Dawn(002838)2025-01-09 03:38Company Overview - Daon Co., Ltd. was established in 2002, specializing in the R&D, production, and sales of high-performance thermoplastic elastomers, modified plastics, color masterbatches, biodegradable materials, and copolyester materials [2][3] - The company has an annual production capacity of 500,000 tons for modified plastics, 90,000 tons for thermoplastic elastomers, 30,000 tons for color masterbatches, and 60,000 tons for copolyester materials [2] R&D and Innovation - In 2006, the company developed the first domestically produced TPV production line, breaking international technology monopolies and receiving the National Science and Technology Award for Technical Invention [3] - The company has established a comprehensive R&D system with four major platforms and a network of research and production bases, focusing on continuous innovation and market-driven R&D [3] Market Trends and Policies - The 2024 national policy on trade-in programs is seen as beneficial for the industry, with further expansions expected in 2025 [4] - The company is positioned to leverage these policies to enhance production and operations [4] Commodity Prices and Supply Chain - Current prices for bulk raw materials are relatively stable, with a slight downward trend, although economic conditions and geopolitical factors may introduce volatility [5] Mergers and Acquisitions - The acquisition of Daon Titanium is progressing, with intermediaries engaged and plans to submit a draft for board and shareholder approval by the end of 2024 [6] International Expansion - The company has established a joint venture in Russia for the R&D, production, and sales of modified plastic products, and is actively seeking opportunities in Southeast Asia and North America [7] Product Growth and Market Potential - Modified plastics account for approximately 70% of the company's revenue, with a production volume of 28.84 million tons in China in 2022, reflecting an 8.8% year-on-year growth [8] - The domestic plastic modification rate has increased from 16.3% in 2011 to nearly 25% in 2023, indicating significant growth potential compared to the global rate of nearly 50% [8] Collaborative Projects - The company has partnered with Haier to establish a joint venture focused on the R&D and production of PCR plastic recycling materials, aiming to become a leading player in the domestic circular materials sector [9] Product Development - The DVA product, used in tire gas barrier layers, is being developed to enhance airtightness and performance while reducing weight and fuel consumption for traditional vehicles and increasing range for new energy vehicles [10]