The Zhitong Finance App learned that Zhongbao New Materials (02439) rebounded more than 6%. As of press release, it had risen 6.67% to HK$0.80, with a turnover of HK$5.97 million. It is worth noting that previously, the company's stock price plummeted 85% on January 19 and 22 trading days.
According to reports, Zhongbao New Materials initially focused on the development and manufacture of non-biodegradable automotive plastic parts. Meanwhile, at the end of 2015, Jilin Province took the lead in implementing a “plastic ban” in the country. In response to national policies, Zhongbao New Materials began to gradually shift its business focus to developing and manufacturing biodegradable plastic products. The products include rolling bags, shopping bags, wrapping film, and masterbatches. Currently, biodegradable plastic products have become the company's main source of revenue, contributing more than 90% of its revenue.
Judging from the market growth rate, the future of the industry is worth looking forward to. According to Frost & Sullivan's forecast, in the Northeast China market, the market size of disposable biodegradable plastic products will increase to 3,674 billion yuan by 2026, with a compound growth rate of 36.1% from 2021 to 2026.
Analysts said that under the impetus of multiple policies, China is becoming more and more strict in controlling the pollution problem of disposable plastic products, which has also greatly contributed to the growth of the disposable biodegradable plastic products market.