Helmets: Policy-Driven Trends Highlight Opportunities in the Materials Market

Recently, a traditional industry has suddenly experienced a significant surge, bringing joy to many investors, and that is#Helmet industryFor example, one of the companies in the industryNanjing Julong(300644) has increased by more than over two days.25%Other players such as#Chunfeng Power（603129）、#XINJE ElectricThe stocks of (603416) have also risen sharply.

Nanjing Julong Stock Price Change (Source: Baidu)

In simple terms, as a means of protecting the headProtective EquipmentHelmets are almost everywhere in our daily lives.

When something unusual happens, there must be a reason. The helmet industry has gained a lot of attention, likely due to some stimulating news. For example, not long ago, Beijing's Non-Motor Vehicle Management Regulations were opened for public comments. One important point mentioned is the requirement for all electric bicycle riders to... Wear a compliant helmet.

What is the current situation of the helmet industry chain? Can the players benefit from it? Today, the author will take you to explore it.

If we extend the timeline and focus on results, you will find that the market size of helmets in our country has grown from 1.276 billion yuan in 2015 to 2024.65 billion yuanThe market share for riding helmets is 85.3%, while the market share for police helmets is 3.5%.

In addition, in 2024, the production of helmets in our country surpassed 80.1 million units. It is worth noting that this figure was less than 25 million units ten years ago.

The market size of the helmet industry (Source: Huajing Industry Research Institute)

The growth behind the market size,On the one hand,In recent years, the rise of the takeaway economy has become the biggest "driving force." By the end of 2024, the number of online takeaway users in China has reached... 545 million peopleThis accounts for about half of the overall internet users. As a result, the scale of food delivery riders has further expanded, which to some extent has stimulated the growth of demand in the helmet market.

As of the end of 2024, the number of electric bicycles in our country has reached a level that clearly illustrates the issue.400 million vehicles。

On the other hand,From a policy perspective, the "One Helmet, One Belt" safety campaign has been promoted for several years, with officials repeatedly introducing relevant policies and regulations requiring riders to wear safety helmets.

The scale of online food delivery users in China (Source: iiMedia Research)

When we open up the helmet industry chain, you will find the industry chain... The main components include raw material and equipment suppliers, and the industry chain. For helmet manufacturers, For end applications such as bicycles and motorcycles.

Helmet Industry Chain

According to analysis by professional institutions, one of the materials for future development is carbon fiber composite material, which has a density that is only a fraction of traditional ABS/PC.1/3Impact strength enhancement40%Moreover, it is a "good assistant" for helmets.

From the perspective of the competitive situation in the midstream of the industry chain, there are many brands producing helmets in the market. However, frankly speaking, the quality of the products is also uneven.

The concentration level of the industry is still relatively low at present.Nearly 70%The helmet industry-related enterprises are small and medium-sized enterprises, and the high-end market is still dominated by foreign brands.

In recent years, with the support of national policies, the expansion of market demand, coupled with technological development and industrial upgrading, domestic helmet companies have gradually entered the high-end market. Pengcheng Helmets has become an important means, with a daily production of over 10,000 helmets. It is expected that exports to the European market will continue to grow this year.

Looking downstream, the participation rate in outdoor sports, such as cycling, is gradually increasing, which is driving the rapid expansion of the market for outdoor sports equipment like professional sports helmets. As a result, the market share of helmets in the professional sports sector is also continuously rising.

If we look upstream, there are still some players in the capital market deeply cultivating this industry.

For example, the most comprehensive and largest modified plastic production enterprise.#GOLDEN HAIR TECHNOLOGY(600143). To know,Modified plasticsIt is one of the raw materials for helmet production. In terms of performance, the net profit attributable to the parent company in the first half of this year increased by at least compared to the same period last year.45%One of the reasons behind this is the steady increase in market share of modified plastic products.

Moreover, one of the company's characteristics is its expansion into international markets. Since June last year, production has commenced at bases in Vietnam and Spain. Currently, overseas bases in Poland, Mexico, Indonesia, and others are accelerating their construction. At a time when many industries in China are experiencing "involution," going abroad may be the right path.

In addition, the high-performance polymer modified materials produced by Nanjing Julong mentioned at the beginning can also be applied to helmets, making it one of the upstream players in the industry. From the situation in the first quarter of this year, both operating income and net profit attributable to the parent company have increased year-on-year.30%Since its listing in 2018, it has reached a new high.

The company's performance growth is primarily due to the expansion of its overseas business and entry into the drone component sector. The related products have already entered the supply chains of several domestic OEMs, and the connection to the helmet industry is not very significant.

Furthermore, upstream helmet equipment is also one of the key areas of interest for investors. According to professional institutions' forecasts, core equipment...Injection molding machineThe incremental demand will have an increase of at least 1 billion yuan in the future.

One of the industry players#TopstarThe injection molding machines of (300607) are mainly suitable for the home appliance and automotive parts industries, and they have the capability to provide a full helmet production line solution with a combination of robotic arms, injection molding machines, and auxiliary equipment. However, the company's performance has faced a significant downturn, with a revenue decline of 36.92% last year and a net loss of 245 million yuan.

Not all players can keep up with the pace of growth in the helmet industry. Identifying the highest part of the industry's value chain to enter is a long and arduous journey for the players.