Yanjiang Co., Which Supplies Meltblown Non-Woven Fabrics For Mask And Protective Clothing Enterprises, Made A Net Profit Of 275 Million In The First Half Of The Year!

Xiamen Yanjiang new materials Co., Ltd. (hereinafter referred to as "Yanjiang shares") disclosed the performance forecast of the first half of 2020 in the evening of July 13. The company expects to make a profit of 275 million yuan to 355 million yuan during the reporting period, which is 520.28% - 700.72% higher than that of 44.3351 million yuan in the same period of last year.

As for the reasons for the performance change, Yanjiang explained that: Despite the impact of the epidemic, the company's traditional main businesses such as PE perforated film and perforated hot-air non-woven fabric still maintained steady growth. During the reporting period, the demand for masks increased sharply, while the key material for mask production, melt blown non-woven fabric, was in short supply. The company set up an emergency project and set up a meltblown non-woven fabric project team to develop melt blown non-woven fabric in a short time by using its own technical advantages. The company began to sell in mid February 2020 and expanded its production capacity from March to April. During the period of melt blown fabric, the company's sales increased significantly.

According to the public information, Yanjiang Co., Ltd. was established in 2000, mainly engaged in the R & D, production and sales of disposable sanitary products surface materials. Its main products are perforated nonwovens and PE perforated films, which can be used as surface materials of disposable sanitary products such as sanitary napkins and baby diapers. The perforated nonwovens are mainly hot air nonwovens, which are dry, breathable and soft. They are mainly used in the surface and bottom materials of high-end disposable sanitary products. PE perforated membrane can be divided into vacuum and mechanical drilling. It has good softness and permeability and strong material comfort.

According to the financial report, in recent years, the operating revenue of Yanjiang shares has maintained a steady growth. In 2019, the company realized revenue of 1.038 billion yuan, a year-on-year increase of 35.48%, and the net profit attributable to shareholders of listed companies was 82.31 million yuan, with a year-on-year increase of 69.32%. The company optimized the customer structure of PE perforated membrane, and expanded more overseas customers for perforated non-woven products, which accelerated the growth of revenue in 2019. The optimization of customer structure led to the growth of gross profit rate and the growth rate of net profit was higher than the income.

At the beginning of 2020, the new crown pneumonia epidemic broke out, the demand for masks and protective clothing increased rapidly, and the price of melt blown non-woven fabrics increased significantly. In February of 20, Yanjiang company announced to transform the production of melt blown non-woven fabrics, including civil and medical meltblown fabrics. The profitability was improved, and the overall income and profit increased significantly. In the first quarter of 2020, the operating income of Yanjiang Co., Ltd. increased by 17.89% year-on-year, and the net profit increased by 344.81% year-on-year. The net profit growth rate was higher than the income, which was mainly due to the significant rise of melt blown non-woven fabric price and strong profitability.

Li Guangjiang Film Co., Ltd. is expected to slow down the growth rate of overseas customers in 2021, which is expected to slow down compared with the growth rate of overseas customers, such as DPJ, which is expected to see a significant growth in revenue growth compared with that in 2021.

According to the observation, in recent years, the competition in the perforated non-woven fabric industry has intensified, and the income growth rate is relatively low. It is estimated that Yanjiang shares will continue to expand downstream customers, strengthen product R & D and upgrade, and promote the steady growth of income from perforated non-woven fabrics, and the gross profit margin is basically stable. In addition, other income of Yanjiang Co., Ltd. mainly includes hot-air non-woven fabrics, non-woven fabric waist stickers and other products, which will be released from February 2020 The company gradually put into production melt blown non-woven fabric, mainly used for mask production, benefited from the significant growth of downstream demand. The company's melt blown non-woven fabric supply is in short supply, and the income elasticity is large in 2020, and the gross profit rate is increased year on year. It is expected that the demand for meltblown non-woven fabric of Yanjiang Co., Ltd. will decrease after the end of the epidemic in the next two years, other business income will decline year-on-year, and the gross profit rate will return to normal level.

At the same time, Yanjiang has strong R & D strength, and its downstream customers mainly include leading enterprises of sanitary products such as Kimberly Clark, Heng'an and P & G. in 2019, the sales of the top five customers accounted for 86.15%, with a high customer concentration. The company provides customized products and general products to large customers such as P & G, Kimberly Clark and Heng'an, and cooperates with customers to develop new products and sell standardized general products to other customers. After more than ten years of operation and cooperation, the company has established a stable cooperative relationship with its main customers, and constantly expand new customers, driving the overall revenue growth.

Li Jie said frankly that the new crown pneumonia epidemic in 2020 will significantly increase the demand for protective articles, which will drive the rapid growth of the demand for upstream nonwovens and attract market attention. From the perspective of R & D opportunities, China's nonwovens industry is expected to have a strong demand for high-quality products in the near future.