With the increasingly strict national environmental protection policy, the implementation of the "plastic limit order" or "plastic ban order" in various places and the continuous improvement of social environmental protection concepts, the demand for paper products packaging industry is strong, and paper products packaging manufacturers are raising funds through the capital market to expand production capacity.
Recently, China's paper products packaging leading enterprises Zhejiang Dashengda Packaging Co., LTD. (hereinafter referred to as "Dashengda") fixed increase program received feedback from the CSRC. Dashenda intends to raise no more than 650 million yuan to invest in pulp molding environmental protection tableware intelligent research and development production base and other projects. Not only that, in 2022, a number of paper products packaging industry companies sprint to IPO to complete the capacity expansion strategy with the help of the capital market. On July 12, 2022, Fujian Nanwang Environmental Protection Technology Co., LTD. (hereinafter referred to as "Nanwang Technology") submitted the prospectus for the initial public offering of shares on the GEM. According to the prospectus of Nanwang Technology, the GEM listing intends to raise 627 million yuan. Industry experts said that the industry continues to expand production capacity, indicating that enterprises are very optimistic about the market's future expectations, but still face costs and other pressures need to do a good job of reducing costs and increasing efficiency.
The policy promotes "replacing plastic with paper" to go fast
Paper packaging refers to the commodity packaging made of paper and pulp as the main raw materials, which has the characteristics of high strength, low moisture content and low permeability. The paper used for food packaging should also have sanitary, sterile, pollution-free impurities and other conditions.
With the improvement of people's environmental awareness, many countries have issued "plastic limit order" or "plastic ban order". For example, New York State of the United States will implement the "plastic ban order" on March 1, 2020; Eu member states will ban the use of single-use plastic products from 2021; China issued the "Opinions on Further Strengthening the control of Plastic Pollution" in January 2020. Under the guidance of policies such as the "Plastic limit Order", "Opinions on Accelerating the green transformation of Express Packaging", and "Notice on the issuance of the" 14th Five-Year Plan "plastic pollution Control Action Plan", the demand for paper-based products is expected to rise significantly.
The use of plastic products in daily life is gradually limited, and green packaging will become an important development trend in the packaging industry. Specifically, the market demand for food grade cardboard, environmentally friendly paper plastic lunch boxes, etc.; Environmentally friendly cloth bags and paper bags are promoted and used in shopping malls, supermarkets and other places.
Dashenda said that in recent years, the implementation of policies such as the "plastic limit order" has made the demand for the entire paper products packaging industry continue to increase. At the same time, the company as a leading enterprise in the industry has a strong strength, expansion and development in line with the company's long-term development goals. Nanwang Technology said that the fundraising is mainly used for the annual output of 2.247 billion green paper products smart factory construction projects. The implementation of the project will further meet the market demand.
Qiu Chenyang, a researcher at the Puhua Industry Research Institute, said that the industry continues to expand production capacity, indicating that enterprises are very optimistic about the future of the market. Whether it is the rapid development of the national economy, the export of products, the future development of e-commerce, or the implementation of the "plastic limit order" policy, it will provide huge market opportunities. Based on this, leading enterprises in the industry increase the scale of investment to enhance market share, maintain market competitiveness, and achieve economies of scale.
In fact, the demand for packaging paper is inseparable from the changes in the demand of downstream consumer industries. In recent years, the performance of food, beverage, household appliances and other industries has been eye-catching, effectively driving the growth of the paper packaging industry. Qiu Chenyang said that in recent years, with the gradual transfer of the global packaging industry to developing countries and regions, China's paper products packaging industry has become increasingly prominent in the global paper packaging industry, has become an important paper products packaging supply country in the world, and the export scale continues to expand.
In the view of the industry, paper products have a high substitution role for plastics, and it is expected that the demand for paper packaging products will increase significantly between 2020 and 2025.
Competitive enterprises continue to expand the scale of production
Statistics from the China Packaging Federation show that in 2020, the total import and export volume of China's paper products packaging industry is 6.760 billion US dollars, of which the export value is 6.613 billion US dollars, an increase of 4.08%. In 2021, the total import and export volume of China's paper products packaging industry was 8.840 billion US dollars, of which the export value was 8.669 billion US dollars, an increase of 31.09%.
Under the background of strong demand, paper packaging enterprises continue to expand production capacity, and industry concentration continues to improve. Dashenda said that after the project of intelligent R & D and production base of paper pulp molding environmental tableware, it will have an annual production capacity of 30,000 tons of paper pulp molding environmental tableware. After the construction of Guizhou Renhuai Baisheng intelligent paper wine box production base, it can achieve an annual output of 33 million fine wine boxes and 24 million card box products. Hexing Packaging also focuses on the development of paper and plastic packaging capacity, preliminary planning of Thailand factory and Shanghai Minhang factory pulp molding production line.
