On August 19, Wanwei High-tech released the performance report for the first half of 2022. The company achieved operating income of 5.015 billion yuan, an increase of 33.61% over the same period of the previous year; operating profit of 1.173 billion yuan, an increase of 109.50% over the same period of the previous year; attributable to the parent company The owner's net profit was 960 million yuan, an increase of 100.10% over the same period of the previous year; foreign exchange earnings from exports were 194 million US dollars, an increase of 90.20% over the same period of the previous year; earnings per share were 0.498 yuan, an increase of 100% over the same period of the previous year.
The announcement shows that in the face of the complex market environment, the company's "one body with two wings" layout and the strategy of "prominent main business and industrial synergy" have shown strong development momentum. The company produces 91,000 tons of PVA products and sells 93,800 tons, realizing both booming production and sales of products and a new record high in performance. Subsidiary Guangxi Wanwei further promotes the development of the biomass chemical industry, continuously cultivates and incubates new products, and its operating conditions continue to improve; at the same time, it gives full play to the efficiency of the flexible production process of the ethylene method, increases the production capacity of the ethylene-based vinyl acetate, and improves sales revenue and economic growth. Benefits: In the first half of the year, biomass alcohol, vinyl acetate, VAE emulsion, polyvinyl alcohol, organic fertilizers, carbon dioxide and other products all achieved revenue and profit increases.
The following is the discovery status, global production capacity distribution and downstream development trend of the PVA industry.
Wanwei High-tech (600063.SH) is currently the largest manufacturer of PVA series products in China with the largest production capacity, the most advanced technology, the most complete industrial chain, and the most complete product varieties. It has been focusing on the development, production and sales of polyvinyl alcohol and related products for many years , the production, sales and market share of polyvinyl alcohol (PVA) products account for about 35% of the domestic market, and the production capacity ranks first in the country and in the forefront of the world; the production and sales of high-strength and high-modulus polyvinyl alcohol fiber products rank first in the country, reaching domestic More than 60% of the total, and the international market share is about 45%.
1. Polyvinyl alcohol (PVA) industry chain
Calcium carbide—PVA—PVA fiber
PVA for film—PVA optical film
Waste molasses—alcohol—ethylene—vinyl acetate—VAE/PVA
VAE—Redispersible Emulsion Powder
(1) Polyvinyl alcohol (PVA) products and uses
Polyvinyl alcohol (PVA) is a high-molecular polymer, which is made of vinyl acetate (VAC) through polymerization and alcoholysis. It has good adhesion, film formation, oil resistance, and colloid protection. Non-polluting and degradable properties that are rare in polymer materials. Compared with other chemical products, PVA and its derivative products have a very broad development space, and new uses and new varieties are still being developed.
The traditional application fields of PVA products, in addition to being used as raw materials for the synthesis of vinylon fibers, are mainly used in adhesives, textile pulp, papermaking, etc. , soil improver, food packaging, building materials, medicine, tanning, papermaking, electronics, environmental protection and other industries also have broad application prospects.
Polyvinyl alcohol in my country is mainly used to produce polymerization aids, fabric slurry, vinylon fibers and adhesives, etc. With the development of my country's economy, domestic demand and exports of high-count, high-density and high-end textiles increase, and the development speed of high-grade papermaking and oil exploration industries Accelerated, the automobile industry is booming, and the demand for safety glass for automobiles and buildings is rising rapidly. These industries provide a broad space for the development of new polyvinyl alcohol products. At the same time, a large number of domestic infrastructure constructions provide development opportunities for the adhesive market, and the steady development of the electronics, papermaking, pharmaceutical, and fine chemical industries has further promoted the rise in demand for polyvinyl alcohol.
In the first half of 2022, the actual output of Wanwei high-tech PVA products was 115,900 tons, of which new and special varieties accounted for 72.33%.
(2) High-strength and high-modulus PVA fiber
High-strength and high-modulus PVA fiber is a high-performance fiber product with good mechanical properties, biocompatibility and non-toxicity. Due to its good affinity with water and good dispersion in alkaline cement slurry, especially its unique surface structure makes it have good mechanical bonding, and its strength can reach more than 2.5 times that of asbestos-reinforced cement. Therefore, , can be used to strengthen cement and ceramic building materials; at the same time, its excellent corrosion resistance can also be used in ropes and aquaculture; in addition, because of its small elongation, it has good adhesion to polymer materials such as rubber and plastics , can be used for the bonding of rubber products, coating layers, braided hoses, etc.; it is also used in the fields of artificial intestines and medical sutures. From the perspective of fiber length, high-strength and high-modulus PVA fiber is not easy to enter the human respiratory system. As a substitute material for asbestos, it is harmless to the human body. , Anti-aging, non-polluting and other advantages, it is widely used in building materials, construction, leather, rubber, medical equipment and other fields.
