A few days ago, Renxin New Materials (301395. SZ) released its 2023 performance report, the company achieved revenue of 1.979 billion yuan last year, and the net profit attributable to the parent company was 55.7922 million yuan, and it is planned to distribute 10 yuan for every 10 shares converted to 4 shares, with a total cash dividend of 145 million yuan (tax included).
Founded in 2011, Renxin New Materials is mainly engaged in the research and development, production and sales of new polystyrene polymer materials (hereinafter referred to as "polystyrene"), with an annual production capacity of 300,000 tons of polystyrene series products, and is the second largest polystyrene manufacturer in South China and the sixth largest in China.
Renxin New Materials has R&D, production, technology and other advantages, the company's product quality is stable and reliable, has been widely recognized by customers, the company has passed the BYD supplier on-site audit, marking that the company has entered the field of new energy vehicles represented by BYD, and the future development will add new impetus.
"Polystyrene" faucet, leading technical strength
With the implementation of the domestic "double carbon" strategy, the optimization and upgrading of the industrial structure, and the change of consumption structure, the rapid development of electronic appliances, new energy vehicles, 5G technology, consumer electronics, integrated circuits and other industries is expected to drive the continuous growth of demand for upstream new materials.
Polystyrene is an important part of the polymer material industry and one of the key areas for the development of new material technology. With the development of the mainland economy and the continuous upgrading of polystyrene modification technology, the gradual implementation of policies such as "replacing wood with plastic" and "replacing steel with plastic", superimposed on the influence of trends such as household appliance consumption upgrading, automobile lightweight, and import substitution, the depth and breadth of polystyrene application continue to expand, and the demand for polystyrene in mainland China has maintained steady growth.
With the recovery of the global economy, especially the rise of emerging markets, it provides a broad market space for the polystyrene industry. According to the report released by Zhuochuang Information, the total demand of the mainland polystyrene market will reach 4.6319 million tons in 2023. At the same time, the improvement of environmental awareness and the popularization of the concept of sustainable development have made green and environmentally friendly polystyrene products gradually become the mainstream of the market, and also brought new growth points to the polystyrene industry.
More and more polystyrene producers are paying attention to environmental protection and sustainable development, and meeting market demand through technological innovation and product upgrades. As a leading polystyrene enterprise in the southeast region, Renxin New Materials is naturally well versed in this.
It is understood that the "high impact polystyrene" produced by Renxin New Materials has superior impact resistance and toughness, and the product grade is high, which is a high value-added environmentally friendly new material, which belongs to the key products of the national strategic emerging industries, especially the high-end new material import substitution market with "stuck neck", which is the direction of domestic enterprises.
After years of accumulation and precipitation, Renxin New Materials now has 8 core product formulas, 9 proprietary technologies and 23 equipment technology patents, and is one of the few polystyrene specialized production enterprises in the industry that can provide "multi-variety, multi-brand, and multi-directional fields".
In the field of general-purpose polystyrene (GPPS), in addition to GPPS general material products, Renxin New Materials also has the production capacity of GPPS special material products, and the revenue of special materials accounts for nearly 50% of the total GPPS product revenue. The company enjoys a high reputation in the market of GPPS special materials with special requirements for high light transmittance, anti-yellowing and ultraviolet irradiation, such as light guide plates and diffusion plates. In the past three years, the company has gradually supplied special materials for transparent internal parts of polystyrene refrigerators to downstream large-scale refrigerator and household appliance enterprises.
In the field of high-impact polystyrene (HIPS), Renxin New Materials is now focusing on HIPS ordinary materials, and in 2023, it will focus on launching HIPS special materials for refrigerator liner plates and HIPS special materials for high-gloss shells, and strengthen its competitiveness in the fields of new energy vehicles, medical equipment, electronic carrier tapes and food packaging. Based on the technical reserves in the early stage, the company has formed a first-mover advantage in this field.
With many advantages in R&D, production, technology and other aspects, Renxin New Materials and its products have been recognized and affirmed by more and more customers. According to the company's disclosure, Renxin New Materials has passed the on-site audit of BYD's suppliers, marking that the company has the prerequisites for entering BYD's supply chain system, and also means that the company's products have the performance and quality applied to the field of new energy vehicles. Being able to obtain the recognition of new energy head enterprises shows the strength of Renxin New Materials.
