DAOMING(SZ:002632)2022-12-05 02:14Market Overview - The company holds a market share of approximately 30% in the reflective materials sector, with a combined domestic market share of about 70-80% alongside a major competitor [1][2]. - The total market capacity for license plates in China is estimated at around 7.5-8 billion RMB, with a demand for approximately 40 million new and replacement license plates annually [2]. - The global aluminum-plastic film market is dominated by a few companies, with DNP and Showa Denko holding about 70% of the market share [2]. Product Insights - The company’s reflective materials are primarily used in license plates, with traditional ink technology being phased out in favor of new thermal transfer technology, which is more efficient and environmentally friendly [2]. - The aluminum-plastic film is a key material for soft-pack lithium batteries, with a market space that is largely untapped domestically, as the technology is still dominated by foreign companies [3]. - The PC/PMMA composite materials are expected to replace metal back covers in mid-range smartphones, with a projected market exceeding 150 billion RMB based on 2019 smartphone shipment data [4]. Financial Performance - In 2018, the sales of aluminum-plastic films exceeded 42 million RMB, with a significant increase in average selling price and gross margin in 2019 [3]. - The company is expected to achieve scale production of PC/PMMA materials in the second half of 2019, contributing positively to financial performance [4]. - Despite a decline in sales for the optical film segment due to market pressures, the company is actively adjusting its sales strategy to recover profitability [5]. Future Prospects - The company aims to capture remaining market share and surpass competitors, particularly in the context of new policies supporting the production of reflective materials [2]. - The demand for micro-prism reflective materials is anticipated to grow significantly due to increased infrastructure investments, with a global market size of around 7 billion RMB [4]. - The company is positioned to benefit from the trend towards domestic production of aluminum-plastic films, as the demand for local suppliers increases [3].