The hottest Cairn shares are involved in the field

2022-07-24
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Cairn's involvement in Buffett's preferred field

the special paper industry has rebounded significantly, and the automotive power battery has become a new profit growth point

because it is located in Suichang County, Zhejiang Province, Cairn's shares (002012) seem a little quiet. In addition, Cairn's first loss in 2007, Cairn's shares are more and more low-key in self reflection and reform, and have no time to enter the public's field of vision; But this year Kane has become unusual

this year's situation is much better than we expected. Since March, the company's sales target for the whole year has been continuously improved. Sitting in the office, Tian Zhiqiang, the director of Cairn, talked about the company's operating conditions and was very happy

the reason why Zhejiang Stock Co., Ltd. reported Kane shares this week is because it sees that the profits of its main papermaking industry are increasing; At the same time, the power battery industry that Cairn is involved in also brings investors unlimited reverie

the gross profit margin of the main business of special papermaking increased significantly

Cairn shares disclosed in this year's interim report that its operating income was RMB 243million, compared with RMB 183million in the same period of last year, an increase of 32% year-on-year; The net profit was 17.44 million yuan, a year-on-year decrease of 2.59%; But what is more worth looking forward to is that the announcement also predicts that the net profit in the first three quarters of this year will increase by about 30% ~ 50% over the same period of last year

however, when the economic situation was good in 2007, Cairn shares unexpectedly suffered a loss. In that year, its total profit was 1.4932 million yuan, a decrease of 116.75% over the same period of the previous year. The annual report mentioned that it was mainly due to the decline in sales prices and the rise in the prices of raw materials

why did Kane, who fell into a loss in 2007, turn losses into profits so quickly under the impact of the financial crisis

since the performance declined as early as 2007, we had been trying to change before. Therefore, although the financial crisis came suddenly, we were better prepared than other enterprises. Tianzhiqiang explained his doubts about

in addition to being alert to the decline in performance in advance, the correct decision made by Ji Hao, general manager of Cairn at the end of last year also laid the foundation for Cairn's substantial increase in profits this year

it turned out that the impact of the financial crisis was particularly strong in the second half of last year. Since July last year, the monthly sales volume of electrolytic capacitor paper has increased from more than 480 tons to more than 200 tons, and then to more than 100 tons. The speed of decline has almost blinded the management who have been engaged in the paper industry for many years. In December, the price of pulp, the main raw material, continued to decline. At that time, many paper mills were even more afraid to hoard raw materials in panic; But with more than ten years of management experience in the paper industry, Ji Hao made a bold decision: copying raw materials. Its 2008 annual report showed that Cairn stock had accumulated 26000 tons of pulp

since the beginning of this year, the pulp price has rebounded after a continuous decline, with a cumulative increase of more than 60%. The successful forecast not only made Cairn shares not affected by the rise in raw material prices, but also increased its gross profit margin. The interim report shows that its comprehensive gross profit margin increased by 7.8% year-on-year

however, tianzhiqiang explained that in addition to the advantages of raw material prices, the increase in gross profit margin is also related to the company's measures to improve internal management efficiency and cost control

the market for electrolytic capacitor paper is actually very small. The global annual demand is about 10000 ~ 20000 tons, and Cairn's annual output is about 5000 tons. According to tianzhiqiang, Cairn is the only company in China that can produce electrolytic capacitor paper in a series. Therefore, once the market recovers, it is understandable that its market sales will recover rapidly, and the papermaking business will maintain stable growth in the second half of the year

transformation of NiMH battery production to power battery upstart

in addition to the booming special paper business, Cairn completed the acquisition of some shares of Cairn battery in June this year, which also opened new growth space for its subsequent development

on June 2, 2009, the first extraordinary general meeting of Cairn in 2009 deliberated and passed the proposal on the company's acquisition of 78.80% equity of Zhejiang Cairn Battery Co., Ltd. and the proposal on the company's non-public offering of shares

Cairn shares purchased 78.8% of the equity of Cairn battery at a payment price of 96.4886 million yuan; At the same time, in order to raise the necessary funds for the development of battery business, Cairn shares plans to issue no more than 40million new shares to specific objects at a price of no less than 8.51 yuan/share, and plans to raise 340million yuan

ACTC R & D center is China Hengrui and Germany Fraunhofer Chemical Technology Research Institute jointly promote the production of composite products in a wide range

the raised funds are mainly used to increase the capital of Cairn battery to implement the technical transformation of new power batteries with an annual output of 250million and to increase the capital of the battery company to implement the new construction of vehicle power batteries

there are many lithium battery manufacturers in China, including Shanshan Co., Ltd., and our advantage in the battery industry lies in the nickel hydrogen battery technology. Tianzhiqiang pointed out

according to the data, Cairn battery has always had long-term cooperation with Zhejiang University, mainly engaged in the development, research and industrialization of nickel hydrogen battery, a national 863 key high-tech project. Panhongge, a professor of Zhejiang University, served as the general manager of the company

it is worth mentioning that Cairn group promised at the time of equity transfer that if the actual net profit of Cairn battery in the year when the equity transfer was completed and the subsequent two consecutive accounting years failed to reach the net profit forecast agreed in the equity transfer agreement, Cairn group would compensate in cash. According to the assessment and forecast, the after tax net profit of Cairn battery in April December 2009, 2010 and 2011 could reach 12.0712 million yuan respectively 16.9271 million yuan and 21.9531 million yuan

however, due to the impact of the financial crisis in the first half of this year, Cairn battery developed more slowly than expected. In the first half of this year, it realized a net profit of 3.06 million yuan, which is far from the expected net profit of 12.07 million yuan in 2009

however, the annual production capacity of calcium carbide is controlled within 45million tons. BYD, a competitor that also produces power batteries, is favored by Warren Buffett, the stock god. It also makes the market have many expectations for automotive power batteries. An industry analyst pointed out that from the perspective of the two business prospects of Cairn, the automotive power battery as a new energy has more room for growth, because the market capacity of the special paper industry is limited and its growth is limited; Under the medium and long-term trend of increasing energy shortage, new energy vehicles will become more and more popular, and the demand for automotive power batteries will be gradually released

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