Focus on the mid-to-high-end market and seize a larger market share
According to reports, Renxin New Materials has proprietary technology for polystyrene production, advanced equipment and fully automated DCS control system, and ranks in the forefront of the domestic industry with its strong production capacity and high-end quality.
Up to now, Renxin New Materials has a total annual production capacity of more than 30 tons, and the total production capacity is mainly medium and high-end polystyrene series products, and the company is the second largest polystyrene manufacturer in South China and the sixth largest in China.
It should be noted that the top-ranked production capacity scale is conducive to enterprises to seize a larger market share, enhance their own popularity, and obtain better cooperation conditions when cooperating with the upstream and downstream of the industrial chain. This is not only conducive to the continuous improvement of Renxin New Material's operating performance, but also will continue to improve the company's market influence and industry position.
In addition, the production capacity of polystyrene in mainland China has been expanding in recent years, but due to product performance and product quality, the main expansion of production capacity application scenarios is still in the low-end market. The overall product structure presents the problem of sufficient supply and fierce competition of low-end products, while insufficient production capacity of high-end products.
Renxin New Materials, which is good at perceiving market changes, has already deployed this. Renxin New Materials expects that the third phase of the new polystyrene material project with an annual output of 180,000 tons will be put into operation by the end of 2024, with a total recorded production capacity of more than 480,000 tons. Taking into account the operational flexibility of the device, the company will have a maximum annual production capacity of 560,000 tons, and the new production capacity will be biased towards mid-to-high-end products with GPPS special materials such as diffusion plates and light guide plates as the core, as well as high-gloss and low-temperature resistant HIPS special materials.
Renxin New Material's forward-looking and targeted capacity expansion layout is conducive to the company to further expand its market share, lead the industry to the high-end polystyrene market to gradually expand and focus, and enjoy the industry dividends.
From the perspective of comprehensive product structure, technology and production capacity, Renxin New Materials is expected to rapidly develop into a polystyrene enterprise with great market influence nationwide.
Lanfu Financial Network noted that the recent intensive release of favorable policies such as the trade-in of consumer goods is expected to promote the growth of demand for engineering plastics in related fields. According to the "Action Plan for Promoting the Trade-in of Consumer Goods" issued by the Ministry of Commerce, 22 measures have been launched, such as carrying out the trade-in of automobiles and household appliances, and promoting the "renewal" of home decoration, kitchen and bathroom. The trade-in action is expected to release huge market space and benefit the development of related industries.
According to the analysis of Kaiyuan Securities, the above-mentioned plan is expected to boost the growth of demand for engineering plastics in the fields of automobiles and home appliances in the fields of automobiles and home appliances in the mainland, such as "giving fixed subsidies to consumers who scrap high-emission passenger cars or eligible new energy passenger vehicles and purchase new energy vehicles that meet energy-saving requirements" and "supporting home appliance companies to give preferential treatment to consumers who exchange old household appliances for energy-saving household appliances". In this context, Renxin New Materials is expected to usher in major development opportunities.
Timely announcement of dividend plans to demonstrate the responsibility and responsibility of listed companies
As a responsible listed company, Renxin New Materials recently announced the 2023 dividend plan, planning to increase 10 yuan (tax included) by 10 to 4 distributions, and give back to investors through dividends. This not only reflects the company's sense of responsibility to shareholders, but also demonstrates the company's long-term value.
Previously, the State Council issued the "Several Opinions on Strengthening Supervision and Risk Prevention and Promoting the High-quality Development of the Capital Market", emphasizing "strengthening the supervision of cash dividends of listed companies". With the disclosure of annual reports, more and more listed companies have announced their 2023 dividend plans.
Renxin New Materials has also become the most active responder and practitioner of the policy, and the company released the 2023 dividend plan in a timely manner, highlighting the responsibility and responsibility of listed companies, and sharing the joy of the company's growth with the majority of shareholders.
Industry insiders said that in the context of the current listed companies generally attaching importance to "improving quality and efficiency and emphasizing returns", the listed companies that took the lead in proposing dividend plans undoubtedly sent a positive signal to the market. Dividends are not only a direct return to investors, but also help to enhance investor confidence, cultivate the concept of long-term investment, and help to enhance the image of listed companies.
Overall, Renxin New Materials, which has advantages in R&D, production and technology, is expanding in the mid-to-high-end polystyrene market, and is expected to seize a larger market share in the future and enhance the company's profitability and industry influence. Renxin New Materials, with great strategic vision and market insight, has a promising future!