Nature Wood Group Limited (Stock Code:NASDAQ:NWGL) on2023year9month12Daily successful login to NASDAQ in the United States. The company is a vertically integrated forestry company, focusing on the timber industry.FSCThe company's certified forest management operations and timber and wood products industry cover upstream forest management and logging, as well as downstream timber processing and distribution. It offers a wide range of products including logs, outdoor boards, flooring materials, sawn timber, raw charcoal, synthetic charcoal, machine-made charcoal, and essential oils. The business is mainly sold through sales networks in Europe, South Asia, South America, North America, and China. The company is a leading exporter of timber products in Peru. Frost & SullivanFrost & Sullivan,Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') isNature Wood Group LimitedThe listing provides exclusive industry advisory services, and we would like to extend our warmest congratulations on its successful listing.
Nature Wood Group Limited (hereinafter referred to as ' Nature Wood "") Yu2023year9month12The company successfully went public todayIPO listing, Nature Wood Total Issuance750,000US Depositary Receipt("ADS")per shareADSThe issue price is9.00US dollars, fundraising scale is675US$10,000,000 (excluding subscriptions underwriters may exercise the additional allocation right).
During the process of listing in the US, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the writing of relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important chapters), and assisting the issuer in completingSECCommunication with investors, helping them quickly understand the market ecosystem and competitive landscape, assisting issuers in completingSECFeedback on various industry-related issues, etc.
Investment highlights
The company is a leading vertically integrated forestry enterprise;
The company focuses on economicsFSCCertified forest management operations;
The company attaches great importance to environmental protection and sustainability. Through sustainable forest management and environmental protection measures, it produces high-quality timber products;
The company has a management team that shares a common mission and is highly visionary.
According to a report by Frost & Sullivan, by2021Year-on-year export value,
The company is Peru's second-largest exporter of timber products;
The company is a limited liability company.FSCThe second-largest timber product exporter in terms of certification;
The company is Peru's largest outdoor board supplier;
press2021export volume in [year],
The company is the largest oak exporter in France and the second-largest exporter of hardwoods in France.
Global Forestry Market Overview
The main types of forestry and logging markets include logging, timber operations, forest nurseries, and forest product harvesting. Logging refers to the process of cutting down trees, sawing them into appropriate lengths, and transporting them to sawmills. Various applications include construction, industrial products, and other uses.2016Year-end2020In the year, global total log production increased slightly, with an average annual compound growth rate of0.4%.2016Annual log output38.505100 million cubic meters2020Annual achievement39.120100 billion cubic meters. With the continuous growth of global production, it is expected that by2026In [year], global log production will reach41.881100 million cubic meters2020 - 2026The annual average compound growth rate for the year is1.4%.
Source: Frost & Sullivan report
With the popularization of high-quality custom furniture, large-scale home customization services have been continuously expanding in the global manufacturing industry over recent decades, becoming a new production model. It is expected that the demand for high-end custom furniture will grow significantly in the next five years. The market has tremendous consumer potential, and the industry's revenue share will rise with the expansion rate and strong growth prospects. At the same time, due to historical and cultural reasons, some countries have a high demand for wood. Some countries have special preferences for wood products due to long-term cultural factors and traditions. The main reason is that these regions have been rich in timber since ancient times, making people use wood more frequently. Secondly, various factors such as religion, culture, and history lead to a strong demand for high-value timber among the people of these regions.
In the future, the global forestry market will pay more attention to environmental protection. Currently, some countries are planning to plant new trees in areas with severe deforestation. More countries are striving to control the logging process to make it more sustainable. Therefore, to protect the environment, experts must determine the number of trees and which areas timber companies can log from, while reducing or avoiding impacts on the environment. Another major trend is the increased use of digital technology. With the integration of advanced systems such as global positioning systems and markers used in forests, loggers can observe relevant areas and assess which trees can be easily cut down. In addition, it has brought many benefits to the logging industry. For example, buyers can use mobile applications to determine the size, age, and type of trees required for resources. This will make the entire process more efficient. Moreover, as part of sustainable development efforts, it helps to count the number of harvested trees and newly planted trees more accurately.
Global Forestry Processing and By-products Market Overview
In terms of global logs imports,2016Year-end2020The import data for the year showed a fluctuating trend.2016In the year, the total global imports were1.401100 million cubic meters;2020In the year, the total global imports were1.404100 million cubic meters. Forecasted to2026In [year], imports will reach1.839100 million cubic meters2020 - 2026The annual compound growth rate for4.6%.
