Multi-agency research Hengdian East Magnetic Metal Powder Core demand will continue to increase

Recently, a number of investment institutions went to Hengdian East Magnetic to conduct research. According to reports, Hengdian East Magnetic was founded in 1980 and listed in 2006. It is a high-tech enterprise with two major industrial clusters of magnetic materials + devices and new energy. In the "Magnetic Materials + Devices" plate, the company is the world's largest manufacturer of ferrite magnetic materials. The output of permanent magnetic ferrites and soft magnetic ferrites is the first in the world. The production capacity of pre-fired materials has increased from 170000 tons at the beginning of the year to 180000 tons. Permanent magnet ferrite increased from 140000 tons at the beginning of the year to 160000 tons, and soft magnetic ferrites increased from 35000 tons at the beginning of the year to 40, 000 tons. In the future, with the growth of demand in new infrastructure and other application fields, such as 5G base station, big data center, cloud computing, wireless charging and so on, it will drive the sustainable development of the company's magnetic material industry. The company is a leading manufacturer of vibration motors in China. The production capacity of vibration motors has increased to 400 million from 350 million at the beginning of the year, and the global market share of mobile phone vibration devices is more than 20%. The main growth of the device industry is concentrated in inductors, circulators / isolators. The circulator / isolator has been supplied in bulk for three or four communication equipment manufacturers, and the low-power products have completed the recognition of the localization of the world's major communication equipment manufacturers, and are currently in the stage of stable delivery of orders. the inductor industry has orderly promoted a series of investments in integrated inductors, laminated inductors and thin-film inductors, and market expansion has achieved initial results. In the "New Energy" sector, the company is the leader in single crystal battery chips, with a mass production conversion rate of 23%. It will have the capacity to produce 600MW wafers, 10GW batteries and 5GW components annually by the end of 2021. The lithium battery industry continues to dig deep into small power market segments such as electric bicycles, portable energy storage, power tools and floor-sweeping robots. While continuously promoting cooperation between key products and middle and high-end customers, initial results have been achieved in overseas market development. a number of customers have formed small batch supplies.

Hengdian East Magnetic said that from the first half of 2021 revenue, magnetic materials revenue of 1.986 billion yuan, photovoltaic 2.967 billion yuan, devices 266 million yuan, lithium 324 million yuan; According to the gross profit margin of the first half of the year, the gross profit margin of magnetic materials is 27.10%, and that of photovoltaic is 13.53%. The main reason for the decline in gross profit is the substantial increase in raw material prices and ocean transportation costs, and according to the provisions of the new income criteria, transport handling charges are listed in operating costs as performance costs. In the proportion of net profit, magnetic materials account for the highest proportion. In the first half of 2021, photovoltaic, magnetic materials, lithium batteries and devices increased by 138.55%, 36.34%, 96.94% and 31.37% respectively. Among them, the growth rate of each industry sector is much higher than the industry average.

The company's metal magnetic powder core is mainly used in photovoltaic inverters, new energy vehicles, 5G base station power supplies and filter inductors in server routers and so on. The company classifies magnetic materials into a broad category and does not count the sales revenue in each field.

With regard to the trend of metal magnetic powder cores used in photovoltaic inverters, Hengdian East Magnetic introduced that alloy magnetic powder cores are used in inverters in photovoltaic power generation systems. High-performance iron-silicon powder core materials are basically used in high-power AC inverter inductors and Boost boost inductors. According to statistics, the average metal magnetic powder core material required per kilowatt installed capacity is 0.38kg. With the promotion of dual-carbon targets, photovoltaic power generation capacity will continue to increase. Correspondingly, the application amount and permeability of magnetic powder cores will become higher and higher, and the demand in China alone is expected to exceed 10,000 tons.

The field of power electronics is developing towards the trend of high power density and miniaturization design, and the inductor per unit volume needs to bear more current. In many fields, ferrite needs to be designed with alloy magnetic powder core because the saturated flux density Bs is difficult to meet the design requirements. This design trend will not change in the next 5-10 years. We estimate the applications of photovoltaic inverter, new energy vehicle, 5G base station power supply, server / router power supply, UPS, VRM and other industries, and it is estimated that the demand for magnetic powder core will reach 63000 tons by 2025. At present, the market is estimated to have a volume of more than 30,000 tons, and more than a dozen domestic enterprises are making this product, but the proportion of head enterprises will be higher, but with the continuous expansion of customers and market, the concentration will be dispersed. The company hopes that with the help of soft magnetic ferrite technology and customer advantages, through several years of efforts to metal powder core also achieve a leading position in the industry.

In terms of the future application of ferrite, Hengdian East Magnetic said that with the improvement of the energy consumption standard of frequency conversion air conditioners, the frequency conversion compressors will be dominated by NdFeB and the fan motors will be dominated by ferrites. The application of ferrite will also increase steadily in the future, which is mainly reflected in: first, the upgrading and upgrading of white goods and small appliances; second, the higher the degree of automation and intelligence of traditional cars and new energy vehicles, the more motors will be applied; third, with the improvement of the application of industrial interconnection and automation equipment, more motors will be used. All of these areas will increase the demand for permanent magnet ferrites.