This holiday, masks have become the most scarce resource. On the Internet, old men use bras as masks, and aunts use grapefruit skin as masks, but medical authorities say that these actually have no protective effect in the face of the virus...

During this holiday, masks have become the most scarce resource. On the Internet, old men use bras as masks, and aunts use grapefruit skin as masks, but medical authorities say that these actually have no protective effect in the face of the virus... A doctor from Wuhan Union Hospital said in an interview with CCTV that a department only received 4 N95 masks a day. A vehicle with Hubei A0260W directly took a box of 3M masks from the Wuhan Red Cross Warehouse, arousing public outrage on the Internet, and relevant leaders were held accountable. Dali intercepted 40,000 masks sent to Chongqing and Huangshi, Hubei, which also aroused collective criticism from the central media and was retrieved by the officials of the latter two places.

Economicly developed provinces and cities such as Jiangsu, Zhejiang, Guangdong, Shanghai, and Beijing will set the resumption of work node at 24:00 on February 9. According to DingTalk data, nearly 200 million people work online this week. In addition, those who do not use DingTalk but also have travel needs, assuming that 300 million people resume work next Monday. If you only consume one mask a day outside, you will also generate a demand of 300 million masks per day.

01 Under the rapid expansion of demand, mask stocks soared strongly

When the epidemic caused the Chinese economy to press the pause button, the rapidly expanding demand for masks has made the mask concept stock in A-shares rise with the wind and become the most certain growth stock.

Take Ogilvy Medical as an example. Its stock price rose by more than 60% in January 2020, with a closing price of 20.79 yuan/share on January 3, and a closing price of 50.25 yuan/share on February 6, with an increase of 141.85% in one month. Nanwei Co., Ltd., Xinlun Technology , Lanfan Medical, and Yuyue Medical have also hit the daily limit in recent days.

, and another mask concept stock, Jiete Biotech (688026), which has just landed on the Science and Technology Innovation Board, rose by as much as 108% on February 4, with a latest total market value of 9.2 billion yuan, and the cumulative increase has reached as much as 640%.

However, most of these concept stocks have entered the mask industry "cross-border". For example, Ogilvy Medical, Yuyue Medical, etc. are companies that produce medical devices, and the revenue share of medical protective products such as masks is not high. Zhende Medical's mask-related products revenue in 2018 was only 54.25 million yuan, accounting for 3.83% of the total revenue.

is at the upstream of the mask industry chain, and listed companies that provide spunlace non-woven fabrics, polyester filaments, polyester wool strips and other raw materials have also skyrocketed, such as Xinlun Technology, Xinlong Holdings, Jihua Group , etc. Among them, Jihua Group is a military light industry manufacturing enterprise, and civil products are not its main business; while Xinlun Technology's main business is cleaning business (Table 1).

02 The power of manufacturing in China: cross-border conversion of enterprises and support

to expand production capacity is not something that can be achieved overnight. It takes a cycle for a mask to produce upstream raw materials, to manufacture and packaging in the midstream, to downstream distribution to sales in various channels.

But now, with the spread of the epidemic nationwide, many people in remote areas have also begun to wear masks, and masks have become a daily "necessary need". The sudden expansion of demand, even if 3M and Honeywell stocks were smashed, factories around the world were launched and masks were produced in 7 days and 24 hours a day, and the "far water" was difficult to save the "near fire".

At this time, the most important thing is to concentrate on the power of China's manufacturing. In order to fill the gap, major domestic enterprises stood up and started to produce masks day and night since the Spring Festival.

Among them, a wave of magical operations of Wenjian Medical have been widely circulated on the Internet. As early as December 20, 2019, it had already started to produce masks at full capacity. In more than a month, more than 100 million masks were produced, and the daily production of and can reach 3 million. What’s even more amazing is that “big factories” such as Sinopec, Shanghai General Motors, Wuling Hongguang, and Foxconn have also renovated mask production lines to increase production capacity and make up for the gap.

htmlOn February 6, Sinopec (600028) posted a wide "hero post" on its official Weibo - "I have meltblown cloth, who has mask machine ?", "We can purchase all masks for increased production to support Hubei's front-line anti-epidemic, or support the places where enterprises are located to prevent and fight the epidemic." It said that it has raw material meltblown cloth, and it urgently needs mask machines to increase production of masks to fight the epidemic.

The Sinopec subsidiary Yipaike, which undertakes mask production this time, is the largest industrial product e-commerce platform. It has rich reserves of raw materials for masks - meltblown cloth, so as long as the mask machine is available, production will start in minutes. Sinopec also stated that the company has meltblown fabric, and if any company lacks this raw material, the company can transport it to the door.