At present, the global enterprises producing high-strength and high-modulus PVA fibers mainly include Japan Kuraray, Japan Unicheka, Malaysia JTC, Wanwei High-tech, Sichuan Chuanwei, Inner Mongolia Shuangxin, Ningxia Dadi, etc., with a total production capacity of about 120,000 tons. In 2021, the world's demand for high-strength and high-modulus PVA fibers will be about 80,000 tons, of which about 70,000 tons will be used in the field of building materials, mainly used to replace asbestos, and a small amount will be used in the concrete industry. It is estimated that by 2025, the global demand for high-strength and high-modulus PVA fibers will reach 100,000 tons per year, with a compound annual growth rate of about 5%.
In the first half of 2022, the actual output of Wanwei high-tech high-strength and high-modulus PVA products was 10,600 tons, completing 40.8% of the annual budget.
(3) PVB resin
PVB resin is mainly used in the manufacture of laminated safety glass in the automotive and construction industries, that is, the PVB resin is first pressed into a film, and then embedded between glass plates to make a laminated glass plate. The interlayer material in safety glass can absorb a certain amount of impact energy, and this material has good sound insulation and UV resistance.
From the perspective of downstream consumption structure, about 89% of PVB resin is used in the production of safety glass in construction and automotive industries, 14% is used in photovoltaic materials, and the remaining 7% is used in paints, glues, dyes and other materials. 80% of the global market share of PVB resin is occupied by four companies including Solutia from the United States, Sekisui Chemical from Japan, DuPont from the United States and Kuraray from Japan.
Among them, Solutia's products are mainly used in the automotive and construction industries. Sekisui's products are mainly used in the automotive industry, while Kuraray and DuPont occupy an important position in emerging photovoltaic material applications. Due to the technical complexity of producing PVB resin, these four companies monopolize the demand for PVB resin for high-end products such as automotive and architectural safety glass diaphragms and aviation and electronics. The high price has enabled these multinational companies to obtain extremely rich profits. In the Chinese market, the price of PVB resin has reached more than 80,000 yuan/ton.
At present, the scale of PVB resin production enterprises in my country is relatively small, and more than ten PVB resin enterprises in the country produce about 72,000 tons of PVB resin in kind every year. The quality is average, and it is mostly used in the construction field. According to industry estimates, China needs more than 100,000 tons of PVB resin for safety glass every year. With the development of the high-rise building industry, the demand for PVB resin for curtain wall glass will show a significant growth trend. The use of PVB resin in other industries is also increasing, and the application field is expanding. It is estimated that the total demand for PVB resin in my country will reach 150,000 tons in 2022, corresponding to a market size of about 2.2 billion yuan, of which PVB resin for film will exceed 130,000 tons, and the demand for PVB resin in other industries will reach 20,000 tons.
In the first half of 2022, the actual output of Wanwei high-tech PVB resin products will be 8,300 tons.
(4) Redispersible latex powder
Redispersible latex powder is mainly used in construction fields such as external wall insulation, tile bonding, interface treatment, bonding gypsum, plastering plaster, building interior and exterior wall putty, decorative mortar, etc. It has a very wide range of use and a good market prospect. The promotion and application of redispersible latex powder has greatly improved the performance of traditional building materials, and greatly improved the adhesion, cohesion, flexural strength, impact resistance, wear resistance, durability, etc. of building material products, thus The construction products ensure the quality of construction projects with their excellent quality and high-tech content. At present, the production capacity of redispersible latex powder in China has reached 150,000 tons, and the demand is about 100,000 tons, and it is increasing at a rate of about 10% per year. The main suppliers are Wacker in Germany, Aksu in the United States, Dalian Chemical in Taiwan, and Wanwei High-tech. Mainly. According to statistics, there are more than 2 billion square meters of new buildings in China every year, and there are still tens of billions of square meters of stock buildings that need to be renovated. With the implementation of national building energy-saving laws and regulations and the vigorous promotion of ready-mixed dry-mixed mortar technology, as well as the restrictions on construction mortar mixing on site in various provinces and cities, the application of redispersible latex powder will be vigorously developed. It is expected that by 2025 Domestic demand can reach 200,000 tons.
In the first half of 2022, the actual output of redispersible latex powder products of Wanwei Huashan, a wholly-owned subsidiary of Wanwei High-tech, was 20,100 tons.
