In the field of modern coal chemical industry, Baofeng Energy, as a leading enterprise in China's coal-to-olefin production, constantly drives the high-end upgrading of the industry through technological innovation, fully taps the high-end value of coal resources, and keeps moving forward on the road of sustainable and green development. Recently, the company has also gained great recognition in the capital market. In the five trading days last week, the share price of Baofeng Energy rose by 10.45%, far exceeding the trend of -2.4 1% of the Shanghai Composite Index in the same period and significantly exceeding the average performance of the Shanghai Composite Index.
It is understood that in 20 19, the consumption of high-end polyolefin in China reached12.8 million tons, but the domestic self-sufficiency rate was only 45%. Changjiang securities predicts that the domestic market demand will reach15.95 million tons in 2023, and the market space will further grow steadily. After keenly capturing the blue ocean opportunity in the high-end market, Baofeng Energy started the road of "opening, hanging and upgrading" and continued to move towards the product layout of "high-end, differentiated and customized". The company's products have formed echelon product structures such as general material series, special material series, metallocene series and EVA series, initially established a production and development pattern of producing one batch, developing one batch and reserving one batch, and established a stage of large-scale production and customized production. At present, the company's special materials products have covered more than 10 products such as high-melting fiber materials, melt-blown materials, water supply pipe materials, thin-walled injection materials, small hollow materials and high-strength film materials, and are at the leading level in the field of coal-to-olefin production. In the first half of this year, Industry-University-Research cooperated closely, and newly developed middle and high flow impact-resistant polypropylene K8009 and K7726H for producing household appliances and auto parts, which were highly recognized by the market.
It is worth noting that in July this year, the company successfully trial-produced three brands of metallocene polyethylene products, including PERT pipe M3506RT, injection molding material M6040 and film material M23 10. All the indexes of the products meet the design standards, and it has become the first enterprise in China to successfully produce metallocene products by using double-ring pipe HDPE process. In recent years, as the "sweet cake" of high-end polyolefin market, metallocene has a high consumption growth rate, but its domestic output is less than 10%, and its import dependence is about 90%. Because of its unique excellent performance, metallocene products are mainly used to produce medium-thick packaging bags, floor heating pipes, injection molding and rotational molding products.
In addition, Baofeng Energy continues to expand its high-end production capacity. In order to fill the domestic gap, the company's third and fourth olefin projects in Ningdong will have an EVA production capacity of 250,000 tons/year respectively. It can produce products with VA content of 0-30%, and can be widely used in high-grade films, wires and cables, foaming materials, photovoltaic packaging and other fields. At present, the import dependence of EVA products is above 50%, especially the products with high VA content that can be used in photovoltaic packaging films, and the import ratio is higher. Under the national "double carbon" goal, photovoltaic power generation will usher in a wave of long-term high-speed growth, and high-end EVA products for photovoltaic packaging will also usher in a broader market space. The third phase of EVA plant will be put into production in the first half of 2023. After the third and fourth phases are put into production, the EVA production capacity of Baofeng Energy will reach 500,000 tons/year, which will further replace imports, improve the self-sufficiency rate and provide a stable guarantee for the country's clean energy transformation.
According to the current development plan, the olefin production capacity of Ningdong Base of Baofeng Energy will reach 3.2 million tons/year in the future, which will further ensure the energy security of China and accelerate the development of domestic coal chemical industry to the high end.