Open Source Securities: Domestic demand for BOPET film is increasing, industry self-discipline is expected to help optimize the situation and improve profitability.

Open Source Securities released a research report stating that since 2022, the profitability of the BOPET industry has been continuously under pressure, which may lead to a slowdown in planned production capacity progress or a decrease in the likelihood of actual implementation. Industry self-discipline will help optimize the industry structure, and enterprise profitability is expected to improve; in the medium to long term, market resources are gradually concentrating on enterprises with cost and technological advantages. This line is optimistic about the rapid improvement of the domestic high-end polyester film product research and development capabilities, with the BOPET industry moving towards high-end and green development. The main points of Open Source Securities are as follows: BOPET film: Domestic production demand is high, optimistic about industry self-discipline helping to optimize the industry structure and improve profitability Biaxially oriented polyester film (BOPET) has excellent performance and is widely used in packaging printing, optical displays, electrical power, photovoltaic new energy, and other fields. During the period from 2014 to 2024, the domestic BOPET industry's production capacity, production, and apparent consumption maintained rapid growth. However, the consumption growth rate lags behind the production capacity and output growth rates, leading to a structural contradiction of "excess low-end products and insufficient high-end products" in the industry. The imbalance between supply and demand has led to a fluctuating price decline in BOPET since 2022, and the listed companies in the industry experienced a decline in profitability in 2022-2023, turning from profits to losses in 2024. The "China BOPET Industry Self-Discipline Initiative" advocates strengthening industry self-discipline to create a fair and stable market environment, which is expected to help optimize industry supply and improve profitability. In the first quarter of 2025, most listed companies in the industry reduced losses. In the medium to long term, market resources are gradually concentrating on enterprises...