High-speed rail construction into a comprehensive high-speed growth cycle, driving high-speed rail with heat shrinkage material market expansion. High-speed iron heat shrinkage material is mainly used in high-speed rail plate, in the track when the electrical signal can be insulated to protect the function, and other electromechanical locomotive circuit protection is also useful. In accordance with the national "second Five Year Plan", high-speed railway construction in 2015, 2020, respectively, to 16,000, 30,000 km of construction mileage, according to our estimates of thermal materials, high-speed rail heat shrinkage of the market demand in 2015 Year, 2020 will reach 930 million, respectively, 1.75 billion. High-iron heat shrinkage material gross margin of 50% or more, 2010 heat shrinkage material consolidated gross margin is 28%, high-speed rail heat shrinkable material industry will become one of the highest profit margins.

Automotive wiring harness with heat shrink material, China's market share is expected to further enhance. At present, China's domestic heat-shrinkable materials for automotive manufacturing market share is still very low, only about 20% of the global 80% of the market share by the United States Rui Kan and Japan's Sumitomo occupy, with the domestic automotive industry certification on the comprehensive And the cost of the advantages of automotive heat shrink tubing market share is expected to further improve the current domestic production of automotive double-walled heat shrink tubing price is only the United States Rui Kan, Japan Sumitomo 20% -50%. According to the current domestic supply analysis of the automotive industry, if all replaced by Chinese-made car with heat-shrink tubing, the average use of each car value of about 100-200 yuan, and the use of foreign thermal casing prices For 200-500 yuan. Assuming that China's automotive heat shrink tubing market share increased to 40%, the global annual production of 70 million units, China's automotive heat shrink tubing market space will reach 4.2 billion. And the current car with heat shrink tubing gross margin between 40-50%, higher than the industry average.

Electronic heat shrinkable material growth. After the rapid growth of electronic products, the market capacity, we believe that the local has begun to saturation, the future of electronic products will be the era of differentiation. Electronic thermal materials for the growth of market space, basically with the electronics industry as a whole has been growing, we expect the next five to 10 years of global electronic consumption will be a stable and stable pattern, the pattern of differentiation will be maintained, and The total growth will remain at around 10%, which will make the growth rate of electronic heat shrinkable material is also maintained at about 10%.

Power heat shrinkage materials will grow with the growth rate of grid investment. Power heat shrinkage material is mainly cable accessories, which accounts for about 1.3% of the grid investment, the market capacity by the year the total investment in the power grid decision, with a certain volatility. At present, power heat shrinkable materials are mainly used for 35KV and below the low-voltage cable accessories, and high-voltage cable accessories mainly prefabricated, cold-based materials. We expect low-voltage cable accessories in the cable accessories accounted for about 40%, then according to estimates, 2015 national grid investment will reach 2.5 trillion, of which cable accessories for the 325 billion, low-voltage cable accessories market space of 13 billion.

Other types of heat shrinkage widely distributed, pipeline anticorrosion heat shrink zone will benefit more obvious. Oil pipelines, heating pipes and some hundreds of kilometers long, and each steel pipe is only 12 meters long, heat shrink tape has become the first choice for pipe joints corrosion protection materials. China's nuclear island thermal materials are now all provided by the United States Rui Kan, heat shrink material localization of the larger space. A nuclear island with the amount of heat shrinkage material is 10 million yuan, a conventional island is the amount of 200 million.

Investment rating: We give the "good" rating to the thermal shrinkage industry as a whole. Suggestions concerned about the heat shrinkable materials industry listed companies: Chang Park Group, Wal-Mart, China Branch Yinghua; focus on the only high-speed rail certification and will benefit: Chang Park Group.