Professional paper products company in China produces a wide range of household paper products with best price.

The cost of pulp accounts for nearly half of the cost of household paper, which is a high level. Pulp costs occupy a high proportion in the cost composition of the household paper business. Taking Vinda International as an example, according to our estimates, pulp costs account for 51% to 70% of the total cost of its household paper business from 2015 to 2021. According to the 2020 annual report of Zhongshun Jierou, pulp costs account for about 40% to 60% of the company's production costs.

The price change of wood pulp and the performance of the company's gross profit margin and net profit margin showed a reverse change relationship. We judge that this has two main effects: 1) the price of wood pulp has a certain periodicity; 2) Household paper is a 2C product, and the final price is relatively stable.

Looking back, 2018-2020 is the downward cycle of wood pulp prices, in two years, the price of softwood pulp dropped from 6795.9 yuan/ton to 4714.0 yuan/ton, a decrease of 30.6%, and the price of broadleaf pulp dropped from 5726.9 yuan/ton to 3625.5 yuan/ton, a decrease of 36.7%. At the same time, the gross profit margin of Vinda International household paper business and Zhongshun Jierou reached 38.3% and 41.3% respectively in 2020, up 10.7pct and 7.2pct respectively from 2018. As of May 2021, the price of wood pulp continued to rise, reaching a high level and falling in the second half of the year, effectively reducing the cost burden of household paper business, and having a good impact on the profitability of paper enterprises.

In 2022, the new capacity of wood pulp is expected to be put in, and the high price of pulp is expected to be loosened. New supply of wood pulp is expected to gradually come on stream. Since 2012, the global supply of wood pulp has remained relatively stable, but this pattern is expected to be broken in 2022, mainly due to the expected substantial growth of broadleaf pulp capacity. The Bracell installation in Brazil and the MAPA installation in Arauco in Chile will be put into production by the end of 2021, with a combined capacity of 4.1 million tons/year, while the UPM new installation in Uruguay will also be put into production in mid-2022, bringing 2.1 million tons/year of capacity. As the pulp and paper industry is a heavy asset industry, the capacity construction period is longer, so once the capacity construction starts, the sunk cost is higher, "difficult to go back", compared with 2020, it is estimated that the global broadleaf pulp capacity will increase by 6% and 5% respectively from 2022 to 2023, and it is expected to increase by 19% by 2025; Softwood pulp production capacity is expected to grow steadily, the annual growth rate of 2020 to 2025 is expected to be less than 1%, mainly because no new installation is put into operation, and the old installation is close to full production, and it is estimated that the operating rate of softwood pulp installation is nearly 92% in 2022.

On the demand side, the new demand for global wood pulp mainly comes from China, including cultural paper, white cardboard, household paper and so on. We believe that under the trend of paperless office, electronic teaching and online media, the overall demand for cultural paper is expected to gradually decline, taking double copper paper as an example, the apparent consumption of double copper paper from 2009 to 2020 only achieved a compound annual growth rate of 1.4%. White cardboard is used for downstream packaging, and the growth rate of consumption has decreased slightly since 2017, and the compound annual growth rate from 2017 to 2020 is 3.9%, which is in the stage of slow growth. The consumption of household paper shows a steady growth trend, with an average annual compound growth of 7.5% from 2009 to 2020. From the perspective of demand segment, there is no significant growth factor.

Toilet paper is one of the essential sanitary ware in the bathroom, and its frequency of use is very high. Whether in a public bathroom or a family bathroom, toilet paper is essential. Now let's introduce toilet paper. Toilet paper is generally made of paper, the form can be divided into two kinds of roll paper and paper. Roll-type toilet paper is generally placed in the roll, and one can be extracted when used; The paper is generally placed in front of the user for easy access. The main use of toilet paper is to clean hands. When people use the toilet or wash their hands, they need to use toilet paper to clean their hands and keep them hygienic. The use of toilet paper is very simple, open the toilet paper dropped on the hand, gently knead the hand can be. When using the toilet paper, you should apply proper force to wash your hands thoroughly. However, it should be noted that you should not use toilet paper too much, because it will waste resources. The quality of the toilet paper is very important. A good paper towel should be soft, non-shedding, non-irritating, and not cause skin irritation or irritation. In addition, good quality toilet paper absorbent performance is also very good, when using can quickly absorb the moisture of the hands, keep the hands dry and fresh. Besides cleaning your hands, toilet paper can also be used for other things. For example, before eating, wipe your hands with toilet paper, which can effectively avoid bacterial infection on your hands to food. In addition, modern science and technology has also invented some toilet paper with special purposes, such as scented toilet paper, toilet paper with disinfection function, etc., can meet the needs of different groups of people. The use of toilet paper should follow certain hygiene requirements. First of all, people who use toilet paper must pay attention to hygiene, do not touch the toilet paper with dirty hands, so as not to cause cross infection. Secondly, people who use toilet paper should not touch the surface of other objects, which can also be effectively avoided.

