New materials, the cornerstone of strategic emerging industries

On November 3, 2009, Premier Wen delivered a speech entitled "Let Science and Technology Lead China's Sustainable Development." Clearly list the new materials industry as one of the country's emerging strategic industries. In the 21st century, the era of knowledge economy, which is based on new materials, whoever has the most advanced materials, can take the initiative in the development of high technology and its industry. The future new materials industry is undoubtedly one of the areas with the most growth and investment opportunities.
——Oriental Securities Strategy Team If steel and cement are important foundations of traditional industries, it is no exaggeration to say that new materials are the cornerstone for the development of strategic emerging industries. Driven by the strong economic recovery in China and the rapid development of high-tech industries, China's new materials market will continue to maintain rapid growth in the future. At present, China's production of many basic raw materials and industrial products ranks among the top in the world, but high-performance materials, core components and major equipment are heavily dependent on imports. Key technologies are subject to people and face a series of key material technology breakthroughs. This is also a huge potential space for the development of China's new materials industry. In 2010, the market size of China's new materials industry is expected to exceed 130 billion yuan. If it is supported by policy, it will achieve leapfrog development.
Material innovation is one of the important driving forces for the advancement of human civilization. Material is the material basis for human production and life, and it is the driving force for directly promoting social development. The constant emergence of new materials has promoted the advancement of human history and promoted the development of technology and the upgrading of industry. In the past ten years, the output value of the world's materials industry has grown at a rate of about 30% per year. At present, microelectronics, optoelectronics, new energy, and new chemical materials have become the most active, fastest-growing, and promising new materials for investors.
China's new materials industry is expected to receive continued support from the policy. As a strategic industry, the new materials industry has been increasingly valued by countries all over the world. The developed countries such as the United States, Japan, and Germany have formulated comprehensive development plans for new materials industries. In the process of the development of China's new materials industry, the government has also given strong support in research funding, industrial planning, industrial policies and the transformation of scientific and technological achievements, and initially formed a relatively complete new material industry system. We expect that as part of the support for strategic emerging industries, the new materials industry will further receive new government support and subsidies in terms of finance, finance, taxation, technology investment, talent introduction and product promotion. China's new materials industry will welcome Come to the high-speed growth period.
“From product to market” – the investment logic of the new materials industry. As the material basis of various industries, new material technology is widely used in various fields, and new material enterprises are scattered in different industries, and the influencing factors for each industry are also different. Due to the particularity of their industries, they are regarded as Separate industries have a certain degree of difficulty. How should investors position in the field of new materials? We believe that the new materials industry needs to pay attention to the following main issues: The first is product positioning. During the “Twelfth Five-Year Plan” period, it mainly includes six major directions: modern transportation, efficient clean energy, environmental resources, civilian production, national defense, and intelligent green manufacturing. The second is overcapacity and technological innovation. To find companies that are constantly improving the technological content of production capacity and can be tested by the market, high-quality enterprises that can grasp the law of industrial development, integrate industrial links and have independent intellectual property rights, can become bigger and stronger, and the third is market demand. Digging. Successful new materials companies need to have the following conditions: a company that monopolizes upstream resources; a company with high technical barriers; the largest company in the industry that can produce economies of scale; a company that re-integrates the upper, middle, and lower industrial chains; Market segments, companies with few competitors; benefit from new national policies, especially those that meet energy conservation and environmental protection requirements. Based on the investment logic of “from product to market”, following the investment principles of product positioning, overcapacity and technological innovation, market demand mining, we recommend focusing on Tianfu Thermal Power, Tibet Mining, Zhongke Sanhuan, Beixin Building Materials, Fangda Group. , Baotou Steel Rare Earth, Variety shares, Yongtai Technology, Hongda New Materials and other listed companies.
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What is a new material? New materials are those that are new or are already in development and that have excellent properties and special functions not found in traditional materials. As the foundation and precursor of high-tech, new materials are widely used. Together with information technology and biotechnology, they become the most important and most promising areas in the 21st century.
 

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