In the first quarter of 2020, affected by the COVID-19 epidemic, the market in all walks of life was quite bleak. Affected by factors such as delays in starting construction, obstruction of logistics and transportation, and declining market demand, the overall environment this year is facing severe challenges.
As the saying goes, some people are happy and some are sad. Affected by this year’s epidemic, it is difficult for most businessmen to do business, but for the plastics industry, 2020 is definitely an opportunity . As an indispensable item to protect against the new coronavirus, masks have always been at a high sales volume. As the core part of masks, the market price of melt-blown cloth has soared to unprecedented heights.
How much do manufacturers of melt-blown materials make? Is it really as huge a profit as rumored in the market?
01 Shandong Dawn Polymer Materials Co., Ltd.
The picture resource comes from Dawn’s first quarter report of 2020
From the report, we can see that Dawn’s net profit reached 6939w, an increase of 91.60% compared with 3622w in the same period of previous years. The profit proportion also increased from 5.38% last year to 11.21%.
Screenshot from Oriental Fortune
As of April 26, 2020, Dawn Company (parent company) has a polypropylene spray production capacity of 500 tons/day, and its holding subsidiary Qingdao Haier New Materials R&D Co., Ltd. has a polypropylene melt-blown production capacity 30 tons/day, and the joint-stock company Daehan Polymer Materials (Shanghai) Co., Ltd. has a polypropylene melt-blown material production capacity of 80 tons/day.
The company held the “Daun Share Mask Cloth Polypropylene Meltblown Material Expansion” on April 26, 2020 Project Ceremony”, the company (parent company) has ordered the production equipment required for new production capacity. It is expected that the new production capacity will be 700 tons/day within one month. After the production line reaches capacity, the polypropylene meltblown material production capacity will reach 1,200 tons/day. In the second quarter, Dawn Group may reach new highs. (Data source from Dawn Group’s corporate announcement)
02 Shanghai Plite Composite Materials Co., Ltd.
Since the outbreak of the epidemic, the company has focused its efforts on polypropylene materials dedicated to melt-blown cloth. The important strategic policy has achieved fruitful results in the first quarter of the company.
Image resources come from Plite’s first quarter report of 2020
The company’s net profit in the first quarter was 52.37 million, an increase of 112.01% compared with the same period last year. In terms of pure numbers, it more than doubled.
03 Kingfa Technology Co., Ltd.
Image resources come from Kingfa’s first quarter report of 2020
From a profit perspective, it decreased by 36.91% compared with the same period in previous years. As a giant company, although what is reflected in the first quarter report is not as surprising as other companies.
Affected by the suspension of work, Kingfa Technology Co., Ltd. officially began to resume work on February 10 after obtaining government consent. On February 23, Yuan Zhimin, chairman of Kingfa Technology, said that 80% of employees have returned to their jobs. Since the end of February, Kingfa Technology has made great efforts, especially in the subsequent golden period. Sales in April will surely reach a peak. We look forward to Kingfa Technology bringing a surprise to the entire plastics industry in the second quarter.
04Qingdao Guoen Technology Co., Ltd.
In early April At that time, according to Flush Financial Research Center, Guoen Company was currently in full-load production, with an operating rate of 100%. However, the production capacity still cannot meet the market order demand. The company urgently ordered 8 production lines. When all new production lines are started, the company’s meltblown material production capacity is expected to reach 400 tons/day.
Image resources come from Guoen’s first quarter report of 2020
From the report, in terms of net profit, it reached 10189w in the first quarter, an increase of 28.18% compared with 7949w in the same period last year. Moreover, after April, the company urgently added 8 production lines, and may report in the second quarter. Zhongneng can bring you more shocking results.
Although the first quarter reports of each company did not directly reflect the benefits brought by meltblown materials during this period, itThe company’s current main business must be melt-blown materials. In the subsequent semi-annual reports, it can be clearly seen how much each company shared in the meltblown material cake in the first half of 2020.
With the entire market depressed, various meltblown material manufacturers have experienced a certain degree of growth from output to sales volume, from revenue to net profit. The expected huge profits have been achieved, but this has not yet reached the golden period of the meltblown material market. In addition, it is affected by factors such as delays in the resumption of work by enterprises and obstruction of transportation.
In the second quarter, the melt-blown material market reached a peak in April. Whether it was raw materials, melt-blown materials, melt-blown cloth, or masks, prices continued to soar. The market Demand has increased significantly. Since late May, although the price of melt-blown materials has stabilized, the price of raw materials has also dropped to a very low level, and the profits are still considerable. In addition, many small companies have withdrawn from the meltblown material market. It remains to be seen whether major companies can achieve new success in the subsequent market. </p