(5) PVA optical film
PVA optical film is the core film material of the polarizer, which is the key material of liquid crystal display. The polarizer is composed of multi-layer films, and its raw material cost accounts for 80% of the total production cost. The raw materials mainly include TAC film, optical grade PVA film, pressure-sensitive adhesive, Protective film and release film, of which TAC accounts for about 50% of the cost, optical grade PVA film accounts for 12%, glue 5-10%, protective film and release film 15%, chemical materials 5%, and other costs account for 10% . Due to the high technical content of PVA optical films, the global market is mainly monopolized by two Japanese companies, Kuraray and Synthetic Chemicals, of which Kuraray accounts for about 70-80% of the global production capacity and monopolizes the market for PVA raw materials for films. The remaining 20 % is almost mastered by Japanese Synthetic Chemistry. In China, only Wanwei High-tech and Taiwan Changchun Jian have a small amount of narrow-width film supply to the low-end market, with a market share of less than 1%, and there are no other manufacturers in the world. With the continuous transfer of global liquid crystal display production capacity to China, the competition in the domestic polarizer market is becoming increasingly fierce, major manufacturers are stricter in cost control, and the demand for localization of upstream raw materials is becoming increasingly urgent. In 2020, the actual demand for polarizers in my country based on production capacity is about 250 million m2, and the converted PVA optical film consumption is about 150 million m2. Considering the normal consumption of cutting and production, the corresponding demand is about 190 million m2, which corresponds to 25 yuan/m2 The domestic market size is about 4.8 billion yuan.
In the first half of 2022, the actual output of Wanwei high-tech PVA optical film products is 1,000,600 square meters. At present, Wanwei High-tech's new PVA optical film project with an annual output of 7 million square meters is about to enter the trial production stage.
(6) VAE emulsion
The appearance of VAE emulsion is milky white or slightly yellow. It has the advantages of permanent softness, water resistance, weather resistance, low temperature resistance, fast bonding speed, high bonding strength, safe and non-toxic use, etc. Products are widely used in adhesives, external wall insulation, building waterproofing, coatings, composite packaging materials, building cement mortar modification, non-woven fabric manufacturing, paper coating, and general adhesives for various polar and non-polar materials. Among them, adhesives are the most widely used field of VAE emulsion, and also the field with the largest market demand. At present, the global enterprises producing VAE emulsion mainly include Air Products of the United States, Celanese of the United States, Dalian Chemical of Taiwan, Richhold of the United States, Wacker Chemical (Korea), Beijing Organic Chemical Factory, Wanwei High-tech, Sichuan Chuanwei, and the total production capacity Reaching 2.14 million tons/year, another 206,000 tons/year production device is under construction, and 155,000 tons/year production device is planned to be built within two years. my country is a big country in the use of VAE emulsion, and it is also the fastest growing market. There is a large gap in domestic demand. With the rapid development of the domestic economy, especially the country's emphasis on building energy conservation and environmental protection, the market demand for VAE emulsion will continue in the future. Keep growing.
In the first half of 2022, the actual output of VAE emulsion products of Guangxi Wanwei, a wholly-owned subsidiary of Wanwei High-tech, was 44,000 tons. The VAE emulsion project with an annual output of 60,000 tons of Wanwei High-tech Headquarters is in the process of equipment installation.
Polarizers are mainly used on liquid crystal display panels, accounting for about 10% of the cost of TFT-LCD (thin film transistor liquid crystal display) panels. LCD imaging must rely on polarized light, and LCD liquid crystal display modules must contain two polarizers. There are two polarizers attached to both sides of the glass substrate in the liquid crystal display module. The lower polarizer is used to convert the light beam generated by the backlight into polarized light, and the upper polarizer is used to analyze the polarized light modulated by the liquid crystal to generate Contrast of light and dark, resulting in a display. Without any polarizer, the LCD module cannot display images. At present, the world's major manufacturers include NEC, Sumitomo Chemical, Sanli, PALANOTEC, LG Chem, Lite, etc. According to statistics, the global polarizer production capacity in 2020 is about 727 million m2, and the overall production capacity expansion has stabilized, and the market capacity has exceeded 12 billion US dollars. According to IHS forecast data, when my country's LCD panel construction and production lines are at full load, the total area of polarizers required is 438 million m2, while in 2020 my country's polarizer production capacity is only 285.8 million m2, and the gap between supply and demand reaches 152 million m2/year. However, my country's polarizer research and development technology is backward, which is not commensurate with the status of a large liquid crystal display production country. Most of the domestic production capacity is occupied by Japanese and Korean companies, and there is a huge space for domestic substitution.
