Kanhoo(SZ:300340)2022-12-08 03:18Group 1: Company Overview - The overall market demand for luminescent materials is declining, influenced by export factors and a drop in rare earth material prices, leading to a decrease in product prices and revenue [2] - Despite the overall market decline, the company has maintained stable production and sales volumes over the past two years, resulting in an increase in market share [2] - The company plans to focus on the development of LED and other specialty luminescent materials in the long term [2] Group 2: Profitability and Market Competition - The gross profit margin is generally low due to price declines in luminescent materials and intense competition in lithium battery materials, leading to unstable profitability [3] - The LED display business is currently underperforming, with the company failing to meet performance targets in the past two years due to fierce market competition [3] Group 3: Export and Market Dynamics - Export activities are limited, as most luminescent material products require quotas, which are primarily handled by quota-holding enterprises; major customers for luminescent and lithium battery materials are mainly domestic [3] - The company’s catalytic materials have met standards and gained some customer recognition, but full-scale trial use remains uncertain due to industry characteristics and market entry challenges [3] Group 4: Future Outlook on Rare Earth Demand - The overall demand for rare earth materials is complex, with significant variations across industries such as magnetic materials, luminescent materials, polishing materials, and catalytic materials; no substantial market demand growth is currently observed [3] - Price trends for rare earth materials are influenced by demand and the degree of industry consolidation, as well as efforts to combat illegal mining [3]