Zhejiang Runtu Co., Ltd. (hereinafter referred to as “Runtu Shares”) disclosed on the evening of January 26 that recently, the People’s Government of Guanyun County, Jiangsu Province issued a notice to the Lingang Industrial Zone Management Committee and relevant county departments. “Notice on the resumption of production of Jiangsu Mingsheng Chemical Co., Ltd. (hereinafter referred to as “Jiangsu Mingsheng”)”, in principle, Jiangsu Mingsheng agrees to resume production.
According to the announcement, in April 2019, according to Lianyungang’s plan to carry out a special project for centralized rectification of chemical enterprises According to the relevant documents of the action, Jiangsu Mingsheng, a subsidiary of Runtu Co., Ltd., temporarily suspended production for rectification. During the suspension of rectification, Jiangsu Mingsheng took effective measures to actively implement the rectification requirements. Previously, Jiangsu Mingsheng’s pre-starting plan and various preparations had been approved by Guanyun County. Check by the Chemical Management Office. Jiangsu Mingsheng has also made preparations for an orderly resumption of production.
The reporter consulted the information and learned that Jiangsu Mingsheng was established in 2005. The company is located in Lingang Industrial Zone, Guanyun County, focusing on the intermediate research, development, production and sales of reactive dyes. As a pilot enterprise for the integration of informatization and informatization in Jiangsu Province, the company has won the “Annual Tax Contribution Award” issued by Guanyun County Government many times.
The financial report shows that due to the temporary suspension of production, in the first half of 2020, Jiangsu Mingsheng’s operating income reached 62519.38 yuan, with a net profit loss of 46.9921 million yuan.
Industry insiders believe that the increase in environmental protection requirements in the dye industry has led to a contraction in the supply of backward production capacity, further aggravating the dye consolidation process and leaving the industry in short supply. Runtu Co., Ltd. has obvious advantages in the recycling and recycling of wastes. With the further implementation of supply-side reform under the high pressure of environmental protection, industry leading companies including Runtu Co., Ltd. will fully benefit.
Li Xuan, an analyst at CICC, introduced that Runtu Co., Ltd. has continued to increase investment in environmental protection management and has successively carried out multiple environmental protection projects such as organic waste gas RTO incineration. Through the application of new environmental protection technologies and promotion to further enhance the “three wastes” treatment capabilities and reduce treatment costs. At the same time, the company continues to improve the intermediate production process and promote the upgrading of dye production process. Ruihua Chemical’s overall relocation project of high-end reactive dyes with an annual output of 100,000 tons (the first phase is 80,000 tons) started trial production in May 2019. As of the end of 2019, the production load has reached 80% of the designed capacity. The project’s production technology and The equipment automation level leads the industry. In the future, under the industry competition situation where environmental protection is becoming stricter and small and medium-sized production capacity is cleared, it is expected that continuous process upgrading and investment in safety and environmental protection will further strengthen the core competitiveness of Runtu Co., Ltd.
Zhang Wenlong, a researcher at Huachuang Securities, pointed out that after the supply-side reform and the industry clearing out of the 2017/18 environmental protection inspection, the dye industry has formed a high degree of concentration, and the profits of the industry chain are focused on the upstream. pattern. With leading manufacturers holding the bargaining power, dyes and dye intermediates can show extremely high flexibility when catalyzed by environmental protection/maintenance/prosperity and other events. In 2019, the dye center was supported by the cost of upstream intermediates and moved up to a historical high. In 2020, demand from the downstream textile and apparel industry bottomed out, dragging the prices of dyes and dye intermediates downward. Looking forward to 2021, the emergence of an inflection point in downstream textile and apparel + macroeconomic recovery will drive demand growth, and the support of dye intermediates is still there. The industrial chain will drive a new round of prosperity from the bottom up, and there is room for substantial price increases for dyes.
Zhang Wenlong predicts that price increases in the first half of this year will still be an important clue. The industry needs to actively seek solutions to valuations under the premise of competition barriers + track quality. Among them, the degree of prosperity Inflection points and high growth rates are two effective ideas.
It is understood that the dye dispersion black WNN150% has been running smoothly recently, and the price of reactive black WNN150% has been raised twice within a week to 20,000 yuan/ton, and the price bottom is gradually emerging. On the demand side, printing and dyeing factories have sufficient stocks and there are few orders approaching the holidays. Most of the quotations from dye companies are stable. Since the end of 20, the recovery of the domestic downstream chemical fiber and printing and dyeing industries has gradually determined the bottom of the dye industry. With the introduction of vaccines and the recovery of overseas economies, it is expected to accelerate the recovery of the dye bottom. The current weak price trend of dye intermediates is mainly due to the challenge of imports from India and the drag on the low prosperity of dyes. Resorcinol prices have fallen due to the acceleration of the launch of Black Cat’s 10,000-ton production capacity in August. So far, it has dropped from a relatively high point of nearly 30,000 yuan/ton to 87,000 yuan/ton. H-acid prices continue to fluctuate at the bottom, and the overall boom is Lows.
Public information shows that as a domestic dye production scale, Runtu is second only to Zhejiang Longsheng shares, formerly Shangyu County Dyeing Chemical Auxiliaries Factory established in 1986, its main products are textile printing and dyeing auxiliaries; in 1996, the company completed the adjustment and technology transfer of key product structures from auxiliaries to disperse dyes and was restructured into Zhejiang Runtu Chemicals Group Co., Ltd., the company has been implementing the “backward integration” development strategy and has formed a complete industrial chain from thermoelectricity, steam, chlorine, caustic soda, to intermediates, filter cakes, dyes, etc., with significant cost advantages.
Currently, Runtu Co., Ltd. has a total annual dye production capacity of 210,000 tons, of whichThe production capacity of loose dyes is 110,000 tons, the production capacity of reactive dyes is 80,000 tons, and the production capacity of other dyes is nearly 20,000 tons. The sales market share of dye products ranks among the top two in the domestic dye market share. It is one of the largest dye production bases in the world. Zhejiang Longsheng together formed an oligopoly situation in dye supply.
The financial report shows that in the first three quarters of 2020, Runtu The company achieved operating income of 3.654 billion yuan, a year-on-year decrease of 28.46%; net profit was approximately 557 million yuan, a year-on-year decrease of 48.33%.
As of the press release of the First Textile Network reporter this evening, Runtu shares closed at 9.93 yuan per share, a decrease of 2.84%, with a market value of 11.4 billion yuan.
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