Source: Frost & Sullivan report
In the future, low-carbon living is receiving increasing attention, and the state is also strongly advocating for it. Expensive tree species are on the brink of extinction, unable to meet market demand. Building material enterprises must innovate and develop to make more efficient use of timber resources. The birth of wood-based panels marks the beginning of a modern era in the processing of timber materials. Developing the wood-based panel industry is conducive to alleviating the supply and demand contradiction of timber materials and is an important way to save timber resources. In addition, the development of the wood-based panel industry can also increase the overall revenue of timber materials. Nowadays, there are more and more new varieties of wood-based panels. With the improvement of people's living standards, the role of wood-based panels in social development will become increasingly significant. At the same time, effectively and reasonably utilizing waste wood is an important means of protecting forest resources. Waste wood can be processed into multifunctional composite wood after a series of treatments, making full use of waste wood. For example, sawdust is a very common raw material that can play an important role in industries such as papermaking, power generation, heating by combustion, fertilizer manufacturing, and wood-based panel manufacturing. Some enterprises choose to purchase wood crushers to make their own sawdust, while others directly buy wood chips. With the development of industry, the demand for sawdust is also rising year by year.
"Forestry carbon sink" refers to the process, activity, or mechanism that involves absorbing and fixing carbon dioxide in the atmosphere through measures such as afforestation and reforestation, strengthening forest management, reducing deforestation, protecting, and restoring forest vegetation, utilizing the carbon storage function of forests, and combining it with carbon sink trading in accordance with relevant rules. The EU carbon price has been from2017It started to grow rapidly at the beginning of2022Annual achievement87.3US dollar/tons2017 - 2022The annual compound growth rate for69.0%.2021The year-on-year growth rate was the highest, at about116.0%With the development of carbon trading markets and the addition of more participants, it is expected that future carbon prices will rise, with an annual compound growth rate of1.2%Conservative estimate2026Will reach in251.2US dollar/tons. Compared with the EU carbon price, the rise in US carbon prices has been slower. The annual compound growth rate is14.7%, from2017year14.3US dollar/tons up to2022year28.5US dollar/tons. It is expected that by2026In [year], carbon prices in the United States will rise to74.9US dollar/tons, with an annual compound growth rate of about27.4%.
Source: Frost & Sullivan report
Industry-driven, firstly, the advent of the industrial era has brought about rapid economic development, but it has also led to a significant increase in carbon emissions, exacerbating environmental pollution. To reduce carbon content in the air, it is necessary to reduce carbon emissions at the source, such as by implementing measures to decrease the carbon stock in the atmosphere. Forest carbon sinks are an important measure for improving regional environmental pollution and protecting the environment. Secondly, both national-level organizations and local governments are vigorously promoting forestry carbon sink initiatives. On one hand, this can drive economic development, and on the other hand, it can effectively manage carbon emissions at the fundamental level. Moreover, countries with insufficient carbon emissions need to purchase corresponding carbon emission allowances, while countries with excessive carbon emissions also require more funds to develop other domestic businesses.
Overview of the Global Timber Trade Market
China's wood processing industry mainly relies on imports for raw materials. China94%The timber imports were still logs, sawn timber or wood chips. In the past decade, wood chip imports have grown the fastest, followed by sawn timber and logs;2011Year-end2020In [year], the total imports of these three products increased57%.
China's log imports have been growing steadily, with an even stronger demand for softwood varieties during this decade. China's imports of hardwood logs have increased.17%The main sources of imported Chinese hardwood logs remain stable, starting with Papua New GuineaPNG) and the Solomon Islands, followed by Russia, whose market share doubled in a decade. Brazil saw the largest increase in market share, followed by the United States, the European Union, and the European Free Trade Association (EFTAThe market share of member states has also increased.
In contrast, China's imports of cork logs have grown more robustly49%), especially since2018Since [start year]. Compared with sawn timber, wood chips, and softwood logs, the import of hardwood logs has grown relatively slowly. This may be due to an increasing number of countries introducing or implementing log export restrictions to promote domestic value-added processing.
In terms of China's log imports,2016Year to2020The import data for the year showed a stable trend.2016In the year, China's total imports were5,12010,000 cubic meters;2020In the year, China's total imports were5,96010,000 cubic meters. Estimated by2026In [year], imports will reach7,65010,000 cubic meters2020 - 2026The annual average compound growth rate for the year is4.3%.
Source: Frost & Sullivan report
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Frost & Sullivan has extensive research experience in the materials industry and has assisted well-known enterprises in successfully listing on the capital market. Successful listings include: Global New Materials （6616.HK), Xingyu Holdings2346.HK), Xinghe Holdings1891.HK), Shandong Gold (1787.HK), Xingye New Materials8073.HK), Zhongqi Group1932.HK), Meigu Technology8349.HK), Huajin International2738.HK), Filtre glass6865.HK), Caike Chemical1986.HK).
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Frost & Sullivan assisted Xingyu Holdings in successfully going public in Hong Kong(2346.HK)
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Frost & Sullivan assisted Caike Chemical in successfully going public in Hong Kong(1986.HK)
*The above order is not sequential and is arranged in reverse chronological order by listing time.
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