The U.S. House of Representatives Rules Committee plans to hold a second vote on the Marijuana Opportunity, Reinvestment and Exemption Act (MORE) next week, according to media reports. The MORE Act, drafted by the chairman of the U.S. House of Representatives Judiciary Committee, aims to remove marijuana from the U.S. federal list of controlled substances, eliminate criminal penalties associated with it, and promote social justice in the industry. At present, 37 states, 4 territories and the District of Columbia have legalized medical marijuana, of which 18 states, 2 territories and the capital have also legalized non-medical marijuana. Stimulated by the news, industrial hemp U.S. stock Clever Leaves surged 143% on Friday.
Industrial hemp stocks soar
Industrial hemp refers to hemp with a mass concentration of THC less than 0.3%, does not show psychoactive properties, and has high fiber content; it has a wide range of uses: seeds, mosaic leaves, skins, stems, and roots can be used in textiles, food, daily chemicals, medicine and other fields , overseas mature markets have added CBD-based cannabinoids to more application scenarios.
Relevant data counts the list of industrial hemp concept stocks with year-on-year performance growth in 2021, and a total of 22 stocks are on the list. The highest net profit increase was Kangenbei and Chengzhi shares, which were 350% and 201.35%, respectively, and the net profit of seven shares including Jifeng Technology and Harbin Pharmaceutical Co., Ltd. doubled year-on-year.
Some analysts pointed out that if the "MORE Act" is voted and signed by the president, the United States may become the third country to fully legalize marijuana after Uruguay and Canada. From the perspective of market size, under the neutral assumption, the market size of the global cannabis industry will increase to 370 billion by 2024, and the compound annual growth rate from 2020 to 2024 will reach 18.88%.
Among them, Rhine Biotech recently disclosed the progress of the U.S. industrial hemp construction project. After the announcement that the project will reach official mass production before June 30, 2022, Rhine Biotech recorded 3 daily limits within 5 trading days, with a cumulative increase of 32.64%. The latest A shares The total market value is 6.133 billion yuan.
Industrial hemp drives plant lighting demand again
Industrial hemp has strengthened in an all-round way, and the demand for plant lighting has to become hot again, because indoor cultivation is currently the mainstream of cannabis cultivation in the United States, which is driving the growth of plant lighting demand.
The data shows that compared with traditional light sources, LEDs have many advantages, such as high photoelectric conversion efficiency, easy spectrum control and combination, small size, long life, and low energy consumption.
In 2021, the global demand for plant lighting LED lamps is 3.2 billion US dollars, and will reach 7 billion US dollars by 2026. The global plant lighting system level market in 2017 is only about 3.8 billion US dollars; in 2027, it will rapidly increase to 17 billion US dollars, with a compound annual growth rate of 16%; the LED device level market is only US$100 million in 2017, and will expand to 700 million US dollars in 2027; The compound growth rate reached 21%.
In addition, with the improvement of LED light efficiency, the continuous reduction of costs, and the domestic and local policy support for digital and modern agriculture, LED plant lighting solutions have played a role in solving the impact of limited land resources and unstable climate on agriculture and harvest stability. Important role, huge room for development.
Domestic LED drive power leader benefits
The power supply stocks in the layout of plant lighting include Songsheng Co., Ltd., Inventronics, Maoshuo, Netac Intelligent, etc., benefiting from the outbreak of market demand, the driving power supply is rapidly increasing.
On March 26, LED drive power manufacturer Songsheng Co., Ltd. released its 2021 annual report. During the reporting period, both revenue and net profit increased year-on-year in 2020, and plant lighting revenue increased by 435.69%. In 2021, Songsheng Co., Ltd. achieved operating income of 1.1 billion yuan, an increase of 62.74% year-on-year in 2020; attributable to listed companies The net profit of shareholders was 129 million yuan, a year-on-year increase of 29.77% in 2020. As for the main reason for the growth in performance, Songsheng explained that the LED plant lighting drive power business, as one of the important strategic development directions of Songsheng, has become an important new growth point for the business development of Songsheng. In 2021, Songsheng's plant lighting LED drive power product revenue will be 446 million yuan, a year-on-year increase of 435.69%, driving the rapid growth of Songsheng's operating income during the reporting period.
Inventech has a first-mover advantage in the field of horticultural lighting, and has made arrangements in terms of technology, patents, intelligent interfaces, etc. in advance, especially in the aspects of systematic patents and product research and development. With the product planning and brand recognition advantages accumulated in the early stage, the company in the outbreak seized market opportunities, and the revenue in Europe and South America increased significantly year-on-year throughout the year. The 2021 semi-annual report shows that the company has a first-mover advantage in the field of plant lighting, and it is ahead of schedule in terms of technology, patents, and intelligent interfaces, especially in systematic patents and product development. The company's products are used in plant lighting. After the legalization of industrial hemp, Infinet also experienced an instantaneous daily limit. At present, Inventronics has provided LED drive power solutions for many plant factories in the United States, Europe, Asia, etc.
Maoshuo Power has vigorously developed high-power lighting drive products and actively entered the grow light drive market. For the field of plant lighting, the P1 and P1H series 320W-680W high-power drivers are released. According to the characteristics of plant lighting, special requirements are put forward in terms of function, life, and maintainability. One of the biggest highlights of this series of products is that the "hot swap" function has been added for the first time in the industry to realize online replacement and maintenance of plant growth lamp modules.
Netac Intelligent independently researches and develops power management system and central control system. The plant factory management system can be used for high economic crops and indoor vegetable and fruit planting industry. At present, the company's plant lighting products and plant factory management system have been recognized by some downstream customers. In the first half of 2021, its plant lighting achieved revenue of 107 million yuan, a year-on-year increase of 243%.
The industry urgently needs plant lighting industry standards
Despite the rapid development of domestic plant lighting industry demand, compared with European and American countries, the lack of quality evaluation standards for greenhouse plant fill lights made it difficult for users to compare various lighting technologies, resulting in market confusion and hindering the development of the industry. The industry believes that the introduction and implementation of plant lighting industry standards will help accelerate the development of the industry. Previously, the "Technical Specifications for Quality Evaluation of Greenhouse Plant Fill Lights" organized by the Ministry of Agriculture and Rural Affairs of China was officially implemented, which standardized the performance indicators and testing methods for the quality evaluation of greenhouse plant fill lights. In terms of performance, the standard makes clear requirements for electrical characteristics, optical characteristics, and lifespan. This standard regulates industry technology research and development to a certain extent. At this stage, the Shenzhen Lighting and Display Engineering Industry Association and the Urban Agriculture Research Institute of the Chinese Academy of Agricultural Sciences jointly The group standard of "Technical Specifications for Crop Breeding Accelerator" has been openly solicited for the public, aiming to promote the overall leap of the whole innovation chain of "crop breeding + plant lighting", optimize the industrial structure of the industry, and promote the high-level development of product quality in the industry. Relevant enterprises, institutions, colleges and other units actively participated.
