On February 10 and February 13, Five Continents Special Paper accepted the survey of 14 institutions and units, including Xingye Securities, Haitong Securities, Dongzheng Ronghui and Xingtai Investment, and answered the questions raised by the research institutions.
Performance in 2022 and outlook in 2023
The rise in raw material prices in 2022 led to a large increase in production costs, and the operating efficiency decreased compared with that in 2021. If the price of raw materials can fall in 2023, it will have a good positive impact on the cost side.
Since this year, the consumer side of society seems to have recovered. The company's order is relatively stable. On the cost side, the company uses mechanical pulp and chemical pulp, which is divided into coniferous pulp and broadleaf pulp. The pulp price is expected to decline after the supply of broadleaf pulp is increased overseas. The company uses a large amount of mechanical pulp. Because of the large amount of mechanical pulp, the company has taken many measures to save the cost of pulp by opening up domestic procurement channels and speeding up the construction of its own mechanical pulp production line. The price of steam coal has declined recently. If this situation can be maintained, it will be conducive to the improvement of energy costs this year.
Q: Where does the company purchase wood chips?
A: Through domestic and import procurement.
Q: Has the downstream bargaining power been gradually improved through structured products, good services or differentiated content?
A: Brand orders: food cardboard has a high degree of segmentation, and has business relations with many well-known brands. These customers have strong stickiness.
Market orders: They will fluctuate with the market, but the overall proportion is low.
Q: Are there any new customers for food cardboard?
A: Several well-known brands will be added this year.
Q: What is the current domestic capacity pattern of heat transfer paper?
A: At present, the major manufacturers of heat transfer paper in the market include Xianhe, Five Continents, Jianghe and Guanhao Hi-Tech. The low-weight products are the increment of the industry and have strong competitiveness.
Q: The annual increase of the total output of food paperboard according to the China Paper Yearbook may be several hundred thousand tons. In recent years, leading enterprises such as Five Continents and Xianhe have put into production, but the demand and growth are not so large. Is it crowding out the share of some small and medium-sized manufacturers or what?
A: The food paperboard industry is relatively special, and the entry threshold is relatively high. The main reason is that brands need time to develop, and the cycle is very long. It is not easy to make products at the beginning. It may start from market orders, and the operation time is long.
Q: Is European production capacity decreasing in the short term or in the long term?
A: Long-term. The first reason is that the capacity is decreasing; The second reason is that they are less competitive than Chinese suppliers.
Q: Are export products mainly sold to Europe?
A: There are businesses in Europe, America and Southeast Asia.
Q: Will there be a big gap between the concentration of customers in Glassing and food cards?
A: Glassine paper: Most of the global label giants are European companies, and customers of Five Continents Special Paper include most of them.
Food paper: The relative concentration is not so high. There are various types, and international giant customers and domestic well-known brand customers.