Textile material invisible champion: Growing fiber, fabric, accessories quality enterprise tour

Taihua New Materials: civil nylon 66 supply and demand, the whole industrial chain high-end leader accelerated expansion

(1) Development history: fabric → grey cloth → filament, extending from downstream to upstream, continuous expansion of production

In February 2001, the company's predecessor Taihua Special Textile was established; 2007 Taihua Textile absorbed and merged Taihua Weaving; At the end of 2007, Taihua Textile acquired high-tech dyeing and finishing; At the end of 2010, Taihua Textile acquired Fuhua Weaving. In 2011, Taihua Textile acquired Jiahua Nylon, and completed the whole industrial chain layout integrating nylon filament, textile, dyeing and finishing. In October 2018, after finishing and processing 34.5 million meters of high-grade special functional fabric expansion project was completed and put into operation; In May 2019, the annual dyeing 80 million meters of high-grade differential functional nylon fabric expansion project was completed and put into operation; In July 2019, the intelligent annual output of 120,000 tons of high-performance environmental protection nylon fiber project began; In November 2019, the high-grade nylon grey fabric project with an annual output of 76 million meters was completed and put into operation. From 2015 to 2018, the annual revenue CAGR was 16.1% to 2.97 billion yuan. In 19 and 20 years, affected by the trade war and the epidemic, the revenue and performance declined. By the end of March 2021, the 120,000 tons of high-performance nylon fiber project was basically completed and entered the trial operation and production stage. The successful expansion of differentiated nylon filament helped the performance increase in the first three quarters.

(2) Business analysis: The rapid expansion of nylon filament, gross profit margin is dominant, and production capacity is in short supply

The proportion of nylon filament increased rapidly, the gross profit margin advantage was obvious, the capacity utilization rate and the production and sales ratio were close to 1 In 2020, the company's nylon filament/nylon grey fabric/polyester grey fabric/nylon topper/polyester topper received 8.4/6.7/1.0/43/360 million yuan, the proportion was respectively

33.6% / 26.6% / 4.1% / 17.1% / 14.6% of 15 ~ 20 years compound growth of 15.9% / 5.1% / 21.8% / 3.7% / 18.4%. From the perspective of gross profit margin, the percentage in 2020 is 21.3%/22.0%/15.3%/29.3%/15.0%, and the gross profit margin of nylon filament has steadily increased in the past 6 years, and has exceeded the polyester grey fabric and polyester fabric in 20 years. At the same time, because the company's nylon filament is in short supply, the company has 65,000 tons of nylon filament standard production capacity, and the capacity utilization rate has exceeded 100% since 2016, and the production and sales rate is close to 100%.

(3) Competitive advantage: the whole industry chain + high technical barriers, product added value and gross profit margin dominate

The company has a complete R & D, spinning, weaving, dyeing and finishing and sales of integrated industrial chain, can R & D, production of environmental health protection, outdoor sports, special protection three series, a variety of high-grade functional nylon fabrics, is one of the few domestic can produce civilian high-grade nylon 66-FDY products enterprises. As early as more than 10 years ago, the company laid out the civilian 66 spinning production, and at present, the production equipment and production process have formed high technical barriers, and the yield is better, which is difficult to be surpassed by domestic competitors in the short term.

(4) Growth: Differentiated fibers are in short supply, and they are expanding with deep technical and equipment barriers

1, nylon 66 excellent performance, in short supply, adiponitrile localization will further increase the demand. From the perspective of versatility, nylon 66> nylon 6> polyester fiber, the excellent performance of nylon 66 is usually used in down jackets, outdoor hardshell jackets, yoga wear and other better demand for high-end clothing and special functional clothing. According to our estimates, the domestic civilian nylon 6 and 66 filament production of 224/72,000 tons respectively. Civilian nylon 66 filament downstream demand is strong, and the production is less mainly due to the upstream key raw material adiponitrile production technology for a long period of international monopoly. However, this "card neck" technology has been broken through by domestic manufacturers, and at present, major domestic plants have at least 1 million tons of adiponitrile under construction. At present, the industry nylon 66 has been in short supply, and the smooth production of adiponitrile is expected to reduce the cost of nylon 66, thereby further increasing civil demand.

2, renewable nylon has a broad prospect, the industry's first 10,000-ton nylon fabric chemical regeneration program can be more and more leading brand customers at home and abroad pay attention to sustainable development, many brands put forward in the medium and long term to achieve renewable materials in clothing to reach a certain proportion of the plan, renewable nylon has a very strong development prospects. At present, there is no project case of 10,000 tons of chemical recycling method using complete sets of own technology in China. In August 2021, Taihua New Materials signed a chemical recycling nylon material project with Ploymetrix, a subsidiary of Sanlian Hong. According to the announcement of Sanlian Hongpu, this cooperation project is the industry's first 10,000-ton chemical regeneration nylon system solution for nylon fabric. The waste silk, scrap blocks and scraps in the production process of nylon fabric are chemically depolymerized to obtain caprolactam monomer, and then re-polymerized to obtain high-quality spinning grade slices. After melting spinning, various specifications of recycled nylon fiber are prepared. Fiber reuse closed loop.