It is not difficult to see that producing masks is not difficult. This is especially true for production companies with decades of history, Foxconn, which has no shortage of resources such as transformation of production line capabilities, raw material procurement, and labor.

Industrial Foxconn (601138) announced on February 7 that it has added a new production line for medical masks . It is currently expected that it can achieve a production capacity plan of 2 million per day by the end of February, and will be given priority to the internal production and epidemic prevention guarantee of nearly one million employees of Foxconn Group; it does not occupy social resources and makes room for the people's mask needs; in the future, it actively supports and exports to the outside world depending on the situation, providing strong support for the current epidemic prevention and control work. At present, its first production line with a daily output of 100,000 masks is still in the trial production stage, and product qualification certification is still under application.

If "everything can be Foxconn", then how could SAIC-GM-Wuling, the "national god car"?

htmlOn February 6, SAIC-GM-Wuling, a subsidiary of automotive leader SAIC Group , plans to join hands with suppliers to switch to production masks by renovating production lines. Its dust-free workshop is renovated by Guangxi Construction Engineering Group and will be completed and put into use within this month. The project plans to build a total of 12 mask production lines, including N95 and general medical protective mask production lines, with a daily production volume of more than 1.7 million.

Because masks and car sound insulation cotton are the same material, SAIC-GM-Wuling and suppliers can make masks by changing production lines.

In fact, companies like Sinopec, Foxconn, SAIC-GM-Wuling have high-standard clean workshops and sealed workshops, which are most suitable for producing masks.

Compared with the "cross-border" of giants such as Sinopec, Foxconn, and SAIC-GM-Wuling, diapers and underwear manufacturers switch to masks to produce them is even more natural.

Recently, a group of merchants such as Daddy Baby, Sangut Underwear, Hongdou Clothing, Mercury Home Textiles urgently applied for qualifications, and stopped their original production plans such as diapers and underwear, and changed to medical masks overnight to rush to the front line to fight the epidemic. Daddy Baby's official Weibo shows that after switching to production of masks, its production capacity has accelerated to 1.4 million as of February 6.

As the epidemic enters the most difficult period of outbreak, not only masks have received support from various companies, but also companies have stepped forward as long as the materials that are urgently in short supply of the epidemic.

powerful Jinjiang clothing company took the initiative to take the lead in the conversion of protective clothing this time. After donating 3 million yuan, Lilang Group cooperated with Jinjiang clothing companies such as Slan Group, Jiujiuwang Food, Xunxing Zipper, etc. to "make strong efforts, work hard, work hard, work hard, work hard, work hard, and work hard," and achieved mass production of professional medical protective clothing in 3 days.

is everywhere to convert production, Shaoxing wine from Longshan, Guyue, Zhejiang, plans to produce 60,000 bottles of disinfectant alcohol. A company producing liquor in Liaocheng, Shandong also temporarily decided to switch production and donate 100,000 bottles of 75% alcohol to the front line of the fight against the epidemic.

With the gradual recovery of the original production capacity of masks and the rapid launch of new production capacity, the shortage of masks will be expected to be alleviated, but can it support the arrival of the rework wave?

03

4689 mask companies, can China's mask production capacity support the arrival of the rework wave?

What is China's overall mask production capacity? If 300 million people go to work after the New Year and have a mask every day, can they be supplied?

Zhejiang Provincial Department of Economic and Information Technology said that as of January 26, 32 protective material production enterprises in the province have resumed work and production, of which the daily production capacity of N95 masks and medical masks has reached 35,000 and 1 million respectively.

The Shanghai Economic and Information Commission released a news release on the 27th. After investigation, it is currently found that the daily production capacity of masks in Shanghai is more than 1.8 million.

Shandong Provincial Department of Industry and Information Technology dispatched 23 key production enterprises for medical masks and protective clothing in the province. Currently, the daily production capacity of medical masks reaches more than 2 million.

Guangdong Provincial Department of Industry and Information Technology reported that as of January 25, 29 mask manufacturers were investigated across the province, 10 resumed work, and a daily output of 760,000.

Ke Wenbin, deputy director of the Anhui Provincial Department of Economy and Information Technology, revealed on January 27 that Anhui Province has a daily production capacity of 1 million protective masks.

media reported that at present, Tianjin TEDA Clean Materials Co., Ltd. has a daily production capacity of 10 tons, and can produce 7 million to 8 million masks. Hubei Daily said that as of January 26, 35 companies in Xiantao have resumed production, producing 2.7 million masks per day.

