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    Nissan 12 Tons Of Melt Spray Cloth! Yanjiang Shares Surged 3 Production Lines, Giving Priority To 51 Big Customers.

    2020/3/16 11:54:00 1

    Yanjiang SharesMelt Blown ClothPerforated Nonwoven Fabrics

    Perforated non-woven fabric leader, Xiamen Yanjiang new material Limited by Share Ltd (hereinafter referred to as "Yanjiang stock") issued a notice in March 13th. To alleviate the current tight supply situation of melt blown nonwovens under the current new crown epidemic situation, the company urgently purchased key equipment and promptly assembled and reformed the new meltblown nonwoven production line. As of March 13, 2020, the company has completed the work of adding 3 melted nonwoven production lines, increasing Nissan from 6 tons to 12 tons.


    Yanjiang shares said that with the completion of the relevant production lines on schedule and smoothly put into operation, as of today, the company has 51 customers in hand orders, if the order can be successfully completed, sales will be expected to bring a net profit of 3800-4200 yuan.


    Since the outbreak of the new epidemic, the demand for masks has risen sharply, and there is a shortage of melt blown nonwovens for the production of masks. Prior to this, Yanjiang shares set up an emergency project and set up a melt blown nonwoven project team. It started the project from February 1st, and by February 16th, basically completed the transformation of 3 melted nonwoven production lines, and officially began to supply 3 products from February 17, 2020. The capacity of the line theory is 10 tons / day, and 1 of them will continue to be used as the experimental line of melted spray non-woven fabrics at medical level, and the actual output is 6 tons / day.


    Yanjiang shares said that after the efforts of the company's R & D department, the melted nonwoven fabric produced by the company has been tested through internal tests and samples sent to downstream mask manufacturers. Its PFE value has stabilized over 90%. However, the medical grade melted nonwoven fabric is still in the detection stage. The test results may indicate that the melted nonwoven fabric of the company needs further improvement to meet the relevant requirements. Technical indicators, there is a commercial uncertainty risk.


    Affected by the epidemic, the domestic masks are in great demand, and the mask industry has maintained a high economic boom. Zou Runfang, an analyst at Tianfeng securities, estimates: according to the National Bureau of statistics, in 2018, the national labor force was 806 million, based on this data, and according to the national Bureau of statistics, the relevant national information security policy assumes that the national recovery rate is 70% in March, according to the use of a mask per person per day and 22 days per month. Through calculation, we can get 564 million domestic mask masks and 12 billion 412 million domestic masks.


    According to the national development and Reform Commission's announcement, in February 29th, there were only 116 million mask masks, including medical masks, medical masks and medical N95 masks, and the industry still had much room for improvement.


    The industry believes that the recent resumption of industry and the flow of personnel also brought a huge demand for masks. As of March 6th, most of the industrial enterprises above Designated Size had returned to over 90%. Small and medium-sized enterprises are weak in their ability to resist risks, and are more affected by the epidemic. They also face more difficulties in resuming work, which is obviously lower than that of Enterprises above Designated Size in the same period. On March 6th, the State Council's new crown pneumonia epidemic prevention and control treatment progress conference, Wang Jiangping, Vice Minister of the Ministry of industry and commerce, said that in addition to Hubei Province, the resumption rate of secondary and small enterprises in the whole country was 52%.


    In foreign countries, the director general of the World Health Organization, Tan Desai, has recently made public that the global market has been seriously disturbed, and the demand for personal protective clothing such as masks is 100 times the normal level, and that the price is 20 times that of the normal level. Many countries such as Korea, Russia and Germany even began to ban the export of masks. With the further development of foreign epidemic situation, the demand for overseas masks is expected to increase rapidly.


