According to the classification of Guoxin chemical, the silicone industry where adhesives are located has a revenue growth rate of + 12% in 2020h1 (ranking fifth), and the net profit growth rate of parent company is 40% (ranking fourth), second only to plastics, electronic chemicals and potash fertilizer industry. The overall average revenue of the top five adhesive enterprises in 2020h1 industry was 18.3% year-on-year, the net profit attributable to the parent company was 39.5% year-on-year, the average gross profit rate was 35.64% (+ 1.06pct), and the net profit rate was 15.33% (+ 3.06pct). Among them, the main business of Hunan Ba brother new material adhesive is the most concentrated, the downstream application fields and leading customers of Deyi adhesive are one of the most extensive, and the ability to resist cycle and growth is also one of the strongest.



In the first half of the year, the demand of construction and new energy in the downstream of adhesives grew fastest, and the packaging and transportation industry was most seriously affected by the epidemic.

The epidemic situation accelerated the optimization of industry structure, and the industry as a whole basically faced the good trend

At present, the adhesive industry is in the stage of high gross profit rate stabilization. In addition, adhesive companies generally optimized the product structure and cost control, which showed that the profitability of Q2 industry reached a record high.

We judge that the industry is basically facing a good trend, and the trend remains unchanged

1) The policy side is favorable, and the new adhesive is an encouraging industry;

2) The demand side recovers, the domestic substitution of high-end products accelerates, and the demand is counter cyclical;

3) The pressure on the cost side decreases and the low oil price tends to stabilize; Chemical products production expansion cycle, low cost history;

4) Product structure is optimized, high-end products are increased, and the gross profit margin of the industry has 10% room to improve;

5) With the improvement of industry concentration, the leading adhesive enterprises are expanding their scale and the market share is increasing.

The demand side has four major points to pay attention to in the future

Domestic adhesive construction and packaging still occupy the main market. Although the share of adhesives used in new energy fields such as solar panels and lithium batteries and electronic consumer industries such as digital products is small, the demand growth is fast. We believe that in the second half of the year and even next year, the industry's demand side will focus on the following aspects:

1) Infrastructure, real estate and automobile industries recovered;

2) Prefabricated building develops rapidly;

3) The new energy photovoltaic and wind power parity online quota exceeded expectations;

4) 5g consumer electronics and other high-end glue demand continues to release