Electronic detonators broke out against the trend, civil explosive industry ushered in “another spring”, what happened?

2022-06-13 0 By

On January 25, the civil explosion plate bucked the trend, Huhua shares, Poly joint trading limit, Jin Aobo, Guangdong Hongda and other collective higher.It is worth mentioning that Jin Aobo’s shares have risen by more than 90% since their relative low on October 29 last year, while Huhua’s shares have risen by 32% in the last seven trading days.In terms of catalysis, according to the “14th Five-year Development Plan” for Civil Explosive Materials Industry, the production of ordinary industrial detonators will be stopped by June 2022, and the use of digital electronic detonators will be fully promoted.In addition, in December 2018, the Ministry of Public Security and the Ministry of Industry and Information Technology issued the “Notice on the Implementation of the General Principles for Information Management of Industrial Electronic Detonators”, which also required the promotion of the application of electronic detonators to ensure the full use of electronic detonators by 2022.With the previous six, EDR and other latent market “reference”, capital began to explore in advance.The main products of civil explosive industry are industrial explosives, industrial detonators, industrial detonating cables and other varieties, which are widely used in coal, metal, non-metal mining, highway, railway, water conservancy and other infrastructure construction.The mining of coal, metal and non-metal mines accounted for more than 70% of the total sales of civil explosive products.Industrial explosive industry in our country for a long time there is a “small, low, scattered” production situation, the industrial concentration is low, the coal mining industry such as accelerating exit capacity, environmental regulation is more and more strict, against the background of industrial explosive industry has entered the stage demand growth is slowing, the excess capacity to digest and the deepening of the structural adjustment stage “three phase coexist” stage of development.At present, there are regional, structural excess capacity and low utilization rate of industrial detonator capacity in the civil explosive industry, which aggravate the vicious competition in the market and cause the expansion of industry losses.In this context, in recent years, the Ministry of Industry and Information Technology has taken measures such as raising the safety entry threshold, promoting reorganization and integration, and promoting industrial digital electronic detonators to reduce excess capacity.In December 2018, the Ministry of Public Security and the Ministry of Industry and Information Technology issued a “Notice on the Implementation of the General Principles for Information Management of Industrial Electronic Detonators”, requiring the promotion of the application of electronic detonators to ensure the full use of electronic detonators by 2022.In December 2021, the Ministry of Industry and Information Technology issued the “14th Five-year Plan for The Safety Development of Civil Explosive Materials Industry”, which also proposed the comprehensive promotion of industrial digital electronic detonators in 2022.What are the advantages of electronic detonators?The data show that electronic detonators fundamentally solve the safety problems in the process of production, circulation, use and management of detonators, and are widely applicable to blasting projects in various complicated environments.Compared with traditional detonators, electronic detonators have incomparable safety and control functions, with high safety coefficient, convenient management links and low social harm coefficient, which can realize the closed management of explosive products and better adapt to the development trend of the current blasting industry.What about the industry space?In terms of market space, the output of electronic detonators in 2020 was 117 million units, a significant increase from 60 million units in 2019, accounting for 12.24% of the total output of industrial detonators, according to the first Information data.Founder Securities said, with the implementation of the relevant policies, the future digital electronic detonators market space is expected to improve significantly.Everbright Securities estimates that the annual consumption of traditional detonators in the market is about 1-1.2 billion. Assuming 100% penetration of electronic detonators in the future, according to the average price of 15 yuan, the market space of electronic detonators will reach 15-18 billion yuan.Related companies, on the one hand, according to poly United and other industry leaders on the interactive platform, civil explosive company is replacing ordinary detonators with electronic detonators.On the other hand, Everbright Securities said that under the background of electronic detonators entering the stage of full use, the intelligent network delay management unit, as an indispensable part of electronic detonators, will benefit from the double benefits brought by the replacement of stock market and the development of electronic detonators.The intelligent networking delay management chip developed by Powerchip is mainly used in digital electronic detonators and other fields.In terms of production capacity, according to the company’s official website and interactive platform, yahua Group, Poly United, Huhua Stock, Kailong Stock, Guangdong Hongda, Cathay Group, Jin Aobo and other production capacity/planned production data ranked first.* Disclaimer: The content of this article is for reference only, does not constitute investment advice * Risk tip: the stock market is risky, the market should be cautious