    Yang Song, a Securities researcher at XinDa, believes that meltblown fabric is a major constraint on the productivity of Chinese masks. In 2018, the output of melt blown nonwovens was about 53 thousand and 500 tons. It was mainly used in masks, environmental protection materials, clothing materials, battery separator materials, wiping materials and other sub fields. The cost of meltblown fabric production line is high, and many parts rely on imports, and the production line is difficult to expand. At present, the main ways to expand the production of masks are as follows: original enterprises actively expand production, new production lines such as Sinopec and other upstream enterprises, and some related enterprises transform production lines (such as production of automobile noise absorbing cotton and other materials for enterprises to transform mask respirators).


    According to the statistics of China Industrial Textiles Association, the production process of China's nonwovens (nonwovens) industry is mainly spunbonded. In 2018, the output of non-woven fabrics was about 5 million 940 thousand tons, of which the output of spunbonded nonwovens was 2 million 971 thousand and 200 tons, accounting for 50% of the total output of non-woven fabrics, and spunbonded nonwovens were mainly used in the fields of sanitary materials and so on, and the proportion of melt spun process production was only 0.9%, that is 53 thousand and 500 tons / year.


    In Yang Song's view, the cost of melted cloth production line is relatively high, and the production cycle of the melt spraying equipment is longer because of the key components procurement cycle, so it is difficult to deliver in a short time. Many parts rely on imports, increasing the production line is very difficult, and it is difficult to expand rapidly in the short term. Therefore, melt blown cloth has become one of the bottlenecks in the production of masks. During the epidemic period, many masks downstream production enterprises were suspended due to the shortage of melt blown nonwovens.


    According to media reports, the price of melted spray cloth increased from 18 thousand yuan / ton before the epidemic to about 200000 / ton at the end of February. Only a week later, the price of the melt blown cloth doubled again, up to 520 thousand / ton, and the price increased 29 times. In March 10th, the State Administration of market supervision and administration announced a number of typical cases of the price of the melted spray cloth which had been investigated and dealt with. And so on.


    Public information shows that Yanjiang industrial and Trading Co., Ltd., the predecessor of Yanjiang shares, was founded in 2000. After the reform, it was changed to Limited by Share Ltd in 2000, with a registered capital of 75 million yuan. The company entered the gem in June 2017, mainly from the development, production and sale of disposable sanitary products surface materials. At present, its products include 3D punched nonwoven fabrics, hot-air non-woven fabrics, PE perforated films, etc. the products are mainly used as surface materials for disposable sanitary products such as sanitary napkins, diapers and pads.


    According to the financial report, in 2019, Yanjiang shares achieved a total revenue of 1 billion 36 million 479 thousand and 100 yuan, an increase of 35.26% over the same period last year, operating profit of 81 million 619 thousand and 500 yuan, an increase of 63.31% over the same period last year, a total profit of 97 million 125 thousand and 500 yuan, an increase of 94.28% over the same period last year, and a net profit of 80 million 309 thousand and 200 yuan attributable to shareholders of listed companies, an increase of 65.21% over the same period last year.


    Yanjiang shares explained that the main reasons for the change in the reporting period were:


    1, during the reporting period, through the layout of the previous two years, the global supply chain system of the company was initially built and began to play its role. Overseas customers' orders grew faster, especially the establishment of Egyptian subsidiaries and American subsidiaries, making the company's PE perforation membrane quickly occupy the market in the Middle East, Africa, the mainland, China and North America and so on, which is the biggest motivation for the rapid growth of the company's performance.


    2. During the reporting period, the sales and profitability of Egyptian subsidiaries have reached a new high, and have grown into an important contributor to the company's performance. Although the US subsidiary is still losing money throughout the year, it has basically achieved monthly profit and loss balance and profit from the end of the two quarter. The situation has been constantly changing, and the annual loss has dropped significantly compared with the same period last year. The India subsidiary started to operate from the third quarter. Battalion, at present, has limited capacity release and is still in a state of loss, affecting the current group profits.


    3, during the reporting period, the company strengthened internal control and effective control of production costs and operating expenses, so that the growth of performance can finally be realized to increase net profit.
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