In addition, Nanwang Technology is rushing to IPO. Nanwang Technology expects that after the implementation of the smart factory construction project, the production capacity bottleneck will be effectively cracked and the production capacity will be significantly increased to meet the growing market demand; With the help of new products with high technology content and high added value, the company can effectively open up new profit growth points, expand market share and maintain market dominance.
At present, many enterprises based on pulp molding are accelerating the layout of pulp molding business. For example, Yutong Technology, whose pulp molding capacity has begun to expand, plans to invest 400 million yuan in Haikou National High-tech Industrial Development Zone to build an environmental protection industry demonstration base, research and development, production and sales of plant fiber molded products and high-end paper packaging, according to statistics, its revenue from pulp molding products in 2021 has reached 691 million yuan. The listed company Jialian Technology, which was originally based on plastic tableware, plans to invest about 1 billion yuan to build "an annual output of 100,000 tons of bagasse degradable environmental protection material products project" in Laibin, Guangxi.
Industry insiders said that the industry has a certain scale and strength of high-end
Corrugated Box enterprises are to further expand the scale of production and sales, improve market share as one of the main goals, due to China's paper products packaging industry manufacturers to enter the threshold is low, and the downstream industry is wider, a large number of small
Carton factory dependent on local demand to survive, the industry in the low-end of the small and medium-sized carton factory many, Formed an extremely decentralized industry pattern. At present, the domestic paper products packaging industry above the scale of production enterprises more than 2000, most manufacturers in the industry for small and medium-sized enterprises, although after years of development, the industry has emerged a number of large scale, advanced technology level of production enterprises, but from the overall point of view, the paper products packaging industry concentration is still low, the industry competition is fierce, formed a fully competitive market pattern.
Industry insiders said that in order to cope with the increasingly fierce market competition, advantageous enterprises continue to expand the scale of production or restructure and integrate, and the industry concentration continues to improve.
Actively explore new forms of packaging
Although the demand for paper products packaging industry has been increasing in recent years, industry profits have declined. According to the "2021 National paper and cardboard container industry Operation Overview" released by the China Packaging Federation, in 2021, there are 2,517 enterprises above the scale of China's paper and cardboard container industry, with a cumulative operating income of 319.203 billion yuan, an increase of 13.56%, and a cumulative total profit of 13.229 billion yuan, down 5.33%. According to the financial report, from 2019 to 2021, the net profit of Dasheng Da after deducting non was 82 million yuan, 38 million yuan and 61 million yuan, respectively. It is not difficult to see from the data that net profit has declined. Nanwang Technology prospectus shows that from 2019 to 2021, the gross profit margin of the company's main business showed a downward trend year by year, while the average gross profit margin of 10 comparable companies in the same industry also showed a downward trend.
According to data from the Ministry of Industry and Information Technology, from January to October 2022, the national production of machine-made paper and cardboard was 112,942 million tons, down 1% year-on-year. The operating income of paper and paper products enterprises above designated size was 1,239.7 billion yuan, up 1.1% year-on-year.
Qiu Chenyang said that in 2017, The General Office of the State Council issued the Implementation Plan for prohibiting the entry of foreign garbage to Promote the reform of the solid Waste Import Management System, which made the import quota of waste paper continue to tighten, the raw material waste paper of base paper was restricted, and its price began to rise all the way. Base paper prices continue to rise, the downstream enterprises such as packaging plants, printing plants to form a great cost pressure. In January-February 2021, industrial base paper rapidly increased in price, special paper generally rose by 1,000 yuan/ton, and individual paper types even jumped by 3,000 yuan/ton at one time.
Qiu Chenyang believes that the paper products packaging industry chain as a whole presents the characteristics of the industry "upstream concentration, downstream dispersion". The concentration degree of the upstream paper industry is relatively high, Nine Dragons Paper, Chenming Paper and other large enterprises occupy a large number of market shares, their bargaining power is strong, easy to transfer the price risk of waste paper, coal and other raw materials to the downstream packaging enterprises, and the downstream industry covers a wide range, almost all consumer goods manufacturing industry needs packaging enterprises as a supporting link in the supply chain. In the traditional business model, the paper products packaging industry almost does not depend on a specific downstream industry, so the packaging enterprises in the middle have poor bargaining power in the entire industry chain.
Industry experts said that in the future, China's paper products packaging industry will grow steadily, and the industry enterprises in the face of the current total profit decline, on the one hand, the need to better control the cost of raw material procurement, pay attention to the change of raw material prices and the reasons for the change, strengthen the future market prediction, advance layout, in order to better reduce costs and increase efficiency; On the other hand, enterprises also need to enhance their competitiveness, comply with the trend of market consumption upgrading, continue to improve product quality and service capabilities, develop high-value products, or develop professional packaging services, or extend the industrial chain, and explore new forms of packaging.
