21 Century Business Herald reporter Han Xun reporting from Shanghai
The titanium dioxide market was in a business cycle last year, and the increase of product sales price has brought considerable benefits to relevant listed companies.
A few days ago, Anhui Annada Titanium Industry Co.Ltd(002136) ( Anhui Annada Titanium Industry Co.Ltd(002136) . SZ) released the performance express of 2021. During the reporting period, the announcement showed that the company achieved an operating revenue of 2.047 billion yuan, a year-on-year increase of 82.49%; The net profit attributable to the parent company was 18.415 billion yuan, a year-on-year increase of 18.415 billion yuan.
Prior to this, other listed companies in the titanium dioxide industry Gpro Titanium Industry Co.Ltd(000545) ( Gpro Titanium Industry Co.Ltd(000545) . SZ), Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) ( Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) . SZ) have also released the forecast of performance increase in 2021. Contrary to the performance growth, the share prices of titanium dioxide listed companies have been falling since September last year.
price rise, performance benefit
The data show that titanium dioxide is an important inorganic chemical pigment. The main component is titanium dioxide. At present, there are two production processes: sulfuric acid method and chlorination method.
China's titanium dioxide industry began in the mid-1950s and is currently the world's largest producer of titanium dioxide.
By 2021, the national titanium dioxide production capacity will be 4.495 million tons, and the output will be about 3.86 million tons.
Due to the gap between supply and demand, the price of titanium dioxide increased in 2021.
According to wind data, at the beginning of January 2021, the national average price of titanium dioxide was 17000 yuan / ton. By the end of December 2021, the national average price of titanium dioxide reached 20700 yuan / ton, an increase of 21.76%.
The price rise has directly boosted the performance of listed companies of titanium dioxide. According to the performance express of 2021 disclosed by Anhui Annada Titanium Industry Co.Ltd(002136) recently, One of the reasons for the company's performance growth is "The titanium dioxide market, the company's main product, is in a business cycle. The company seized the market opportunity, actively responded to the adverse effects such as the rise in the price of raw and auxiliary materials, increased the load of the device, widened the marketing channels and optimized the marketing structure. The production and sales of titanium dioxide increased by 20.42% and 17.99% respectively compared with the previous year, and the operating revenue and net profit increased by 66.52% and 155.61% respectively compared with the previous year."
Similarly, Gpro Titanium Industry Co.Ltd(000545) it is estimated that the net profit attributable to the parent company in 2021 will be 875782 million yuan – 1251117 million yuan, with a year-on-year increase of 135% - 150% Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) it is estimated that the net profit attributable to the parent company in 2021 will be 1.188-1.426 billion yuan, with a year-on-year increase of 150% - 200%; Longbai group ( Lb Group Co.Ltd(002601) . SZ) estimates that the net profit attributable to the parent company in 2021 will be 4.577 billion yuan - 5.722 billion yuan, with a year-on-year increase of 100% - 150% Baoji Titanium Industry Co.Ltd(600456) ( Baoji Titanium Industry Co.Ltd(600456) . SH) it is estimated that the net profit attributable to the parent company in 2021 will be 550 million yuan - 580 million yuan, with a year-on-year increase of 51.66% to 59.93%.
Almost all of the reasons for the performance growth of the above companies are that "the titanium dioxide market is in a boom cycle, the product supply is in short supply, and the sales price has increased significantly year-on-year."
industry boom continues, but share price goes down against the market
According to commodity data monitoring, in February 2022, the average price of titanium dioxide in China was 20800 yuan / ton.
"The price of titanium dioxide in February actually decreased slightly." A chemical industry analyst at a securities firm in Shanghai told the 21st Century Business Herald that at present, the titanium dioxide market is still export-oriented, and the export orders are performing well. "Moreover, two international titanium dioxide enterprises have made it clear that they will increase the price of titanium dioxide, and it is expected that the titanium dioxide market will operate steadily and well in the short term."
According to the data of Baichuan Yingfu, the consumption and export of titanium dioxide in China have shown an upward trend in the past five years. From 2017 to 2021, the apparent consumption of titanium dioxide in China increased from 2.259 million tons to 2.47 million tons, an increase of 9.3%. The export volume increased from 831000 tons in 2017 to 1312000 tons in 2021, an increase of 57.9%.
"Especially after the epidemic, China has the most stable output of titanium dioxide in the world." The above-mentioned chemical industry analyst of a securities firm told the 21st Century Business Herald reporter that with the increase of exports, the Chinese market is also in short supply. "So far, the supply is in short supply. This year, a large number of new production capacity in the titanium dioxide market has been put into operation. Whether it can meet the growth demand outside China needs only to be tracked and observed."
However, interestingly, the share prices of listed companies related to titanium dioxide deviated completely from their performance. They have been falling since late September last year, and the decline of relevant stocks was almost 40% and 50%.
The 21st Century Business Herald reporter noted that the decline range is basically between "September 16, 2021 and January 28, 2022".
For example, Anhui Annada Titanium Industry Co.Ltd(002136) from 27.98 yuan to 13.83 yuan, a decrease of 50.57% in more than four months Gpro Titanium Industry Co.Ltd(000545) from 6.41 yuan to 3.53 yuan, a decrease of about 44.93%; Longbai group fell from 38.95 yuan to 24.17 yuan, a decrease of 37.95%.
Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) 's share price peaked ahead of the whole industry, hitting 20.60 yuan on August 9, 2021 and falling to 9.73 yuan on January 28, 2022, a decrease of about 52.77% Baoji Titanium Industry Co.Ltd(600456) was a high price of 74.48 yuan on November 30, 2021, but it also fell to 45.58 yuan on January 28, 2022, a decrease of about 38.80%.
However, since January 28, 2022, the share prices of listed companies related to titanium dioxide have rebounded, and Anhui Annada Titanium Industry Co.Ltd(002136) , Baoji Titanium Industry Co.Ltd(600456) have increased by more than 10% in February this year.
The chemical industry analysts of the above securities companies believe that the new production capacity in 2022 is about 1.1 million tons. "The price of titanium dioxide will also slow down after the new production capacity is put into operation and gradually return to the normal level. Therefore, the increase of relevant stocks this year will certainly not be as large as that in the first three quarters of last year, and the deviation between performance and stock price is also expected."
