further concentrate on the dominant enterprises, and the competition pattern is expected to continue to improve.

    With the increase of market share of the leading industry, its competitive advantage is expected to be further strengthened.

    At present, A shares related to synthetic leather listed companies include Amway shares, double elephant shares, wo Xin shares, Huafeng super fiber and Tong Da shares.

    Among them, Amway shares are focused on PU synthetic leather, Huafeng microfiber and the same large shares are the main producers of super fiber, while the dual elephant shares and wo Xin shares are involved in many fields.

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