上市捷报丨沙利文祝贺南京肯特复合材料股份有限公司成功登陆深交所创业板（301591.SZ）

Nanjing Kent Composite Materials Co., Ltd. (Stock Code:301591.SZ) on2024year2month28The company successfully listed on the Growth Enterprise Market of the Shenzhen Stock Exchange. It is committed to the research, development, production, and sales of high-performance engineering plastic products and accessories. Its end products are now widely used in general machinery manufacturing such as valves and compressors, communication equipment manufacturing, high-speed rail and rail transit equipment manufacturing, and other fields. The sales market covers countries and regions including China, Japan and South Korea, Southeast Asia, the United States, and the European Union. The company holds honorary titles such as high-tech enterprise, one of the fourth batch of national-level specialized, refined, characteristic, and innovative 'little giant' enterprises, a specialized, refined, characteristic, and innovative 'little giant' enterprise in Jiangsu Province, and an outstanding scientific and technological innovation enterprise in China's plastic processing industry. Frost & SullivanFrost & SullivanFrost & Sullivan, hereinafter referred to as 'Frost & Sullivan', hereby warmly congratulates the company on its successful listing.

Nanjing Kent Composite Materials Co., Ltd. (hereinafter referred to as 'Kent Composite') was established on2024year02month28Daily login to the ChiNext, this public offering of shares2,10310,000 shares, including new share offerings2,10310,000 shares, issue price19.43yuan/Equity, new share capital raising4.09100 million yuan, total share capital after issuance8,41210,000 shares.

Investment highlights

The company is one of the early entrants into the high-performance engineering plastic products industry in China.

The company has independently developedPTFEwear resistance and pressure resistance,PEEKHundreds of material formulas such as anti-friction materials are available, including seals and assemblies6major categories,3More than 10,000 products of different specifications;

Centering around the national new material strategic plan, and leveraging its years of production and technological R&D strengths, the company has developed its own core technologies and key processes in aspects such as raw material form modification, material reforming, and forming, enabling the company's products to maintain an advantageous position in performance;

The company owns the Jiangsu Provincial Enterprise Technology Center, the Jiangsu Provincial Engineering Technology Research Center for Special Thermoplastic Composites, the Jiangsu Provincial Graduate Student Workstation for Enterprises, the Nanjing Municipal Enterprise Academician Workstation, and the Jiangsu Provincial Foreign Experts Studio. It has also received honorary titles such as High-tech Enterprise, Jiangsu Province 'Specialized, Refined, Specialized and Innovative Little Giant' Enterprise, Jiangsu Province Science and Technology-based Small and Medium-sized Enterprises, Jiangsu Province Demonstration Enterprise for the Construction of Innovation Capability of Small and Medium-sized Enterprises, and China's Excellent Science and Technology Innovation Enterprise in the Plastics Processing Industry. As of the date of signing the prospectus, the company owns89item patent, wherein33The item is an invention patent;

The company has been operating in the high-performance engineering plastic products industry for many years. Currently, its sales market covers Mainland China, Taiwan of China, Japan and South Korea, Southeast Asia, the United States, and the European Union, among other countries and regions. The company has established direct and stable cooperative relationships with customers in various industrial fields, includingCommScope,bray,emerson,Rego,SchlumbergerLeading high-end equipment manufacturing enterprises globally and domestically, including China Academy of Railway Sciences, CRRC Corporation Limited, New World Steel Co., Ltd., Aerospace Morning Light, BYD, etc.

Frost & Sullivan has long been focusing on the global and Chinese chemical and materials industries, releasing a large number of research reports that are widely cited in the prospectuses of leading listed companies in the industry, helping clients accelerate growth.

Overview of the Plastics Market

Plastic products refer to a general term for daily necessities and industrial supplies processed mainly from plastic materials, including all products made using plastic as the raw material through injection molding, blow molding, and other processes. Plastic products can typically be divided into plastic parts, plastic sheets, pipes, profiles, plastic films, daily-use plastic products, plastic ropes, woven items, plastic packaging boxes and containers, plastic artificial leather, synthetic leather, and foam plastic products.

Classification of plastic products

Source: Frost & Sullivan report

Analysis of the Plastic Parts Industry Chain

The plastic parts industry chain is a vast and complex network that connects raw material suppliers, manufacturers, and end-users.