As of the disclosure date of this report, the 7 million square meter polarizer project of Drago Company is about to enter the trial production stage.
2. The development of international polyvinyl alcohol
Global polyvinyl alcohol (PVA) production is mainly concentrated in a few countries and regions such as China, Japan, and the United States, with a total installed capacity of about 1.85 million tons, of which the Asia-Pacific region is the main production area, accounting for more than 80% of the world's total output. Representative companies in the world mainly include Japan Kuraray Co., Ltd., Japan Sekisui Chemical Industry Co., Ltd., Japan Synthetic Chemical Industry Co., Ltd., Anhui Wanwei High-tech Materials Co., Ltd., China Petrochemical Corporation, Taiwan Changchun Group, Inner Mongolia Shuangxin Environmental Protection Materials Co., Ltd. and Ningxia Dadi Recycling Development Co., Ltd., etc.
Installation status of major polyvinyl alcohol (PVA) products outside China in 2022
3. The development of domestic polyvinyl alcohol
The total production capacity of polyvinyl alcohol (PVA) in mainland my country is 1.096 million tons (excluding Taiwan), and China is the largest producer of polyvinyl alcohol in the world.
Production capacity summary table of domestic polyvinyl alcohol resin enterprises in 2022
After years of competition, the industrial concentration of the domestic polyvinyl alcohol industry has further increased, and the PVA product market has gradually concentrated on the advantageous enterprises with large production scale, high market share, strong research and development capabilities, advanced technology, long industrial chain, low cost and good benefits .
The leading enterprises in the PVA industry represented by Wanwei High-tech (600063.SH) have more and more obvious advantages in the current and future competitive landscape, and gradually become the vane leading the development of the industry.
In the first half of 2022, the actual output of Wanwei high-tech PVA products was 115,900 tons, of which new and special varieties accounted for 72.33%. Wanwei's high-tech production capacity accounts for more than 35% of the country's total production capacity, ranking in the leading position in the industry.
4. Global consumption structure of polyvinyl alcohol (PVA)
The global consumption structure of polyvinyl alcohol (PVA) is as follows: polymerization aids account for about 24%, polyvinyl butyral (PVB) accounts for about 15%, adhesives account for about 14%, textile size accounts for about 14%, paper pulp Materials and coatings account for about 10%.
China's consumption structure is as follows: polymerization aids account for about 38%, fabric size accounts for about 20%, adhesives account for about 12%, vinylon fiber accounts for about 11%, papermaking slurry and coating accounts for about 8%, and architectural coatings account for about 8%. 5%, other 6%. Polymerization aids, fabric size and adhesives are the main downstream consumer markets of polyvinyl alcohol.
In the first half of 2022, the supply and demand of ordinary domestic PVA products are basically balanced, and prices are rising steadily. Through technological innovation, the developed high-end polyvinyl alcohol products have created better economic benefits and made a greater contribution to the profit growth of enterprises.
5. Development trend of polyvinyl alcohol vinylon industry
With the introduction of new technologies, new processes, and new products, the continuous expansion of new application fields, and the gradual replacement of imported products, new development opportunities have been brought to the domestic polyvinyl alcohol vinylon industry. However, due to the increased export efforts of various enterprises, the adoption of low-end fierce competition, and with the adjustment of China's industrial structure, wages and other costs have risen, and environmental protection requirements have been high, some downstream industries, such as the labor-intensive textile industry, have been relocated to Southeast Asia. Demand growth has slowed, foreign consumption has increased, and exports have increased. After more than ten years of competition, integration and optimization, the industry is showing a new pattern of optimized production capacity, increased concentration, stable market varieties, slow growth in market demand, high technical barriers, few new entries, moderate competition, and innovative and technological development. The new balance between supply and demand has developed into a benign new format.
6. Development trend of special PVA products
In the first half of 2022, with the rapid development of PVA downstream industries such as PVA optical film, PVB film, polymerization aids, soil improvement, paper adhesives, ceramic adhesives, environmental protection, medicine and cosmetics, the demand for special PVA products It is very prosperous, and the special PVA products of industry leading enterprises represented by Wanwei High-tech (600063.SH) are developing rapidly, and they have increased the research and development of PVA fiber, PVB resin, PVA optical film, redispersible rubber powder and other products The production technology of PVA special varieties and extended products is becoming more and more mature, filling a number of gaps in the country. New PVA products are gradually being put on the market, and the market share is also increasing. Common varieties basically realize import substitution. The downstream consumption structure of the domestic PVA industry be further expanded.