[ZX Light Industry/New Materials] Xianhe Co., Ltd. Viewpoint Update

English summary

In the main business, the company's scale and products rank among the top three globally. Benefiting from weakened European competitors due to resource and war impacts, direct/indirect exports are strong, and domestic market share continues to rise. Next year, the Cambodia plant will be put into operation, making the company the first Chinese specialty paper enterprise to deploy overseas capacity, accelerating international expansion. The company's capacitor paper downstream customer certification progress exceeds expectations. The current customer verification cycle has significantly shortened, requiring only 2000+ hours; some Japanese customers are expected to confirm factory inspection time before the end of August. More than ten products have been tested, with batch sampling concentrated in Q4. Current high-voltage products are priced around 80,000 yuan per ton, while low-voltage products have higher unit prices, with very considerable profit margins. From a supply-demand perspective for capacitor paper, a first-tier capacitor factory currently has demand of 150 tons but NKK can only meet 100 tons. By June next year, demand is expected to reach 300 tons. Second-tier manufacturers are also accelerating testing. The performance of the company's high-voltage products is not far behind NKK, and with the current verification progress, a breakthrough is expected within the year. In addition, the company is expected to continue upstream layout in high-quality raw materials such as pine pulp and hemp pulp, further increasing self-sufficiency and enhancing profits. ...