Company Profile – Capchem Technology Group

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Capchem Technology -
Specialized chemicals that are everywhere

For the next entry in our China Company Series, we’re looking at Shenzhen CapChem Technology – the chemical technology company whose products are used in seemingly EVERYTHING. 

Here is the simplest explanation we could come across – CapChem engages in the research, development, production, distribution, and provision of services of new electronic chemicals. 

So basically, CapChem creates and supplies chemicals for a huge number of industries with clients spanning the entire globe. 

Ready for a breakdown of the products & uses? It’s going to be a doozy!

Check out our last entry on LONGi – the world’s largest solar manufacturer.

Capchem Products

Battery Chemicals for…

  • Most modern devices, including the phone or computer you’re reading this on
  • Power tools
  • Electronic vehicles and charging stations
  • Energy storage & data storage units
  • Trains & modern rail transit systems
  • Power grids
  • Wind power turbines
  • Water/gas/electricity meters
  • Computer boards
  • Satellites
  • Tire gauges

 

Capacitor Chemicals for things like…

  • Industrial power supply storage (commonly used at power stations and in modern electricity systems)
  • TVs, computers, & smartphones
  • Electronic chargers
  • Air conditioning systems
    Refrigerators
  • Washing machines
  • Computer servers
  • Bitcoin mining machines
  • LED lighting
  • Infrared security cameras

(they have over 50% of the domestic market in this category!)

 

Semiconductor chemicals for MORE things like…

  • Screens on phones, TVs, & auto-displays
  • Computer chips
  • 5G infrastructure
  • Cloud computing hardware

 

Organic Fluorine Chemicals for a whole slew of other things, like….

  • Inhalation anesthetics
  • Antiviral drugs
  • Rubber materials
  • Medical devices
  • Niche cleaning materials for OLED screens, optic lenses, jet engines, computer chips & medical equipment
  • Lubricants
  • Film evaporation
  • Power grid insulation & protection
  • Datacenter & semiconductor cooling
  • Firefighting foam water
  • Cookware
  • Waterproof coatings
  • Semiconductor packaging
  • Flexible display materials like in this neato Samsung phone pictured

 

So! You are basically surrounded by Capchem chemicals right now and in your everyday life. Whether you are living in China or not – chances are that your home has something made with Capchem chemicals.

The ‘Technology’ in Capchem Technology Group

Capchem does seem to stand out from some other competing manufacturers in that it places a high focus on research and innovation. They have over 650 patents filed, mostly around chemical compounds and applications, and the R&D staff accounts for over 20% of the total number of employees.

Company History

The company was founded in Shenzhen in 1996 with a focus on making ethylene glycol. By 1999 they had expanded to several other chemicals and were selling abroad to markets like South Korea and Japan.

With a new focus on research and development, the company renamed itself from a Chemical company to a Technology company in 2008 and went public on the Shenzhen stock market in 2010.

By 2011 they became the leader in the domestic market and had grown export sales to over 30% of total revenue. Major clients at this time included (and still include) Samsung, Panasonic, & Sony.

In 2018 the company was fully on board with a global expansion plan and set up entities in the USA and more of Europe.

Since then, the growth has been quite strong! Let’s take a quick look at their financials.

Top Line Financials

Capchem has steadily grown its revenue over the past 9 years and hit an explosive growth spurt in 2021 after the firm’s efforts to expand abroad started to pan out a lot more.

The stock price has (mostly) reflected the strong financials. The stock opened at 14 RMB per share in early 2010. It then grew steadily to the mid-20s RMB per share by the beginning of the 2020 pandemic.

After a surge to over 86 RMB in 2021, the price is now trading around 42 RMB as of writing this article in 2022/12.

Current data from MarketScreener has Capchem having a great year in 2022 – with 10.5 billion in revenue, and then doubling its 2021 revenue by 2024 to nearly 15 billion RMB. It’s important to note that this is a technical prediction based on current data the company has publicly provided.

Would you like to add Capchem to your portfolio? Capchem is a core component of ExpatInvest’s China Information Technology Fund.

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