In the upstream of the industrial chain, what we mainly observe is the supply of raw materials. The raw materials involved here include general engineering plastics and special engineering plastics, which are the foundation for manufacturing plastic parts. General engineering plastics such as polyethylene (PE), polypropylenePP), polyvinyl chloridePVC) and polyethylene terephthalatePETSpecial engineering plastics are favored for their low production costs, ease of processing, and wide application due to their excellent properties such as high temperature resistance and chemical corrosion resistance. In addition, plastic additives and metal materials are also important raw materials that can improve the processing performance of plastics and enhance the physical properties of finished products. Moreover, production equipment suppliers, including those for processing machinery and molds, provide necessary hardware support for the manufacturing of plastic parts. The quality of these equipment and tools directly affects the production efficiency and product quality of plastic parts.

The midstream mainly consists of various plastic parts manufacturing enterprises, which are a crucial link connecting upstream raw material supply and downstream demand. These enterprises utilize the raw materials and production equipment supplied from upstream to produce various plastic parts through a variety of processing technologies such as injection molding, extrusion, and blow molding. These parts are widely used in different industries and products, such as home appliances, automobiles, medical equipment, etc. Midstream enterprises not only need to focus on production efficiency and cost control but also continuously innovate to develop more high-quality and high-performance new products to meet market demand.

The downstream demand side is the end-users of the plastic parts industry chain, covering multiple fields such as automotive manufacturing, railway transportation equipment manufacturing, communication equipment manufacturing, general machinery and instrumentation manufacturing, etc. These fields have a huge demand for plastic parts and have strict requirements for product performance, quality, reliability, and cost. With the development of technology and market changes, the demand from downstream users for plastic parts is constantly upgrading, prompting continuous innovation and progress in the entire industry chain.

Analysis of the Plastic Parts Industry Chain

Source: Frost & Sullivan report

Analysis of the Plastic Parts Industry Chain

During the 12th Five-Year Plan and 13th Five-Year Plan periods, the main business revenue of the plastic products industry steadily increased with production volume. Fluctuations in crude oil prices and changes in downstream consumer demand have had a certain impact on the growth of the main business revenue of plastic products. As of2019At the end of the year, the main business revenue of China's plastic products industry reached26,492.1yuan,2011Year-end2019During the year, the average annual compound growth rate was6.9%.2020In [year], the impact of the COVID-19 pandemic on the consumer sector, as well as fluctuations in upstream crude oil prices that extended to the plastics industry chain, are expected to have a negative impact on the growth of main business revenue in the plastics industry in the short term.

In the long run, the main business revenue of the plastic products industry is expected to continue growing with the expansion of downstream consumer demand and the technological upgrading of the entire industry. According to forecasts2019Year-end2024The annual compound average growth rate for the period is1.8%The main business revenue of the plastic products industry will be2024Reach by the end of the year28,993.1100 million yuan.

Source: Frost & Sullivan report

Drivers of the plastic products market

· Economic growth and consumption upgrading

The continuous growth of the Chinese economy has provided a broad market space for the plastic products industry. With the improvement of people's living standards, consumers' demand for plastic products tends to be diversified and high-quality. In fields such as daily necessities, packaging materials, auto parts, and electronic products, plastic products have become indispensable materials due to their lightweight, durable, and cost-effective characteristics. This consumption upgrade has driven innovation and development in the plastic products industry, prompting enterprises to invest more resources in researching and developing new materials, technologies, and products to meet market demands.

· Policy Support and Environmental Protection Requirements

The Chinese government's support policies for the plastic products industry and increasingly stringent environmental protection requirements are also important factors driving the industry's development. To promote green and sustainable development, the government has introduced a series of policies encouraging the use of biodegradable plastics, recycled plastics, and other environmentally friendly materials and technologies. These policies not only guide the industry's development direction but also promote technological innovation and market expansion in the field of environmentally friendly plastics by enterprises. At the same time, policies restricting traditional plastics and promoting recycling also prompt the industry to optimize production processes and improve material utilization rates.

· Complete plastic product industry chain

China has a complete and mature plastic products industry chain, covering raw material supply, processing equipment, production technology, and end application fields, forming a closed-loop industrial system. This complete industrial chain not only provides various raw materials such as various engineering plastics and special plastics but also includes advanced production and processing technology, efficient logistics distribution systems, and extensive sales networks. The integrity of this industrial chain provides strong support for the rapid development of plastic products, enabling China to maintain competitive advantages in the global plastic products market.

