Sidley Xintai: Stainless steel and alloy steel production capacity may increase by 40,000 tons next year
On October 22, Sidley Xintai New Materials Co., Ltd. (hereinafter referred to as “Sidley Xintai” or the “Company”) issued an announcement stating that on October 21, the company accepted Penghua Fund, China Securities, China Southern Fund, and other institutions Investor-specific research. Sidley Xintai said that the company’s capacity planning is not one-sided, but refined, special, and new. The company’s new production line will be put into operation in the first quarter of next year and will run at full capacity in the second quarter. The design capacity of the new production line for stainless steel and alloy steel is 50,000 tons, and it is estimated that the overall increase should be 40,000 tons next year.
The following are the main contents of investor relations activities:
1. Who are the main customers of the company?
A: The company specializes in the thermal power market, and its main customers are the three major domestic powerhouses:
1. Harbin Electric’s Harbin Electric Boiler;
2. Shanghai Electric’s Shanghai Boiler;
3. Dongfang Electric’s Dongfang Boiler. These three major boilers are the main domestic enterprises that manufacture supercritical and ultra-supercritical power station boilers.
2. How much of the increase in demand for the stainless steel industry will be brought about by supercritical and ultra-supercritical technologies in the future?
Answer: In September this year, the state has a relatively clear definition of coal power. Developing low-carbon clean energy is mainly reflected in the supercritical and ultra-supercritical technology power plant boilers. Its coal utilization efficiency and the coal consumption of the entire power generation are both Significantly higher than ordinary subcritical technology. The steel used in supercritical and ultra-supercritical technologies, mainly high-grade materials, is increasing because its temperature and pressure are increased, and the material grades are also increased. The overall amount of high-grade materials used in supercritical and ultra-supercritical technologies should be significantly increased relative to subcritical technologies.
3. What is the company’s production capacity planning?
A: What the company pursues is not one-sided bigness, but refinement, specialty, and innovation. The company has been listed as a national-level specialized and new small giant enterprise, which is also the result of the company’s long-term efforts in the coal power market. At present, the company’s annual production capacity of T91 and T92 is about 20,000 to 30,000 tons, and stainless steel is about 15,000 tons. The company will definitely maintain or even make breakthroughs in the old production line next year.
The new production line will be put into operation in the first quarter of next year and will run at full capacity in the second quarter. The design capacity of the new production line of stainless steel and alloy steel is 50,000 tons, of which 30,000 tons are super stainless steel and 20,000 tons are T91 and T92 high-alloy steel. It is estimated that the overall increase should be 40,000 tons next year.
4. What is the competitive landscape of the industry?
Answer: There are relatively few participants in high-grade materials:
1. The threshold is high. If an enterprise wants to develop this material, it must first obtain the approval of the Boiler Plant Materials Research Institute and do more than 10,000 hours of high-temperature creep experiments. , can only be used if qualified.
2. It is difficult to manufacture. The difficulty of T91, T92, and super stainless steel is mainly in processing because high-grade materials have high requirements for temperature sensitivity, impurity ratio, and positioning of the entire process. Once there is a deviation, it will cause material damage. Defects and scrap, if the yield is not high, may bring down the entire profit.
3. Market competition.
5. What is the reason for the improvement in the company’s performance in the third quarterly report?
A: Compared with last year’s third-quarter report, the company’s gross profit margin has increased mainly because
1. The amount of stainless steel and super stainless steel is increasing, and the gross profit margin of stainless steel is relatively higher than that of alloy steel.
2. In the first two months, the raw materials in the steel market declined, because the domestic large-scale infrastructure construction is relatively slow, and the company’s upstream steel mills have tight orders. At this time, the price of raw materials has loosened, which has provided an increase in the company’s gross profit margin. space.
6. What is the production and sales structure of the company’s three categories?
A: The company’s total output has not increased much this year, but the company’s product structure has changed a bit, and the amount of stainless steel has increased.
7. How about the localization of super stainless steel?
A: The substantial localization was last year and this year. Compared with imported materials, domestic materials have an advantage in price and a faster delivery cycle. After the overall localization rate has been improved, the quality has been tested in practice.
At present, the proportion of super stainless steel imported by the three major boiler plants is still very high, mainly because of the power system, and some units still have reservations about the domestic steel market. Under the background that the country is stimulating domestic demand and promoting internal circulation, the localization rate will gradually increase.
8. What is the future outlook for the high-end materials and general materials market?
A: The domestic steel industry has developed to the present and is gradually moving from a big steel country to a strong steel country. In the past, steel mainly pursued scale, and large-scale infrastructure brought demand for some ordinary high-quality carbon steel; now with the in-depth upgrading and transformation of various industries, the use of high-grade materials will increase, and the scope of application will become wider and wider. Therefore, in the fundraising and investment projects, the company did not simply expand the volume but pursued the expansion of the volume of high-end materials.
As for the general market, after the introduction of supercritical and ultra-supercritical technologies, the demand for materials in the general market will also increase, but because there are fewer ordinary boilers, the stock of ordinary materials in the original market must be subtracted. But overall demand in the general market should increase.
9. What are the specific categories of super stainless steel products?
A: Supercritical and ultra-supercritical use two kinds of super stainless steel, one is super 304, and the other is HR3C. TP347H and TP347HFG are mainly used below subcritical, and the temperature is slightly lower than that of super stainless steel.