Paper towels: A necessity in our lives, but also an important resource and environmental issue. As a necessity in daily life, smoking paper towels has brought us convenience, but it has also brought us problems of resource waste and environmental pollution. Therefore, we need to make better use of tissue paper to save resources and protect the environment.

Tissue paper is a common daily use, mainly made of paper and additives. The differences between different brands mainly lie in raw materials, production processes and quality control. However, regardless of the brand of tissue paper, their main ingredients are the same. Therefore, we should pay more attention to the method of use and recycling when using tissue paper.

In daily life, the use of tissue paper is very wide. For example, wipe dirt, clean private parts, etc., need to use tissue paper. In terms of environmental protection, paper towels also play an important role. It can replace single-use plastic products such as plastic bags, thereby reducing waste and waste generation. In the future production process, the paper towel industry can focus more on the use of degradable raw materials and manufacturing processes to reduce the impact on the environment.

In order to make better use of tissue paper, we can take the following ways:
Use non-woven paper: Non-woven paper is made of cellulose fibers and is more environmentally friendly than traditional cotton or wood pulp paper. The use of non-woven paper can reduce fiber waste and reduce the impact on the environment.

Recycle tissue paper: When using tissue paper, we can use it as many times as possible. For example, after wiping the table, you can fold up the remaining tissue paper and put it in a garbage bag so that it can be reused the next time you clean it. This reduces waste and reduces the impact on the environment.

Focus on packaging materials: Choosing recyclable packaging materials can reduce plastic pollution. For example, using biodegradable plastic bags or homemade cloth bags to pack tissue paper can reduce the impact on the environment.

Reduce disposable use: Try to avoid using disposable tissue. If you must use it, minimize the amount and store it in an airtight container to reduce waste.

In short, although it is a necessity in daily life, the problems it brings are also worthy of attention. In order to make better use of tissue paper, we need to take a series of measures, such as the use of non-woven tissue paper, recycling paper and so on. At the same time, we should also pay attention to the problem of packaging materials and one-time use, minimize waste and environmental pollution, and leave a good ecological environment for future generations.

Although there are some current problems with paper towel pumping, there are still some steps we can take to improve these problems. For example, strengthen the supervision of raw materials and production processes, and promote environmentally friendly tissue paper. As long as we work together, we can make better use of tissue paper and contribute to the cause of environmental protection.

Time：2023/12/20

The concentration of the industry is relatively low, and the "four strong" leaders occupy a dominant position. In 2019, the market share of household paper CR4 was 30.0%, which was only 2.6pct higher than that in 2013. We found that the market concentration of the household paper industry is relatively low, and the trend of leading differentiation is relatively slow. We believe that this is mainly due to the relatively simple production process of household paper, the dispersion of forest resources in China, regional small household paper factories in various regions can also achieve small-scale production, and household paper as a relatively strong commodity with homogenous attributes, some consumers are relatively sensitive to the price. It is more inclined to local brand products with relatively low freight and relatively low brand premium space.

The "top four" show a trend of share change. In the household paper industry, Hengan International's Xinxiang Printing, Zhongshun Jierou's Jierou, Vinda International's Vinda and Jinhongye's Qingfeng stable occupy the top four positions in the industry. From 2013 to 2019, Vinda and Jiesoft's share increase momentum was relatively strong, increasing 1.2pct and 2.0pct to 9.4% and 5.5% respectively.

The consumer groups corresponding to the "Top four" brands still have a certain pursuit of the high quality represented by the brand endorsement. We believe that although household paper has a certain homogeneity attribute, its quality differentiation cognition is relatively similar, that is, in the cognition of most consumers, the quality of paper products with better toughness, thicker paper, not easy to drop scraps, and less chemical residue is higher, and the recognition of this view is relatively high.

The cost of pulp accounts for nearly half of the cost of household paper, which is a high level. Pulp costs occupy a high proportion in the cost composition of the household paper business. Taking Vinda International as an example, according to our estimates, pulp costs account for 51% to 70% of the total cost of its household paper business from 2015 to 2021. According to the 2020 annual report of Zhongshun Jierou, pulp costs account for about 40% to 60% of the company's production costs.

The price change of wood pulp and the performance of the company's gross profit margin and net profit margin showed a reverse change relationship. We judge that this has two main effects: 1) the price of wood pulp has a certain periodicity; 2) Household paper is a 2C product, and the final price is relatively stable.

Looking back, 2018-2020 is the downward cycle of wood pulp prices, in two years, the price of softwood pulp dropped from 6795.9 yuan/ton to 4714.0 yuan/ton, a decrease of 30.6%, and the price of broadleaf pulp dropped from 5726.9 yuan/ton to 3625.5 yuan/ton, a decrease of 36.7%. At the same time, the gross profit margin of Vinda International household paper business and Zhongshun Jierou reached 38.3% and 41.3% respectively in 2020, up 10.7pct and 7.2pct respectively from 2018. As of May 2021, the price of wood pulp continued to rise, reaching a high level and falling in the second half of the year, effectively reducing the cost burden of household paper business, and having a good impact on the profitability of paper enterprises.