· Globalized markets and trade

The development of China's plastic products industry is also affected by the global market and trade. As one of the world's largest producers and exporters of plastic products, China holds an important position in the international market for plastic products. The integration of the global supply chain enables Chinese plastic product enterprises to serve not only the domestic market but also expand into overseas markets, participating in the global value chain. With the process of economic globalization, China's international competitiveness in plastic products continues to improve, and changes in external market demand will also have an important impact on the development of the domestic industry.

Development trend of plastic products market

· Replace steel with plastic, replace wood with plastic

The improvement in the performance of plastic products has continuously expanded their application scenarios, becoming one of the main trends for future development in fields such as 'replacing steel with plastic, replacing wood with plastic'. The application of plastics in the upgrade and transformation of automotive lightweighting is one representative example. There is a significant market demand for plastics in the automotive industry. In the future, the development goal for the use of automotive plastics in China is150kilograms, with developed countries having a value of approximately230 - 250Kilograms. With the gradual migration of the global automotive manufacturing industry chain to China and the rise of local Chinese automakers, the application of plastics in the automotive industry will bring development opportunities to China. The scope of plastic applications in automobiles is expanding from interior parts to exterior parts, bodywork, and structural components. The development and application of high-performance resin materials and reinforced plastic composites will become important technical development directions for the future plastics products industry.

· Medical scenario applications

Medical plastic products still have a large market space in China. In terms of application prospects, the penetration rate of medical plastics in China's medical device industry is about15%, while the penetration rate in developed countries is53%The market for medical plastic products in China still has significant development potential. In terms of product structure, plastic products are mainly used in medical scenarios for medical devices, artificial organs, and medical packaging.3In one aspect, currently, the manufacturing of medical plastic products in China is mainly concentrated in areas with technical barriers and lower profit margins, such as medical packaging and medical devices. Artificial organs, which have a higher value, are monopolized by developed countries due to their high technical threshold. The research and development of artificial organs and their production involve multiple disciplines such as materials science, medicine, biology, and engineering, posing high technical barriers and rich practical experience. With China's development in related fields and increasing consumer demand, the development of the medical plastic products sector will provide new growth points for the development of China's plastic products industry.

· Environmentally friendly products are widely used

Environmentally friendly plastic products will gradually be implemented in multiple scenarios. Disposable plastic products and plastic agricultural films have already been widely used in various fields. However, the difficulty in handling and recycling waste plastics is one of the important factors restricting the use of plastic products. With China's continuous improvement of environmental requirements, environmentally friendly plastic products(Degradable plastic products)The research, development, and application of these materials will continue to develop further. Currently, degradable plastics have certain disadvantages in terms of price and usage cost, resulting in a low market penetration rate. In the future, changes in consumer concepts and the gradual introduction of relevant policies will drive the technological development and practical application of environmentally friendly plastic products.

View the prospectus

Frost & Sullivan has extensive research experience in the chemical and materials industries, assisting well-known companies in successfully accessing the capital market. Successful listings include: Jihai Resources (2489.HK), Zhongbao New Materials2439.HK), Shengneng Group2459.HK), Jinli Yongci (6680.HK),Avia Avian（IDX: AVIA), Global New Materials6616.HK), Dafeng Equipment2153.HK), Yihai International8659.HK),GHW（9933.HK), Sanhe Refining0301.HK), Xingyu Holdings2346.HK), Xinghe Holdings1891.HK), Xuyang Group1907.HK), Dragon Resources1712.HK), Shandong Gold (1787.HK), Henan Jinma6885.HK), Xingye New Materials8073.HK), Dongguang Chemical Industry1702.HK), Zhongqi Group1932.HK), Xinbang Holdings1571.HK), Meigu Technology8349.HK), Huajin International2738.HK), Filtre glass6865.HK), Dinos (1452.HK), Caike Chemical1986.HK), Chang'an Renheng8139.HK), Sansida1337.TWSE), Borun IndustryBORN.NYSE), Kangpeng ChemistryCPC.NYSE), Gushan GroupGU.NYSE), Tianhe Chemical Industry1619.HK), Yihua Holdings2121.HK), Sijia Group1863.HK) etc.