Copper foil industry boom, copper foil enterprises usher in concentrated expansion and listing tide.
In the evening of February 22, 2022, Jiangxi Copper (600362) announced that the board of directors authorized the company and the management of Jiangtong Copper foil to start the preparatory work for the listing of the split Jiangtong copper foil, including but not limited to the feasibility of the demonstration, organizing the preparation of the listing plan, the development and implementation of the joint-stock reform plan, etc.
Copper foil is an important raw material for new electronic materials and new energy. Among them, electronic circuit copper foil is one of the important basic materials of copper clad plate, printed circuit board, the main product specifications are 10μm-140μm, printed circuit board is widely used in communications, optoelectronics, consumer electronics, automotive, aerospace and many other fields.
In the past year, many copper foil industry enterprises have greatly expanded production. Jiayuang Technology co., LTD. (688388) in November 2021 issued a private increase plan of 4.9 billion yuan for the construction of four copper foil projects with a total capacity of 81,000 tons. In February 2021, the company issued 1.24 billion yuan of convertible bonds to invest in the annual output of 15,000 tons of high-performance copper foil project, new high-strength ultra-thin lithium copper foil research and development and other key technology research and development projects. Hailiang Co., LTD. (002203) announced in November 2021 that it planned to invest and build a project of 150,000 tons of high-performance copper foil materials with annual output, including 120,000 tons of lithium copper foil and 30,000 tons of standard copper foil. The project investment is 8.9 billion yuan, including 6.9 billion yuan fixed asset investment and 2 billion yuan working capital. Nordisk (600110) announced on January 17 this year, to invest in the construction of Nordisk 100,000 tons of copper foil material production base in Huangshi Economic development Zone, Hubei province, the registered capital of the project 3.5 billion yuan, Nordisk shares as the only investor.
Tongling Nonferrous Metals (000630) copper crown copper foil (301217) listed financing is also to expand production. The IPO proceeds of 820 million yuan will be used for the construction of ultra-thin electronic copper foil project (Phase II) with an annual output of 20,000 tons for high-precision energy storage. Previously, the total production capacity of copper crown and copper foil was 20,000 tons.
Positive expansion of production from a higher industry prosperity, the performance of the relevant companies. For example, JiayuanTechnology is expected to achieve a net profit of 530 million yuan to 603 million yuan in 2021, an increase of 184.25% to 223.56%; Chaohua Technology (002288) is expected to achieve net profit of 118 million yuan to 130 million yuan in 2021, a year-on-year growth of 449.63% to 505.53%; Nordisk's performance is even better, with the company expecting a net profit of 390 million yuan to 420 million yuan in 2021, a year-on-year increase of 7,142% to 7,699%.
In general, the pre-growth performance of these listed companies is mainly due to the strong demand from upstream customers, the release of new capacity to improve production and sales, as well as the increase in copper foil processing fees, copper clad plate selling price and other factors that drive the increase in product gross margin. Copper crown copper foil also said on the investor interactive platform recently that the current supply and demand relationship of Copper foil in China is basically stable, and the supply of some products is relatively tight; Lithium battery manufacturers are basically in the state of order saturation, the demand for lithium battery copper foil is relatively strong.