The Ministry of Industry and Information Technology stated that the maximum production capacity of masks in my country is more than 20 million per day; after working overtime, the production capacity has reached more than 8 million per day, and the resumption of work and production has reached 40%.

If the above-mentioned public information is simply accumulated, China can produce about 17.3 million masks in a day, which is close to the maximum production capacity estimated by the Ministry of Industry and Information Technology (if the full resumption of work, the national maximum daily production capacity will be close to 20 million).

Qixinbao data shows that there are 4,689 mask companies, 64 protective clothing companies, and 17 goggles companies nationwide, focusing on Yangtze River Delta , Pearl River Delta, Beijing-Tianjin Yi and other regions. Among them, Shandong Province has the largest number of mask companies, with more than 1,000 in the province; Zhejiang and Jiangsu provinces have also exceeded 500; and Hubei Province, the most serious "epidemic area", also has 197 mask companies, and the number of protective clothing companies ranks the largest in the country, reaching 20 (Table 2). Judging from the distribution of the number of enterprises in each province, it is roughly consistent with the mask production capacity information released by the above provinces.

Not only can domestically accelerate production speed, but the customs also implements rapid customs clearance for imported epidemic prevention and control materials, so as to ensure "zero delay" customs clearance. On January 31, according to the General Administration of Customs, the General Administration of Customs, said that from January 24 to 30, my country imported 16,139 batches of epidemic prevention and control materials, 59.178 million pieces, worth 290 million yuan. Among them, there were 56.228 million masks. Among the

.29 billion yuan imported epidemic prevention and control materials, protective supplies account for 55.2%, with a total of 58.853 million pieces, worth 160 million yuan. In addition to masks, there are 69,000 pairs of goggles and 738,000 protective clothing; a total of 107,000 boxes of medicines, worth 13.436 million yuan; a total of 36,000 disinfection items, worth 656,000 yuan; a total of 95,000 medical devices, worth 21.281 million yuan.

On January 30 alone, my country imported 7,880 batches of epidemic prevention and control materials, 21.968 million pieces, worth 190 million yuan. Among them, there were 20.825 million masks, 32,000 pairs of goggles, and 259,000 protective clothing.

html Starting from February 10, the Spring Festival ends, 300 million people in China will rework, one mask a day, and at least about 300 million masks are needed a day. The highest daily mask production capacity in the country is 20 million. If the full resumption of work can produce about 140 million masks, the total amount of 56.228 million imported (assuming it is weekly) is 56.228 million, which is only about 200 million. This is the mask production capacity under the extreme circumstances. The national mask production capacity of a week is not enough to supply a day's use, which is obviously difficult to maintain the magnificent 300 million people's full start of construction.

Therefore, the most economical, labor-saving and safe way is to respond to the national call. If you can work from home remotely, don’t add burden to the country and let masks be used on the edge.

It is worth mentioning that although the high-end manufacturing industry is slightly inferior, the shutdown of China's manufacturing industry and the outage of "Made In China" have had an impact on the daily lives of many other countries and regions under the global environment. For example, because of concerns that companies producing tissues switch to masks, Hong Kong citizens who are dominated by fear are rushing to buy toilet paper, and the supermarkets of Singapore have also been sold out. Some places in Africa have begun to lack daily necessities...

In addition to gathering the strength of the whole country to produce masks and protective clothing, reflecting the greatest advantage of China's manufacturing industry, the "speed" reflected behind this race against the epidemic - the 10-day construction of Huoshenshan Hospital also made everyone cheer for the "infrastructure madman" who raced against time. But the hardships, complexity and difficulties behind them are beyond imagination.From China Construction Third Bureau to the design drawings; to Wuhan AVIC Group enter the site to level the land, Gao Energy Environment and Oriental Yuhong are responsible for anti-seepage and sewage treatment; to the State Grid 24-hour continuous construction; to Huawei , China Mobile , China Unicom , China Telecom jointly complete 5g signal coverage 36 hours; to Sany Heavy Industry, Zoomlion Heavy Industry, XCMG Machinery sends excavators...; to all material transportation, from domestic and global green channels jointly opened by Chinese logistics giants such as SF Express, Postal, "Three Connections and One-Da", Alibaba Logistics Platform and other Chinese logistics giants. I'm afraid only China can do the coordination, mobilization and persistence behind this.

"The dragon in the whole village gave the hardest scales to Wuhan", come on, mask production capacity! Come on Wuhan! Come on, China!

This article is from New Fortune