Shanghai Baolijia Chemical (SZ:301037)2022-11-21 15:38Group 1: Company Overview - Shanghai Baolijia Chemical Co., Ltd. was established in 2001, primarily engaged in the R&D, production, and sales of water-based acrylic emulsions, with applications in construction, waterproofing, textiles, and packaging [2]. - The company has established four production bases in Shanghai, Foshan, Yantai, and Deyang, with plans for a fifth base in Mingguang, Anhui, to enhance national capacity coverage [2]. - The company achieved a market share of 11.11% in 2019, with nearly 20% in the construction segment [3]. Group 2: Production and Operational Impact - In September 2021, only the wholly-owned subsidiary in Foshan was affected by power restrictions, but production was not halted, and operations have since returned to normal [3]. - The company maintains a competitive edge in production costs due to large-scale procurement and strategic purchasing methods, resulting in lower raw material prices compared to market quotes [4]. Group 3: Competitive Advantages - The company has a production capacity of 376,800 tons as of 2020, which creates a significant barrier to entry for competitors due to high investment and long construction periods for production facilities [4]. - The company has a dedicated R&D team of over 60 members, ensuring the ability to meet evolving customer demands and maintain technological competitiveness [5]. Group 4: Industry Trends and Market Position - The acrylic emulsion industry is experiencing consolidation due to stricter environmental regulations, which pressure smaller companies, while larger firms with robust R&D capabilities are favored by downstream clients [5]. - Major players in the domestic market include Baolijia and Badfu, with foreign companies like Dow Chemical and BASF holding smaller market shares, posing limited competitive pressure in the short term [5].