Under the multiple effects of environmental protection policy, production restriction, epidemic situation and commodity price rise, the downstream demand of glyphosate industry increased rapidly, but the capacity expansion was limited, which led to the rise of sales prices and the performance of relevant listed companies. The agency predicts that glyphosate is expected to remain high in 2022.
As the main listed company of glyphosate in China, the performance express disclosed on Sichuan Hebang Biotechnology Co.Ltd(603077) 3 March showed that the total operating revenue in 2021 was 9.867 billion yuan, an increase of 87.56% year-on-year; The net profit was 3.023 billion yuan, a year-on-year increase of nearly 73 times, and the scale is expected to reach a record high; The basic earnings per share is 0.36 yuan. This means that the company's net profit in the fourth quarter was about 1 billion yuan, basically the same as that in the third quarter.
For performance growth, Sichuan Hebang Biotechnology Co.Ltd(603077) said that the company's main products are glyphosate, glyphosate, soda ash, ammonium chloride and glass, which benefit from the improvement of environmental protection requirements and the further clearing of backward production capacity caused by the epidemic, the restriction of production capacity expansion and the growth of downstream demand, so as to drive up the sales price and enable the company to obtain reasonable operating profit.
Sichuan Hebang Biotechnology Co.Ltd(603077) as a leading platform company for salt and gas, it is located in three major fields: chemical industry, agriculture and new materials. Its business covers the sectors of combined alkali, glyphosate, glyphosate, methionine, glass and photovoltaic products. It is regarded as the southwest soda ash giant and the global leader of glyphosate. Among them, as of the first half of last year, the company had 150000 tons / year of glyphosate and 14500 tons / year of glyphosate.
From the perspective of the industry, due to the poor logistics caused by covid-19 epidemic and the fact that it is an industry with limited development, the new production capacity of glyphosate industry is limited. On the other hand, based on the global food security concerns caused by the epidemic, the Shenzhen Agricultural Products Group Co.Ltd(000061) price increased and farmers' planting enthusiasm increased. After the epidemic, the agricultural industry resumed production in an all-round way, the demand side expanded, and the planting area of crops corresponding to glyphosate increased, resulting in an increase in the demand for glyphosate products.
According to statistics, with the sharp rise in the price of bulk commodity raw materials, the average market price of glyphosate in 2021 rose from 27799 yuan / ton at the beginning of the year to more than 80000 yuan / ton at the end of the year, an increase of 189%. Among them, the price in the second half of the year has reached a new high in nearly 10 years.
Under this background, many glyphosate related companies are listed in advance.
Hubei Xingfa Chemicals Group Co.Ltd(600141) it is estimated that in 2021, the company will realize a net profit attributable to the shareholders of the listed company of 4.2-4.4 billion yuan, with a year-on-year increase of up to 6 times. During the reporting period, the chemical industry ushered in a boom cycle. The sales prices of the company's main products such as silicone, glyphosate, dimethyl sulfoxide and yellow phosphorus increased significantly year-on-year, and the profitability was significantly enhanced.
Shandong Weifang Rainbow Chemical Co.Ltd(301035) performance forecast shows that last year, the company will realize a net profit attributable to the parent company of 700 million yuan to 850 million yuan, with a year-on-year increase of 59.95% to 94.23%. The company said that the food security concerns caused by the global covid-19 epidemic have boosted the strong demand for global bulk Shenzhen Agricultural Products Group Co.Ltd(000061) and the bulk Shenzhen Agricultural Products Group Co.Ltd(000061) prices have remained high. The high operation of bulk Shenzhen Agricultural Products Group Co.Ltd(000061) prices has led growers to expand the planting area and increase the input of agricultural inputs. The overall demand for global crop protection products is booming. The sales and prices of the company's main products have increased, and the annual performance has increased year-on-year.
In addition, Zhejiang Xinan Chemical Indusyrial Group Co.Ltd(600596) said that benefiting from the sharp year-on-year rise in the prices of glyphosate, silicone, industrial silicon and other products, it is expected to achieve a net profit of 2.6 billion yuan to 2.7 billion yuan in 2021, with a year-on-year increase of 344% to 362%.
Zhejiang Xinan Chemical Indusyrial Group Co.Ltd(600596) executives pointed out in an institutional survey at the end of last year that glyphosate, as the world's largest single pesticide product, has not added capacity supply in the past five or six years, and the whole industry is in a tight balance between supply and demand. At present, most of the production capacity of the industry is concentrated in the top three or four enterprises. Considering the market development ability, this pattern will not change much on the whole; On the demand side, factors such as the continuous increase of global cultivated land area, the transfer of demand for competitive products and the gradual liberalization of GM will provide support for the sustained prosperity of glyphosate for a considerable period of time.
In addition, Shenzhen Noposion Agrochemicals Co.Ltd(002215) benefited from the growth of sales volume of pesticide preparation business, and realized a net profit of 290 million yuan last year, with a year-on-year increase of about 70%.
Analysts pointed out that in the long run, under the favorable policies of the state to promote agricultural development, the glyphosate market is expected to continue to prosper in 2022. On the one hand, the new capacity of glyphosate is limited, and the supply and demand maintain a tight balance; On the other hand, the high price of raw materials in the upstream supports the continuous upward price of glyphosate.
