On October 16th, the leading domestic high-temperature alloy enterprise, AVIC Shangpu High-Temperature Alloy Materials Co., Ltd. (hereinafter referred to as: Shangpu Shares), will be listed on the Growth Enterprise Market of the Shenzhen Stock Exchange, completing its initial public offering of A-shares.
According to a report by the international market research institute Marketsand Markets, the global high-temperature alloy market was valued at approximately $3.8 billion in 2020 and is expected to reach $5.2 billion by 2025, with a compound annual growth rate of 6.1%. This growth is primarily driven by demand from industries such as aerospace, energy generation, automotive, and petrochemicals. Particularly in the aerospace sector, high-temperature alloys are crucial materials for manufacturing jet engines and gas turbines. With the recovery and growth of global air travel demand, the demand for high-temperature alloys in this field is expected to continue to increase, presenting a very broad market development prospect.
Grand View Research's analysis indicates that with the increase in global investment in clean energy and efficient energy conversion technologies, the application of high-temperature alloys in nuclear power generation and solar thermal energy conversion systems will significantly increase. Furthermore, as the global industrialization process accelerates, especially in developing countries, the demand for high-temperature alloys will maintain a strong growth trend. It is projected that by 2030, the global high-temperature alloy market size will exceed $8 billion.
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As an important domestic producer of high-temperature alloy materials, Shangpu Shares has a huge market development space in the future. According to the company's prospectus, Shangpu Shares has achieved a series of technological breakthroughs in the field of high-temperature alloys and owns multiple patent technologies. The company's products are widely used in aerospace, gas turbines and steam turbines, nuclear engineering, petrochemicals, and other fields, providing it with stable market demand and growth potential.
Data from Wind Information shows that the scale of China's high-temperature alloy market was about 15 billion yuan in 2019 and is expected to reach 30 billion yuan by 2025, with a compound annual growth rate of over 10%. This growth trend provides Shangpu Shares with a huge market opportunity. At the same time, with national policy support and financial investment in the new materials industry, Shangpu Shares is expected to further enhance its competitiveness in domestic and international markets through technological innovation and product upgrades.
In recent years, the market demand for the high-temperature alloy industry has always exceeded supply, and this trend has been expanding year by year. On the one hand, domestic high-temperature alloy production still finds it difficult to meet the growing downstream demand. On the other hand, international giants such as PCC and ATI in the United States possess strong technical strength and brand influence. Foreign products are more advantageous than some domestic enterprise products in terms of purity, consistency, and cost. Therefore, the import dependence of domestic high-temperature alloys is still close to 50%, and the supply gap in the high-temperature alloy market exceeds 200,000 tons. The expansion of the supply and demand gap is partly due to the high barriers in the high-temperature alloy industry and the fact that industry capacity growth is mainly based on the expansion of existing manufacturers. It is also partly due to the complex production process and the long downstream certification cycle, which leads to a relatively slow pace of capacity expansion. In the future, driven by both military and civilian fields, the demand for high-temperature alloys is expected to further increase. According to the forecast of the Prospect Industry Research Institute, by 2026, the scale of China's high-temperature alloy market will grow to 34.2 billion yuan.
Data from the "China High-Temperature Alloy Industry Market Prospect and Investment Strategy Planning Analysis Report" shows that the number of patent applications in China's high-temperature alloy industry has increased by about 50% in the past five years, indicating the active level of technological innovation in the industry. Shangpu Shares ranks at the forefront of the industry in terms of both the quantity and quality of patent applications in this field. As a national high-tech enterprise, the company has obtained 46 invention patents and 20 utility model patents since its establishment, with more than 110 professional and technical personnel in the production and preparation of high-temperature alloys and other special alloys. Since its establishment, the company has undertaken 56 major projects, participated in more than 40 military product verification and evaluation, and achieved early intervention in the preliminary research stage of high-end equipment in the fields of aerospace, weapons, gas turbines, and nuclear engineering. It has fully carried out the research on the recycling technology of various forming methods of high-temperature alloy return materials and the development of special alloy materials for military and civilian use, making outstanding contributions to the independent control and recycling of domestic key strategic materials. This not only reflects the company's continuous investment in technological innovation but also provides a solid foundation for its product competitiveness.
Shangpu Shares' solid scientific and technological strength is attributed to the company's reasonable personnel structure. According to public information, the proportion of employees with master's degrees or above in Shangpu Shares is nearly 3%, and the proportion of employees with bachelor's degrees is nearly 23%. In addition, among the company's R&D team, experts with more than ten years of industry experience account for more than 40%. These data indicate that Shangpu Shares has a clear advantage in talent structure, which can better promote technological innovation and product upgrades.
According to public information, Shangpu Shares' operating income has grown at a compound annual growth rate of 50.35% in the past three years, with the main business gross margin being 18.55%, 17.00%, and 16.69%, respectively. The growth rate of these financial indicators is higher than the industry average, showing the company's financial performance advantage.From 2021 to 2023, the R&D investment of Shangda Shares accounted for a proportion of operating income that continued to exceed the industry average, with a compound annual growth rate of R&D investment reaching 56.09%. This sustained R&D investment has provided strong support for the company's technological innovation and product upgrades.
According to the company's disclosed information, Shangda Shares has established long-term and stable cooperative relationships with many well-known enterprises at home and abroad, including several Fortune Global 500 companies. These cooperative relationships not only bring stable orders and income to the company but also provide strong support for the company's market expansion and brand building.
Shangda Shares' fundraising project, "Annual Production of 8,000 Tons of Ultra-Pure High-Performance Superalloy Construction Project," is expected to have a total investment of 105,249.00 million yuan, which will significantly enhance the company's production capacity and market competitiveness. According to a report by the international market research institution Marketsand Markets, the global superalloy market was valued at about $3.8 billion in 2020 and is expected to reach $5.2 billion by 2025, with a compound annual growth rate of 6.1%. This growth trend indicates that Shangda Shares' fundraising project will enter a rapidly developing market.
Data released by China Industry Information Network shows that China's aerospace industry will develop rapidly at an annual growth rate of over 15% in the next decade, which will directly drive the demand for high-performance superalloys. As an important domestic supplier of superalloys, Shangda Shares is expected to benefit from this growth.
At the same time, with the global emphasis on clean energy, the development of nuclear and solar energy fields has brought new growth points for superalloy materials. Shangda Shares' technological reserves and product development in these fields will help the company seize the opportunities in the new energy market.
According to Shangda Shares' forecast, after the fundraising project is completed, it will add an annual production of 8,000 tons of superalloy materials, which is expected to bring more than 1 billion yuan of additional annual income to the company, significantly improving the company's performance.
As the domestic and international markets continue to expand, Shangda Shares' customer base and market share will gradually increase. According to data from China's Ministry of Commerce, China's international market share of high-end manufacturing products has increased by about 20% in the past five years. As a key material supplier for high-end manufacturing, Shangda Shares is expected to gain more performance growth from this trend.
Shangda Shares will adhere to the corporate philosophy of "innovation-driven, quality-based, customer-first, and win-win cooperation." It is committed to providing customers with high-quality superalloy materials through continuous technological innovation and product development, meeting the high-end needs of the aerospace, energy, chemical, and other industries. We believe that the company is well aware of its responsibilities and missions as a listed company, not only to create stable and substantial returns for investors but also to promote the high-quality development of China's new material industry and contribute to the country's strategy of becoming an industrial powerhouse.