02299-HK, a high-end market for locating polyester filament products, has gained popularity in the industry in recent years. It has taken a place in China's fierce market competition and has also opened factories to Vietnam.

Thanks to the remarkable achievements of polyester filament and polyester film business, the company has performed well.

We have seen from the recent achievements of the 2018 annual performance of the company.

Product sales and sales price gratifying, profit increased by 50%

According to its annual report, the company's revenue and net profit have risen, and the momentum is strong.

In 2018, the company achieved an income of 8 billion 602 million yuan (RMB, the same below), an increase of 22.4% over the same period last year, and the profit attributable to shareholders 774 million yuan, an increase of 50% over the same period last year.

The financial community found that this is already a three consecutive increase.

The operating income increased from 4 billion 561 million yuan (RMB) in 2015 to 8 billion 602 million yuan in 2018, with a compound annual growth rate of 23.5% and a net profit growth of nearly three times in the same period.

The triple jump is inseparable from the rapid growth in sales volume of industrial products.

In recent years, the company has expanded its capacity through continuous new projects.

In addition, the rise in sales price is also the reason for the growth of sales volume.

In recent years, the price and price difference of polyester filament are stronger than that of the same period in history.

Benefiting from the prosperity cycle and the upward trend of crude oil prices, the price trend of polyester products is strong.

Among them, the product rose from 9000 yuan / ton in early July 2018 to 12300 yuan / ton in early September, or up to 36.67%.

From the above chart, we can see that the price of polyester products has maintained a trend of increasing volatility in 2016, so that the sales price of industrial products has increased and profitability has been enhanced.

Industry downturn, leading companies fight more than

Beginning in the second half of 2018, domestic polyester raw materials short term skyrocketing caused the price can not be smoothly pmitted to downstream enterprises, superimposed oil prices fell sharply, polyester plant began to reduce production parking in mid and late 9, resulting in the industry downturn.

Although the industry boom has dropped, the capacity of leading enterprises has continued to expand, extending to the upstream to form a complete industrial chain. The integration and scale advantages are highlighted. The flexibility and anti risk ability of leading enterprises have been enhanced.

In the pformation of new and old capacity, the industry concentration has been increasing, because the new capacity is concentrated in leading enterprises.

In order to compete for market share, several leading enterprises continue to expand their capacity, and the expansion period is still in 2019.

In 2016, the industry expanded its capacity to expand production capacity. In 2016, the production line of second hundred to fifth production lines of the polyhong polyester film was formally put into operation, and the design capacity was 255 thousand tons per year. In 2017, the investment of Hong Kong in Vietnam was about 222 million US dollars to expand the production of polyester bottles, the production of polyester filament, and the production of polyester, pre oriented yarn and full draft wire. It is expected to be put into operation at the end of 2017. In addition, the industry will invest about 185 million US dollars to establish the production line of polyester industrial yarn, so as to expand the production of polyester industrial yarn products, and the total capacity of the new manufacturing facilities will be about 25 tons per year, and it is expected to start commercial production in the second quarter of 2020.

In 2018, the new capacity of Bai Hong was nearly 200 thousand tons, although it was larger than that in 2017. However, during the period, the production of polyester filament of 601233-CN in the industry increased to 1 million 100 thousand tons, and the new polyester filament of new Feng Ming (603225-CN) increased by 900 thousand tons.

Compared with the new capacity of the two leading industries, the volume of the industry is negligible.

In addition, the new projects of Tong Kun and new Feng Ming enterprises are also advancing. Tong Kun shares expect that the production capacity of polyester filament will reach 6 million 600 thousand tons / year by the end of 2019. The new Feng Ming will enter the launching phase of capacity production in 2019.

In the current decline cycle of polyester industry, the industrial chain and scale advantage will become increasingly prominent in the situation of competitive strength large enterprises in the new production capacity, and the control of the industry will be improved.

In order to restore the advantages of capacity scale and remain invincible in the long competition of polyester industry, it is still a matter of time before that.

Polyester film material company's important performance increment

Polyester film is made of polyethylene terephthalate as raw material, extruded into thick sheets, and then biaxially stretched.

Polyester film, environmental friendly film, PET film, opaque film and other printing and packaging consumables, widely used in FRP industry, building materials industry, printing industry, medical and health.

In 2011, polyester film was set up by Fujian Bai Hong hi tech Industrial Co., Ltd., and its total investment amounted to 1 billion 937 million yuan.

Since then, the development of polyester film business has been developing rapidly. Now it has become the second largest source of revenue in the industry, accounting for 21% of its revenue in 2018.

We are positioning ourselves in the domestic high-end functional polyester film market by introducing the internationally advanced German BOPET film production line and R & D equipment.

There are as many as 15 varieties in the industry, which can be applied to many fields and become popular in the market.

In recent years, the company has continuously increased its polyester film business.

The downstream of polyester film industry is mainly plastic flexible packaging, while plastic flexible packaging is mainly used in food, beverage, consumer goods and medicine industries.

The polyester film project in Southern China is mainly concentrated in the area of Southern China, while the production of polyester film in the region is relatively small, which is conducive to expanding market share and improving the bargaining power of products.

The average selling price of the polyester membrane products increased from 6940 yuan per ton in 2016 to 9016 yuan in 2018. During that period, the income of the business increased by nearly 3 times to 1 billion 817 million yuan, making it an important source of profits for the company.

Because of the rising product prices and proper cost control, the gross profit margin of the business has been strong.

Therefore, the industry has regional, technological and cost advantages in the polyester film industry. In the industry at the time of the blue ocean stage, polyester film will become an important performance increment in the future.