Dawn(002838)2025-01-18 00:18Company Overview - Daon Co., Ltd. was established in 2002, specializing in high-performance thermoplastic elastomers, modified plastics, color masterbatches, biodegradable materials, and copolyester materials [3] - The company has an annual production capacity of 500,000 tons for modified plastics, 90,000 tons for thermoplastic elastomers, 30,000 tons for color masterbatches, and 60,000 tons for copolyester materials [3] - Daon has developed the first domestically produced TPV production line with independent intellectual property rights, breaking international monopolies in the TPV industry [3] Sales and Clientele - Haier is the largest customer, accounting for 31.81% of sales in 2023 [5] - Other major downstream appliance clients include Hisense, Joyoung, Xiaomi, Liren, Midea, and Meiling [5] Future Strategies - The company plans to enhance R&D investments in modified plastics, thermoplastic elastomers, color masterbatches, biodegradable materials, and copolyester materials [4] - Daon aims to integrate subsidiaries for improved resource utilization and expand its business scale through both organic growth and acquisitions [4] Market Impact - The 2024 national policy on trade-in programs is expected to positively impact the industry, with further policy expansions anticipated in January 2025 [6] - HNBR products have broad application prospects in aerospace, oil exploration, automotive, and new energy sectors, facilitating import substitution [7] Mergers and Acquisitions - The acquisition of Daon Titanium Industry is aimed at leveraging synergies in the chemical new materials sector, enhancing product and technology collaboration [9] - Daon Titanium's financials as of September 30, 2024, include total assets of 1.127 billion CNY and a net profit of 100 million CNY for the first three quarters [10] Revenue Sources - Modified plastics contribute approximately 70% to the company's revenue, primarily used in automotive and home appliance sectors [11] - High-margin products like TPV, HNBR, and copolyester are expected to drive future growth through import substitution [11]