Huafon Spandex(SZ:002064)2022-12-03 10:54Group 1: Company Overview and Financial Performance - Zhejiang Huafeng Spandex Co., Ltd. is involved in the acquisition of a target company with net assets lower than its own, attributed to industry characteristics [1] - The target company's revenue and net profit indicators for 2018 are significantly higher than those of the listed company, which will help improve profitability and expand market influence [1] - Huafeng New Materials has an audited net profit of CNY 1.49 billion for 2018 [3] Group 2: Business Integration and Market Position - The acquisition will broaden the listed company's business scope and integrate the polyurethane industry chain, enhancing risk resistance and sustainable development capabilities [2] - Huafeng New Materials has a production capacity of 420,000 tons of polyurethane raw liquid, 480,000 tons of adipic acid, and 420,000 tons of polyester polyol annually [2] - The market share of Huafeng New Materials in polyurethane raw liquid for shoe soles is 63%, with the market expected to reach USD 5.79 billion by 2023, growing at a CAGR of 4.9% [4] Group 3: Production and Operational Efficiency - Huafeng New Materials operates at full capacity for adipic acid, benefiting from stable demand and cost advantages [3] - The company emphasizes environmental protection and has not faced adverse effects from environmental policies in 2018 [3] - New production capacity of 60,000 tons is expected to be operational this year [5] Group 4: Market Trends and Future Outlook - The spandex industry is undergoing consolidation, with a total domestic demand of less than 700,000 tons, indicating potential for growth [5] - The company plans to expand production capacity in response to market demand, particularly in polyurethane products [4] - The integration of high-quality polyurethane assets is a strategic move to enhance international competitiveness and reduce risks [6]