Helium Balloon Hits off the Concept of “Gold Gas”

As the New Year approaches, colorful helium balloons are arranged to create a festive atmosphere, which should be very popular with businesses and tourists. However, according to the latest report of Xinhua News Agency, due to the global helium supply shortage, gas price increase and other factors, Tokyo Disneyland has been limited to selling helium balloons since October. In recent weeks, Disney has stopped selling helium balloons.

The festival balloon is just the tip of the "iceberg" of helium supply, because industrial applications are the major players of helium, and helium is an indispensable raw material for the production of many semiconductor and optical fiber enterprises. The international market of helium continued to rise, which also triggered a wave of "gold gas" fever among domestic manufacturers.

The concept of "gold gas" continues to grow

Gold gas refers to rare gas with complex extraction process and high price. This week, although A-shares entered shock adjustment, helium concept stocks rose sharply, which seemed to show the golden color.

Hang Yang is the world's leading and largest gas separation equipment design and manufacturing enterprise and industrial gas leading enterprise in China. The stock market has performed well in the past two days, with a cumulative increase of 9.21% in the past two days.

Cammet Gas is also a listed company supplying high-purity helium, with a two-day increase of 7.44%. It is noteworthy that another gas company, Huate Gas, will be listed on the Science and Technology Innovation Board today. According to its roadshow introduction, Huate Gas serves more than 80% of domestic integrated circuit manufacturers with a coverage of more than 8 inches. From the published results, the sales revenue of its special gas products from January to September this year increased by more than 54 million yuan, or 19.61%, compared with the same period last year. At the moment when the concept of "gold gas" is in full swing, its stock market performance is expected.

Why is helium and other special gases promising? The direct reason is the influence of supply and demand. In 2019, China's special gas market showed outstanding performance, the overall market resources were tense, and the price of 40L bottled helium rose significantly, more than half higher than the beginning of the year; The supply and demand of xenon market are basically balanced, and the market continues to have high prices; The price of krypton gas market also rose continuously supported by the purchase of large customers.

Expand the layout and seize the opportunity of import substitution

China has long relied on imports of helium. In recent years, the domestic demand for liquid helium has increased by 20%. Influenced by factors such as tight international supply, China's helium imports decreased by 4.3% year-on-year in the first half of 2019, while the helium market price continued to rise.

According to the analysis of international helium experts, helium shortage may last until the end of 2020. In 2020, the demand of high-end and sophisticated industries downstream of rare gas, especially semiconductor, optical fiber, aerospace and scientific research will continue to grow, but relatively speaking, the growth of rare gas market supply is relatively limited. Helium market resources may continue to be strained worldwide.

Hang Yang, a Hangzhou enterprise, undoubtedly tasted the benefits of the gas industry. From equipment manufacturing to gas supply, its transformation and development are of particular concern. At present, Hang Yang has set up 30 gas subsidiaries throughout the country, and the proportion of gas revenue has exceeded that of equipment manufacturing, providing stable cash "milk" for the manufacturing industry.

The gas company invested and established in Qingdao this year is Hang Yang's first semiconductor special gas business. Special gas, due to its high technology content, high added value and great market potential, also makes the development of Hang Yang gas industry more imaginative.

Since 2010, the average growth rate of China's special gas market has been above 15%. It is estimated that the domestic special gas market will reach 41.1 billion yuan in 2022. According to the analysis of investment institutions, thanks to the continuous expansion of China's semiconductor, photovoltaic, panel and other emerging industries, domestic manufacturers have accelerated the layout of special gas industries. For example, Hang Yang and other local competitive enterprises are expected to continue to expand the share of import substitution by virtue of their equipment manufacturing+project operation strength.


Post time: Nov-09-2019