Jilin Chemical Fiber: Alliance Conference Highlights Bamboo Fiber Potential

Main points of investment:

We have participated in the annual conference of bamboo fiber industry.

A few years ago, some stocks were expected to soar! Secret! The market will be reversed soon. The capital flow has changed dramatically! The main funds are plotting new layout.

Comment:

Tianzhu Industrial Alliance

The alliance has a large scale and high specification, and bamboo fiber is highly valued.

The conference attended more than 300 people, the highest of all previous sessions.

In addition to alliance enterprises, the participants include leaders of the textile industry association, chemical fiber Association, the Department of consumer affairs, textile department and other counterparts, and the leaders of nearly ten counties and cities, including Shaoxing county leaders of the national chemical fiber textile head card Qiang county.

At the meeting, all leaders emphasized that bamboo fiber had unique advantages as new fiber, and confirmed the development prospect of bamboo fiber. Among them, Cao director of the textile department of the Ministry of industry and Commerce made clear that bamboo fiber was a kind of biomass fiber, and its development will get policy support in 12th Five-Year.

At the meeting, the Alliance announced that it will establish a bamboo fiber and products exhibition hall in Shaoxing county.

The alliance has strong brand recognition for Tianzhu, and has a high degree of recognition for bamboo fiber.

Through the two day and downstream textile fabric business exchanges, we found that downstream customers have a very high degree of recognition for bamboo fiber, and have strong dependence on Jilin chemical fiber or Hebei J.

At present, the alliance enterprises have a certain scale of sales, and many enterprises have formed a stable industrial chain between them. This year, most enterprises have significantly improved their profits than last year.

In addition, there are quite a few new faces attending the conference this year, and the types of downstream customers have been expanded.

The development of bamboo fiber fabrics is being vigorously promoted.

At the meeting, Zhu Lijuan, a researcher of the national textile product development center, introduced the development of bamboo fiber fabrics in detail.

Led by Jitsu, the joint development center and downstream enterprises jointly developed high-grade blended fabrics with high bamboo fiber content, such as bamboo fiber / cotton, bamboo fiber / wool, bamboo fiber / hemp, bamboo fiber / polyester, bamboo fiber / knitted, pure bamboo fiber and so on.

In addition to the traditional underwear, socks, towels, home textile fabrics and other traditional fields, bamboo fiber has developed into a fabric that can be applied to all kinds of top coat.

The success of downstream fabric development will help to promote the growth of bamboo fiber demand.

Our point of view.

By participating in the conference of Tianzhu alliance, we further confirmed the reasons for our earlier recommendation.

(see the November 25th in-depth report "bamboo fiber breaking into cocoon, Jilin chemical fiber old tree sends new branch") through the investigation of downstream customers, we judge that the turning point of the company has been on schedule, and the performance will continue to rise in the next 2-3 quarters; we maintain the company's earnings forecasts of 0.34 and 0.72 yuan per share in 2011 and 2012, but the sales volume may drop slightly due to the wait-and-see sentiment of the downstream customers in December, and considering that under normal circumstances, some of the annual expenses of the fourth quarter companies will need to be extracted once and for all. We lowered the single quarter earnings per share in 2010 four quarter to 0.06 yuan.

We believe that the bamboo fiber business is facing unprecedented opportunities for development, and the development of the industry is in line with the timing of the company's capacity increase. The double resonance will make the old tree of the company shine with new shoots.

We maintain the "recommended" rating for the company.